PENGASSAN Warns Frequent Alterations to PIA May Erode Investors' Confidence
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed concerns about frequent alterations to the Petroleum Industry Act (PIA), which may erode investors' confidence in the country's oil and gas industry.
PENGASSAN President, Festus Osifo, stated that the capital-intensive nature of the industry requires caution when tinkering with laws governing it. He added that rather than instilling confidence or promoting stability, frequent alterations 'amplify uncertainty and disruption' in the sector.
The PIA was passed in 2021 by the National Assembly and signed into law on August 16, 2021. Osifo lamented that five years into its implementation, considerable alterations have been made to the framework, including the removal of some fiscal provisions and their movement to the Nigeria Revenue Act.
PENGASSAN urged the government to implement policies supporting local refining of petroleum products, expansion of Liquefied Natural Gas (LNG), and Compressed Natural Gas (CNG). Osifo emphasized that workers' welfare and interests should be protected, and that the use of executive orders to amend provisions of the petroleum law is 'appalling.'
TotalEnergies Country Chair and Managing Director, Mr. Matthieu Bouyer, added that Nigeria's oil and gas industry must move beyond potential and convert ongoing reforms into concrete projects, production growth, and long-term value for the country.