Significant job losses are anticipated in Nigeria’s Oil and Gas sector due to President Bola Tinubu’s recent Executive Order mandating the reorganization of oil and gas revenue remittances to the Federation Account and abolishing the 30 percent management fee previously retained by the Nigerian National Petroleum Company Limited (NNPCL) on oil and gas profits, as cautioned by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
On Wednesday, Tinubu issued an Executive Order mandating the direct submission of royalty oil, tax oil, and profit oil to the Federation Account, according to Daily Trust.
Bayo Onanuga, spokesperson for Tinubu, clarified that the initiative seeks to improve transparency, diminish discretionary fund retention, and fortify statutory transfers to the three levels of government.
Comrade Festus Osifo, President of PENGASSAN, expressed at a news conference in Lagos yesterday that his union is concerned about the ruling due to its destabilizing impact on the nation’s oil and gas sector.
He asserts that the unresolved impact will result in significant job reductions among its members employed by the Nigerian National Petroleum Company Limited (NNPC).
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