Regulatory issues threats to oil investment, others, says PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned that regulatory uncertainty, overlapping mandates, and lengthy approval processes could hinder new investments and impede growth in Nigeria's oil and gas sector. During the fifth PENGASSAN Energy and Labour Summit 2026 in Abuja, PENGASSAN President Festus Osifo raised these concerns alongside government officials, regulators, operators, and labor leaders.

The summit aimed to address ways to enhance stability and draw investment into the industry, which is crucial as the Federal Government seeks to boost crude oil production, entice investment, and enhance domestic refining and gas development. Osifo emphasized that due to the capital-intensive nature of the petroleum industry, regulatory certainty is vital for long-term investor commitments.

He noted that while the Petroleum Industry Act 2021 marked a significant reform, subsequent changes to the regulatory framework, such as moving some fiscal provisions from the Petroleum Industry Bill to the Nigeria Revenue Act and the use of executive orders, have introduced uncertainty. Additionally, overlapping responsibilities among regulatory agencies were highlighted as a major issue, with operators facing repetitive approvals, multiple inspections, and conflicting directives.

Osifo stressed the need for clear rules, predictability, and worker protection, while highlighting the importance of streamlining approval processes and leveraging technology to reduce regulatory bottlenecks. He warned that delays in approvals could disrupt development plans, final investment decisions, and projects aimed at increasing oil and gas production, which could erode investor confidence and disrupt stability.

The PENGASSAN president called for smarter regulations that understand commercial realities, embrace technology, and eliminate unnecessary duplication. He also demanded stronger protection for workers affected by industry changes, such as acquisitions, divestments, and restructuring, urging the government to prevent job losses and erosion of workers' pensions, collective bargaining agreements, and established rights.

Furthermore, Osifo criticized the misuse of expatriate quotas, advocating for stricter enforcement to ensure foreign workers are only employed when genuine skill gaps exist. He emphasized that expatriate appointments should be tied to measurable knowledge transfer and Nigerian workers' succession plans. The Nigerian National Petroleum Company Limited (NNPC) CEO, Bayo Ojulari, added that regulatory stability relies on the professionals implementing policies and managing operations.

He called for improving the employee value proposition and creating an environment where workers feel confident choosing NNPC as their preferred workplace. The Minister of Labour and Employment, Muhammad Dingyadi, echoed the need for stronger regulations to boost investor confidence, protect workers, and enhance the petroleum industry's competitiveness.

He urged stakeholders to address regulatory gaps, environmental concerns, energy transition, and local content development to ensure the industry remains a reliable source of revenue, jobs, and sustainable economic growth.