The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised an alarm over Executive Order No. 41, a recent presidential directive aimed at streamlining the fiscal and regulatory framework of the oil and gas sector.
Speaking in Lagos on Thursday, February 19, 2026, PENGASSAN President Mr. Festus Osifo cautioned that the order, which centralizes certain decision-making powers within the presidency, risks introducing “unnecessary political influence” into the professional operations of the Nigerian National Petroleum Company Limited (NNPCL).
The association’s primary grievance is that the executive order was introduced without broad consultation with key industry stakeholders. Osifo alleged that this lack of engagement creates a climate of uncertainty, which he described as the “enemy of investment.”
He warned that while the order seeks to accelerate project approvals, it may inadvertently weaken the NNPCL’s balance sheet and discourage global investors who prioritize regulatory certainty and institutional independence over unpredictable policy shifts.
Beyond administrative concerns, PENGASSAN linked the potential mismanagement of the sector to broader economic instability. Osifo noted that the industry’s performance directly determines the strength of the naira; as exchange rate volatility increases the cost of imported equipment and refined products, only a stable and professionally managed oil sector can grow the earnings needed to support the currency and improve national welfare.
He stressed that any executive action must remain consistent with the Petroleum Industry Act (PIA) to prevent capital flight to more stable African jurisdictions.
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