The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President to rescind the recent executive order directing the direct remittance of oil and gas revenues to the Federation Account Allocation Committee (FAAC).
On February 18, the president signed an executive order mandating that revenues from the oil and gas sector be paid directly into FAAC, effectively removing the Nigerian National Petroleum Company (NNPC) Limited’s previous authority to make deductions from oil earnings.
Speaking at a press briefing on Thursday, PENGASSAN National President, Festus Osifo, described the order as a “direct attack” on the (PIA).
According to Osifo, sections 8, 9, and 64 of the PIA clearly outline the powers and operational framework of NNPC Limited, and the new executive order contradicts those statutory provisions.
“The executive order that was signed by the president is a direct attack on the PIA,” he said, arguing that an executive order cannot override an existing law passed by the National Assembly.
Osifo acknowledged that the president has the constitutional authority to issue executive orders and the responsibility to safeguard the oil and gas sector. However, he insisted that in this instance, the president may not have been fully briefed on the implications of the decision.
“We strongly believe that the president has been misled and that those advising him did not present the full picture,” he said.
The PENGASSAN leader warned that the move could undermine investor confidence at a time when the administration is seeking to attract both local and international investments into the energy sector. He argued that such actions could create uncertainty about the stability of Nigeria’s legal and regulatory framework.
Osifo further cautioned that allowing an executive order to override provisions of the PIA could set a troubling precedent, likening it to using an executive directive to alter established constitutional or statutory institutions.
He described the order as “an aberration” and questioned the signal it sends to global investors, suggesting that it could fuel concerns that key provisions protecting investments might be altered unilaterally.
Osifo also raised concerns about potential implications for workers, warning that if NNPC Limited is unable to meet its financial obligations under the new arrangement, jobs could be at risk.
PENGASSAN urged the president to immediately review and withdraw the executive order, stating that dialogue and adherence to the provisions of the PIA remain essential to sustaining confidence and stability in Nigeria’s oil and gas industry.