The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that significant job losses could hit Nigeria’s oil and gas industry following a recent Executive Order issued by President Bola Tinubu on oil revenue remittances.

The Executive Order directs the restructuring of oil and gas revenue flows to ensure the direct remittance of royalty oil, tax oil and profit oil into the Federation Account, effectively removing the 30 per cent management fee previously retained by the Nigerian National Petroleum Company Limited (NNPCL).

The order, issued on Wednesday, is intended to overhaul the financial operations of the national oil company and tighten controls over revenue generated from the sector.

Explaining the policy, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said the directive is aimed at improving transparency, curbing discretionary retention of funds and strengthening statutory transfers to the three tiers of government.

However, PENGASSAN has expressed strong reservations about the policy. Speaking at a press conference in Lagos on Thursday, the union’s president, Festus Osifo, said the Executive Order could destabilise the oil and gas sector if not carefully managed.

Osifo warned that the financial squeeze on NNPCL resulting from the removal of the management fee could translate into large-scale job cuts, particularly among workers employed by the national oil company.

According to him, the union is deeply concerned that the policy, while aimed at fiscal transparency, may have unintended consequences for employment, operational efficiency and overall stability in the strategic oil and gas industry.

He urged the federal government to engage critical stakeholders, including labour unions, to review the implementation framework of the Executive Order in order to safeguard jobs while pursuing reforms in the sector.