Tension is rising in Nigeria’s energy sector as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) raises serious concerns over President Bola Tinubu’s 2026 Executive Order affecting oil and gas sector funding. The union warns that the directive could disrupt the Petroleum Industry Act (PIA), weaken investor confidence, and trigger industrial unrest if not urgently reviewed.
According to Mediaplusng.com, PENGASSAN acknowledges the constitutional authority of Bola Tinubu to issue executive directives but argues that the latest order appears to conflict directly with provisions of the Petroleum Industry Act. The union claims the President may have been misinformed by advisers regarding the legal and economic implications of the move.
At the center of the controversy is the reported diversion of statutory funds, including Frontier Exploration and Gas Infrastructure fees, into the Federation Account. PENGASSAN insists that these funds are specifically structured under the PIA to drive sectoral development, exploration expansion, and infrastructure growth within Nigeria’s oil and gas value chain.
Mediaplusng.com reports that union leaders describe the Executive Order as a legal overreach, arguing that no executive directive can supersede an Act of the National Assembly. They warn that altering the funding structure established under the PIA without legislative amendment could amount to a direct violation of existing petroleum governance laws.
Beyond the legal debate, PENGASSAN raises concerns about the potential economic fallout. The union cautions that abrupt policy shifts may create uncertainty in the oil and gas industry, which is already navigating global energy transitions and competitive investment climates. According to the association, policy instability could discourage foreign direct investment and slow ongoing reforms initiated under the PIA framework.
According to Mediaplusng.com, the union also highlights possible workforce implications, warning that nearly 4,000 of its members within NNPC Limited could face redundancy risks if funding mechanisms and operational structures are significantly altered. PENGASSAN describes the situation as a looming employment crisis that demands immediate attention.
Union officials stress that the Petroleum Industry Act was designed to provide regulatory clarity, enhance transparency, and attract long-term investment into Nigeria’s oil and gas sector. They argue that undermining financial provisions embedded in the law could reverse gains made since the PIA’s implementation.
Industry analysts note that the Frontier Exploration Fund and Gas Infrastructure funding streams are critical to expanding Nigeria’s energy reserves and accelerating domestic gas development. Any disruption, stakeholders say, may delay exploration projects, infrastructure upgrades, and broader energy security goals.
PENGASSAN warns that investor confidence thrives on predictability and rule of law. The union states that sudden executive adjustments without extensive stakeholder consultation risk sending negative signals to international partners and multinational energy companies operating in Nigeria.
The association calls for the immediate recall or suspension of the 2026 Executive Order pending broader consultation with lawmakers, industry experts, and labor representatives. It urges the Federal Government to ensure that any policy reform aligns strictly with statutory provisions and global best practices in energy governance.
While reiterating its respect for the Presidency, PENGASSAN emphasizes its readiness to defend the integrity of the Petroleum Industry Act and protect the welfare of its members. The union signals that failure to address its concerns could lead to coordinated industrial action within the sector.
As the debate unfolds, stakeholders across Nigeria’s energy landscape closely monitor developments, recognizing that decisions taken now could shape the future of oil and gas regulation, workforce stability, and international investment flows in Africa’s largest energy market.
The unfolding dispute places Nigeria’s energy governance framework under renewed scrutiny, reinforcing the importance of legal clarity, investor assurance, and sustainable policy direction in safeguarding the nation’s strategic petroleum industry.
