The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that recent reforms in the oil and gas industry could unsettle the sector if not backed by sustained stakeholder engagement and policy clarity.

The union’s President, Festus Osifo, gave the warning on Thursday in Lagos while addressing journalists on the Federal Government’s executive order restructuring oil and gas revenue remittances.

Osifo stressed that Nigeria’s oil and gas industry remains the backbone of the nation’s economy and must be handled with utmost care to preserve stability, attract investment and safeguard jobs.

According to him, consistent dialogue among government, regulators, operators and labour unions is critical to sustaining the gains recorded since the implementation of the Petroleum Industry Act (PIA).

He recalled that the PIA, signed into law in August 2021, was designed to provide regulatory certainty, enhance fiscal transparency and restore investor confidence after years of declining capital inflows into the sector.

“We worked closely with key stakeholders and members of the National Assembly to ensure the emergence of a legal framework capable of stabilising the industry and incentivising global investment,” Osifo said.

He noted that in a highly competitive global energy market, policy consistency and clarity remain indispensable in positioning Nigeria as a preferred investment destination.

“There is intense competition globally for investment capital. Clear and predictable policies are essential to retaining investor confidence and operational stability,” he added.

The PENGASSAN president further emphasised that the oil and gas industry accounts for a significant portion of Nigeria’s foreign exchange earnings and government revenue, warning that instability in the sector would have far-reaching economic consequences.

He maintained that protecting the industry is directly linked to safeguarding thousands of jobs and sustaining livelihoods across the value chain.

“This industry must continue to grow. When it grows, jobs are secured and the wider economy benefits,” he stated.

Osifo called for policy alignment and continuous engagement among all stakeholders to consolidate reforms, strengthen efficiency and ensure long-term growth.

He added that sustaining recent progress in the sector would enhance operational performance, boost investor confidence and support national development objectives.