The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised concerns over key aspects of President Bola Tinubu’s new Executive Order on Upstream Petroleum Sector Incentives.
The oil workers warned that some order provisions could conflict with existing laws and potentially exacerbate systemic inefficiencies.
Speaking to journalists in Abuja yesterday, PENGASSAN president, Festus Osifo, welcomed some of the intentions behind the order, particularly efforts to reduce production costs and streamline contracting cycles.
However, Osifo described other aspects as legally problematic, economically unrealistic, or lacking critical infrastructure support.
Osifo pointed specifically to a clause in the order urging flexibility in the implementation of the Nigerian Content Development and Monitoring Board (NCDMB) Act as a major red flag.
According to him, encouraging regulatory laxity in local content could undermine Nigeria’s long-term industrial goals, despite some immediate cost pressures facing the sector.
“It is good to pass laws and executive orders, but we are drawing the government’s attention to some of the challenges that may arise and encouraging them to do the needful.
We support the goal of reducing upstream production costs, but we believe the measures may not be far-reaching enough due to foundational industry problems.
There is a caveat in the order asking the Nigerian Content Development and Monitoring Board (NCDMB) to be flexible with implementation, this raises red flags for us.
We are not opposing the Executive Order, We’re only urging the government to do the needful, to make it workable, legal, and sustainable,” he said.
While PENGASSAN supports reducing upstream costs, Osifo said such efforts must not trigger unintended price increases for consumers.
Speaking further, the PENGASSAN president expressed concern over rising insecurity in parts of the country, noting its impact on oil and gas operations.
Osifo urged the government to intensify efforts to secure oil-producing areas to ensure uninterrupted exploration and production activities.
On the recent Democracy Day celebration, Osifo said the union acknowledged the day’s symbolic significance but emphasised the need for deeper democratic dividends beyond ceremonies.
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