PENGASSAN Urges Tinubu to Reverse Executive Order on NNPC Revenue Remittance

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged President Bola Tinubu to promptly withdraw the executive order mandating the direct transfer of oil and gas revenues to the Federation Account Allocation Committee.

Tinubu had, on February 18, signed an executive order mandating the Nigerian National Petroleum Company Limited to remit oil and gas revenues directly to FAAC, effectively stripping the company of its oil revenue deduction powers.

Speaking during a press briefing on Thursday, the National President of PENGASSAN, Festus Osifo, described the executive order as a “direct attack” on the Petroleum Industry Act.

Osifo said, “The executive order that was signed by the president yesterday is a direct attack on the PIA. The provisions are sections 8, 9, and 64 of the PIA. It’s a direct attack.”

He argued that the President had used an executive order to set aside a law of the Federal Republic of Nigeria.

“We think that with immediate effect, the president should recall that executive order, and have a second look at it, because we know that the president of the Federal Republic of Nigeria has done everything possible to attract investment to the oil and gas industry,” he added.

While acknowledging that the President has the constitutional power to issue executive orders and safeguard the industry, Osifo insisted that such powers must not supersede existing legislation.

He said, “But we strongly believe that, in this particular case, the president has been misled. We strongly believe that the people advising the president did not actually tell him the entire truth.”

According to him, an executive order cannot override the provisions of an Act passed by the National Assembly.

“You will agree with me that when we talk about executive orders, they cannot supersede the law of the land. Executive order cannot override the provision of a law,” he stated.

Osifo likened the development to “signing an executive order setting aside the Independent National Electoral Commission (INEC).”

“It’s just like the president waking up tomorrow and signing an executive order to decrease the government contribution in pension from the 10% government contribution today to 2%,” he added.

The PENGASSAN president said the move contradicts Tinubu’s efforts to attract both local and international investments into the oil and gas sector.

He argued that given the President’s background in the industry, including his previous experience at ExxonMobil, he would not have signed the order in its current form if fully briefed on its implications.

Osifo described the executive order as “quite troubling” and “an aberration,” warning that it sends the wrong signal to investors.

“This should never have happened because at this time today, the president is telling Nigerians and the international community that he can one day use a law to set aside the grand law or the provisions of our constitution or the extant laws that are enacted by the national assembly,” he said.

He warned that the international community could lose confidence in the PIA, fearing that the government might, through an executive order, alter royalties or override provisions protecting investments.

Osifo also raised concerns over the potential impact on workers, warning that failure to recall the order could jeopardise jobs.

“If this is not recalled, our members are in danger of being declared redundant because NNPC may not be able to meet their obligations to our members,” he said.