The president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has warned that regulatory uncertainty and overlapping mandates among government agencies are threatening investment in Nigeria’s oil and gas industry.
Osifo spoke at the 5th PENGASSAN Energy and Labour Summit (PELS) 2026 in Abuja on Wednesday.
The labour leader called for a more predictable, transparent and efficient regulatory framework to attract investment and sustain growth in the sector.
He said the theme of the summit, “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” was deliberately chosen because investors require clear rules and predictability before committing capital to long-term projects.
According to him, the Petroleum Industry Act (PIA) 2021 was a major milestone in the effort to reform the industry, but subsequent alterations to the framework have created uncertainty among investors.
He expressed concern over the removal of some fiscal provisions from the PIA and their movement to the Nigeria Revenue Act, as well as the use of executive orders to amend provisions of the law.
He also raised concerns about overlapping responsibilities among the various institutions regulating the oil and gas industry, saying operators should not be subjected to repetitive approvals, multiple inspections or conflicting directives.
He said while regulation was necessary to protect workers, communities, investors and government revenues, it should not become an obstacle to investment.
Osifo urged regulators to streamline approval processes to enable operators to make timely investment decisions, noting that delays could affect new development plans, final investment decisions and production growth.
The PENGASSAN president also called for stronger protection of workers during acquisitions and divestments in the oil and gas sector. He said changes in ownership of oil and gas assets should not lead to workers losing their jobs, pensions, collective bargaining agreements and other established rights.
He equally warned against abuse of expatriate quotas, saying foreign workers should only be engaged where genuine skills gaps exist.
According to him, every expatriate engagement should be tied to measurable knowledge transfer and succession plans that would ultimately increase Nigerian capacity.
“These do not instil confidence or promote stability. Instead, they amplify uncertainty and disruption.
“What we require is not weak regulations. What we need is smarter regulations; regulations that understand commercial realities, embrace technology and eliminate unnecessary duplication.
“Capital is mobile and investors will naturally gravitate towards jurisdictions where there is clarity and efficiency.
“Licences and assets may change hands, but workers are not commodities to be discarded at will,” Osifo said.
Osifo further called for stronger enforcement of health, safety, environmental and local content regulations, stressing that increased oil production must not come at the expense of workers’ lives.
He also urged the government and industry stakeholders to accelerate investment in domestic refining, gas processing and LPG, CNG and LNG infrastructure, noting that Nigeria’s abundant gas resources could support power generation, petrochemicals, fertiliser production, transportation and industrialisation.
Osifo said Nigeria must go beyond recovering lost production and focus on unlocking new reserves, attracting fresh capital and sustainably increasing crude oil and gas output.
He called for stronger collaboration among government, regulators, operators and labour, saying sustainable investment and job creation could only be achieved through predictable policies, accountability and mutual respect.
“Without investment, there will be no project. Without projects, there will be no sustainable jobs. Without production, there will be no revenue. And without fairness and stability, none of these can endure,” he added.
(The Sun)