 has warned that frequent policy changes in the oil){kind=link}
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has cautioned the Federal Government that frequent policy changes and amendments in the oil and gas sector may discourage both local and foreign investors.
Speaking at the opening session of the 4th PENGASSAN Energy and Labour Summit (PEALS) in Abuja, the association’s President, Festus Osifo, said the latest amendments to the Petroleum Industry Act (PIA) have unsettled key stakeholders and created uncertainty in the investment climate.
“Policy somersault and frequent changes to laws do not aid stability. At best, it is a disincentive to investment,” Osifo stated before an audience of industry experts, labour leaders, and government officials.
The PIA, passed in 2021 after decades of delay, was hailed as a game-changer to reposition Nigeria’s petroleum industry.
However, amendments made barely four years after its passage have raised questions about the government’s long-term commitment to stable regulation.
Osifo warned that inconsistency in policy direction could undermine Nigeria’s competitiveness in the global oil and gas market.
“Investors thrive on predictability. The moment laws are altered without wide consultation, it signals uncertainty, and investors naturally take a step back,” he said.
The PENGASSAN President also raised concerns over unsafe practices in some oil fields and installations, where cost-cutting measures have endangered workers’ lives.
Citing disturbing cases where ropes were used to offload materials instead of cranes, Osifo stressed that “the true measure of stewardship is ensuring every worker returns home safely.”
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, urged operators to adopt global Health, Safety, and Environment (HSE) standards as well as Environmental, Social, and Governance (ESG) principles to restore investor confidence.
“With more investment comes the capacity to upgrade infrastructure, adopt advanced technologies, and expand production.
Strong HSE and ESG practices are not just about compliance—they are now prerequisites for accessing global capital,” Lokpobiri said.
Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, reinforced the importance of policy consistency and ESG compliance.
He revealed that NNPC is embedding a Zero Harm culture through its Energy Transition Roadmap, which focuses on reducing carbon emissions, unlocking stranded assets, and scaling up gas development as Nigeria’s transition fuel.
“Every barrel counts. Every molecule of gas counts. Incremental production will not come from one big move, but from many smart, coordinated actions across the value chain,” Ojulari said, adding that the PIA framework must remain stable to de-risk investments.
Minister of Labour and Employment, Muhammadu Dingyadi, assured workers that the government is committed to ensuring decent wages, workplace safety, and skill development for energy workers.
He emphasized that safety lapses are too costly to ignore.
“We all know that health and safety are non-negotiable pillars of any resilient energy system. The cost of negligence is far greater than the investment in prevention,” Dingyadi said.
Nigeria, Africa’s largest oil producer, continues to face challenges including fluctuating crude oil prices, rising environmental expectations, oil theft, and infrastructure gaps.
Industry experts argue that stable regulation, improved safety standards, and a strong ESG framework will determine whether the country can attract the billions of dollars needed to revive exploration and boost production.
PENGASSAN insists that government and operators must align their strategies to protect lives, restore investor trust, and drive sustainable growth in the oil and gas sector.