Massive job losses loom in Nigeria’s oil and industry on account of President Bola Tinubu’s recent Executive Order directing the restructuring of oil and gas revenue remittances to the Federation Account and removing the 30 percent management fee previously retained by the Nigerian National Petroleum Company Limited, NNPCL, on oil and gas profits, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has warned.
On Wednesday, Tinubu gave the Executive Order directing the direct remittance of royalty oil, tax oil, and profit oil to the Federation Account.
Bayo Onanuga, Tinubu’s spokesman, explained that the development is aimed at enhancing transparency, reducing discretionary retention of funds, and strengthening statutory transfers to the three tiers of government.
President of PENGASSAN, Comrade Festus Osifo, speaking at a press conference in Lagos on Thursday, stated that his union was troubled by such an order because of its destabilising effects on the country’s oil and gas sector.
According to him, the unsettled effect will translate to huge job cuts among its members in the employ of the Nigerian National Petroleum Company Limited (NNPC).
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