PENGASSAN raises alarm over ‘frequent alteration’ of PIA law

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed concern over the frequent changes made to the Petroleum Industry Act (PIA) amid discussions about the return of fuel subsidy. PENGASSAN's President, Comrade Festus Osifo, warned that these alterations could damage investors' confidence in Nigeria's oil and gas sector.

The Petroleum Industry Act was passed in 2021 and signed into law by then-President Muhammadu Buhari. Its aim was to modernize the legal, fiscal, and regulatory framework of Nigeria's oil and gas industry. Osifo criticized the use of executive orders to amend the law, arguing that given the capital-intensive nature of the industry, stability and predictability in regulations are essential.

He emphasized that the sector requires a regulatory environment that is transparent, efficient, and fair to all parties involved. The frequent amendments to the PIA, such as the removal of some fiscal provisions and their transfer to the Nigeria Revenue Act, as well as the use of executive orders to make amendments, amplify uncertainty and disruption, according to Osifo.

He advised the encouragement of policies that support local refining of petroleum products, such as the expansion of Liquefied Natural Gas and Compressed Natural Gas. PENGASSAN currently recognizes two main petroleum regulators within the PIA framework: the NUPRC for upstream operations and the NMDPRA for midstream and downstream activities.

The main issue, according to PENGASSAN, is not the number of regulatory institutions, but their efficiency in fulfilling their mandates. Overlapping responsibilities should not result in repetitive approvals, multiple inspections, or conflicting directives. Osifo stressed the importance of maintaining clear and efficient approval processes to attract investments and enable operators to make long-term decisions with confidence.

He also highlighted the need to protect the interests and livelihoods of Nigerian oil and gas workers as the industry evolves, ensuring that regulation does not become an obstacle to investment.