PENGASSAN President Comrade Festus Osifo
PENGASSAN warns Tinubu’s new oil revenue order could trigger mass job losses in Nigeria’s petroleum sector
LAGOS, Nigeria — The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised alarm over potential massive job losses in the country’s oil and gas industry following President Bola Ahmed Tinubu’s latest Executive Order restructuring how industry revenues are remitted to the Federation Account.
The controversy surrounds a directive compelling the direct transfer of royalty oil, tax oil and profit oil to the Federation Account, effectively scrapping the 30 percent management fee that the Nigerian National Petroleum Company Limited (NNPCL) previously retained on profits.
While the Federal Government maintains the policy aims to enhance transparency and boost statutory allocations across all tiers of government, oil workers warn the fiscal overhaul carries severe human consequences.
Presidential spokesman Bayo Onanuga had defended the order, stating it would curb discretionary fund retention and improve accountability in oil revenue management.
However, labour leaders see a different reality unfolding.
Speaking in Lagos, PENGASSAN President Festus Osifo cautioned that the restructuring could destabilise the sector and trigger significant job cuts, particularly within NNPCL.
“While we recognise the intention to enhance fiscal accountability, we must also consider the unintended consequences on workforce stability,” Osifo stated. “If not properly managed, this could lead to job losses that will affect thousands of families.”
Osifo underscored the oil and gas sector’s critical role in Nigeria’s economic survival, contributing substantially to foreign exchange earnings and government revenue.
He warned against reforms that might undermine operational confidence.
He reminded stakeholders that the Petroleum Industry Act (PIA), enacted in August 2021 after extensive consultations, was specifically designed to provide regulatory clarity, enhance fiscal transparency and restore investor confidence following years of declining investment.
“We worked with stakeholders and legislators to ensure a law that would stabilise the industry and incentivise global investment,” Osifo noted. “Policy consistency is critical. Sudden changes without broad consultation can unsettle the system.”
According to the PENGASSAN president, Nigeria operates within a fiercely competitive global investment climate where capital gravitates toward jurisdictions offering predictability and stable returns.
“There is intense global competition for investment capital, and policy clarity helps Nigeria remain an attractive destination,” he added. “When investors are uncertain, projects slow down. And when projects slow down, jobs are the first casualties.”
Osifo stressed that protecting employment across the entire oil and gas value chain—from upstream exploration to downstream services—must remain a national priority.
“This industry must continue to grow. When the industry grows, jobs are protected and the broader economy benefits,” he said. “When it shrinks, the impact is felt in households, communities and government revenues.”
PENGASSAN is now demanding urgent consultations involving government officials, regulators, industry operators and labour unions to ensure the Executive Order’s implementation does not erode employment or investor confidence.
“We must sustain the progress achieved and ensure that reforms continue to support growth, efficiency and national development,” Osifo urged, calling on policymakers to engage labour leaders before implementing further changes.
With the new revenue framework now taking effect, oil workers warn that time is running out. They contend that meaningful dialogue could ultimately determine whether Nigeria achieves fiscal reform or faces a wave of redundancies across its most vital economic sector.
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