A major industrial dispute is unfolding in Nigeria’s energy sector following strong opposition to the Tinubu Oil Revenue Executive Order, with the Petroleum and Natural Gas Senior Staff Association of Nigeria warning that the directive could destabilize the oil and gas industry if left unchanged.
The union has formally called for the immediate withdrawal or review of the executive order, which mandates that all proceeds from crude oil sales and related revenues be remitted in full to the Federation Account through the Central Bank of Nigeria. According to PENGASSAN, the policy as currently structured threatens the operational flexibility of critical petroleum agencies and could trigger widespread job losses across both upstream and downstream segments of the industry.
At a high level meeting in Abuja, the leadership of the association emphasized that while improving fiscal transparency remains a laudable objective, the sweeping implementation of the Tinubu Oil Revenue Executive Order does not adequately reflect the technical and reinvestment requirements of the petroleum sector.
Union leaders argued that regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority depend on a degree of financial independence to function effectively. They maintain that removing the capacity of these agencies to retain part of their internally generated revenue for operational expenses could severely undermine regulatory oversight, safety compliance, and industry efficiency.
Beyond institutional concerns, PENGASSAN has also raised alarms about worker welfare. The association noted that thousands of employees rely on revenue generated internally by these agencies for their salaries and benefits. Centralizing all funds without establishing a guaranteed and timely disbursement mechanism, the union warned, could jeopardize livelihoods and disrupt the stability of the workforce.
Sources indicate that the union has begun consultations with its nationwide branches and is considering industrial action should the presidency fail to initiate dialogue with key stakeholders. PENGASSAN insists that the oil and gas sector operates under unique conditions and cannot be subjected to rigid fiscal controls designed for non revenue generating government agencies.
Industry experts have since weighed in, urging both parties to seek a balanced solution. Analysts argue that while government revenue consolidation is essential, policies affecting the petroleum industry must preserve operational agility, particularly at a time when the global oil market remains volatile. Any framework that increases bureaucratic bottlenecks, stakeholders warn, could deter foreign direct investment and weaken Nigeria’s competitiveness.
The union is proposing a modified arrangement that would allow regulatory agencies to retain a defined percentage of revenues for essential activities including infrastructure maintenance, workforce training, and the acquisition of modern monitoring systems to combat oil theft and pipeline vandalism.
As tensions mount, attention has shifted to the presidency to determine whether it will open negotiations or proceed with full enforcement of the directive. PENGASSAN has reiterated that its position is not an outright rejection of reform but a call for strategic adjustments to safeguard the nation’s primary revenue generating industry.
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The association is expected to submit a formal memorandum to the Ministry of Petroleum Resources and the National Assembly, seeking legislative engagement aimed at protecting workers’ interests and ensuring the long term stability of Nigeria’s oil dependent economy.