The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for continued stakeholder engagement following the Federal Government’s executive order restructuring oil and gas revenue remittances.
PENGASSAN President, Mr. Festus Osifo, made the call on Thursday, February 19, 2026, in Lagos during a news conference on the executive order and its implications for the oil and gas industry.
Osifo said it was important to sustain stability and investment in the sector.
He noted that the industry remained central to Nigeria’s economic stability and emphasised the importance of policy clarity to sustain investment momentum and operational confidence.
Osifo explained that the Petroleum Industry Act (PIA), enacted in August 2021, was designed to provide regulatory clarity, improve fiscal transparency and strengthen investor confidence after years of declining investments.
“We worked with stakeholders and legislators to ensure a law that would stabilise the industry and incentivise global investment,” he said.
According to him, sustained collaboration among government, regulators, operators and labour unions remains essential to maintaining growth and competitiveness in the sector.
“There is intense global competition for investment capital, and policy clarity helps Nigeria remain an attractive destination,” the president added.
He noted that the oil and gas industry had supported Nigeria’s economy for decades, accounting for a significant share of foreign exchange earnings and government revenue.
Osifo emphasised that protecting the sector’s stability is closely linked to safeguarding jobs and livelihoods across the value chain.
“This industry must continue to grow. When the industry grows, jobs are protected and the broader economy benefits,” he said.
He stressed that continued dialogue and policy alignment would help preserve the gains recorded in recent years and strengthen long-term investor confidence.
“We must sustain the progress achieved and ensure that reforms continue to support growth, efficiency and national development,” he said.
Osifo said stakeholder cooperation and policy consistency would help ensure long-term growth, operational efficiency and investor confidence in Nigeria’s oil and gas sector.
Similarly, PENGASSAN) has cautioned against what it termed growing political interference in Nigeria’s oil and gas industry.
Osifo claimed that the executive order could weaken the Nigerian National Petroleum Company Limited (NNPCL), discourage investors and ultimately affect ordinary Nigerians.
He alleged that the executive order was introduced without broad consultation with key industry stakeholders, heightening concerns about transparency and regulatory certainty.
“We were not adequately consulted. When policies of this magnitude are introduced without engagement, it creates uncertainty, and uncertainty is the enemy of investment,” he said.
Osifo expressed concern about what he described as increasing political interference in NNPCL’s operations, warning that excessive control could undermine professional management.
He said the company had seasoned professionals who understood the industry’s technical and commercial dynamics.
“But when political considerations override professional judgement, efficiency suffers,” Osifo said.
He argued that insulating NNPCL from undue interference would strengthen its balance sheet, improve transparency and enhance its appeal to global investors.
“If we remove unnecessary political influence, NNPCL can compete effectively with its global peers. That alone would send a powerful signal,” he said.
Osifo linked the sector’s health to the stability of the naira, noting that exchange rate volatility raised import costs and eroded purchasing power.
“When the naira weakens, import costs rise immediately. Equipment, services and refined products become more expensive.
“But when oil and gas earnings grow and are properly managed, they strengthen the currency,” he said.
According to him, a stable oil sector would support the naira, improve wages and enhance living standards.
“The industry is not isolated from the economy. Its performance determines the strength of our currency and the welfare of our people,” he said.
Osifo noted that oil and gas investment across Africa remained competitive, with capital flowing to jurisdictions offering regulatory clarity and stable policies.
“Oil and gas investment is long-term and capital-intensive. Investors will not commit billions of dollars where policies shift unpredictably,” he said.
He cited Nigeria’s marginal field programme, noting that many awarded licences had struggled to reach production, placing financial institutions under pressure.
“When marginal licences fail to convert to production, banks are exposed. That weakens confidence across the financial system,” he said.
Osifo stressed that any executive action must align with the Petroleum Industry Act to avoid negative investor signals.
He warned that regulatory unpredictability could push investors towards more stable jurisdictions.
“We cannot afford capital flight at this time. Nigeria is competing for global energy investment,” he said.
Osifo said PENGASSAN would convene its National Executive Council to review the order and develop an engagement strategy.
“We will engage the government, the Attorney-General, regulators and stakeholders. Our goal is constructive dialogue, not confrontation,” he said.
He reiterated that safeguarding the industry was vital to national development.
“This industry funds infrastructure, education and healthcare. If we weaken oil and gas, we weaken the foundation of other sectors,” he said.
As Nigeria faces economic headwinds, Osifo said preserving regulatory stability in the strategic sector was imperative.
“In oil and gas, stability is prosperity. We must get it right,” he said.
By Yunus Yusuf and Florence Onuegbu
