The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that President Bola Tinubu’s executive order directing oil revenues to be paid directly into the federation account could undermine the Nigerian National Petroleum Company (NNPC) Limited’s financial structure and put jobs at risk.
The order, signed on February 18, removes NNPC Limited’s authority to deduct operational costs from oil and gas revenues before remitting funds to the Federation Account Allocation Committee (FAAC).
Speaking on Thursday, PENGASSAN president Festus Osifo said the directive conflicts with the Petroleum Industry Act (PIA), which established NNPC Limited as a commercial entity with defined financial powers.
