Oil Sector Uncertainty Deepens as NUPENG Demands Clarity on Tinubu’s Executive Order

Fresh unease has gripped Nigeria’s oil and gas industry following the executive order signed by President Bola Ahmed Tinubu, with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) calling for an urgent, broad-based stakeholders’ meeting to address mounting concerns.

The union said the directive, which touches on revenue remittances in the petroleum sector, has sparked widespread anxiety among workers across the upstream, midstream and downstream value chains.

In a statement issued by its President, Prince Williams Akporeha, and made available to Business Hallmark on Sunday, NUPENG appealed to the president to immediately engage key stakeholders, including organised labour, regulators, operators and host community representatives, to provide detailed clarification on the order.

According to the union, the absence of comprehensive public explanation has fueled speculation and heightened tension within the industry, particularly among employees of the Nigerian National Petroleum Company Limited (NNPCL) and other major players.

“As critical stakeholders in Nigeria’s oil and gas value chain, petroleum workers have expressed deep concern over the content, intent and implications of the Executive Order,” the statement read.

NUPENG stressed that the oil and gas industry remains central to Nigeria’s economic stability, contributing significantly to government revenue, foreign exchange earnings and employment. It warned that policy changes introduced without adequate consultation could have far-reaching implications for regulatory structures, investment decisions, operational stability and labour relations.

The union particularly sought clarity on the scope and objectives of the order and how it aligns with the provisions of the Petroleum Industry Act (PIA). It questioned whether the directive amends, reinterprets or expands existing legal frameworks established under the Act.

It also demanded assurances regarding the potential impact on workers’ welfare, job security, collective bargaining agreements and ongoing restructuring processes within the industry. In addition, the union called for clarity on how the directive may affect indigenous participation and local content development in the sector.

The executive order mandates the direct remittance of royalty oil, tax oil, profit oil and profit gas into the Federation Account, effectively stopping the longstanding practice of deductions at source by NNPCL under certain production sharing and risk service contracts.

While some industry stakeholders, including capital market operators, have welcomed the move as a step toward strengthening fiscal transparency and revenue accountability, others have voiced concerns about its legal and operational implications.

As part of the broader debate, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has also faulted aspects of the directive, arguing that elements of the order could conflict with the PIA and insisting that executive actions must operate within the confines of existing legislation.

NUPENG warned that without proper engagement and clarification, varying interpretations of the order could destabilise operations and erode the industrial harmony that has been carefully maintained in recent years.

“We firmly believe that a timely stakeholders’ meeting will help address misconceptions, reduce tension and strengthen trust in government policy,” Akporeha stated.

Reaffirming its commitment to national development and constructive dialogue, the union nonetheless emphasised its constitutional responsibility to protect the rights and welfare of its members.