The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) warned that regulatory uncertainty threatens fresh oil and gas investment [1].
This warning comes as the union highlights systemic inefficiencies that could slow production growth in one of Africa's largest energy producers. If investor confidence continues to erode, the national economy may face reduced revenue from its primary export sector [2].
Comrade Festus Osifo, president of PENGASSAN, said frequent alterations to Nigeria's petroleum regulatory framework are undermining investor confidence and threatening the long-term growth of the oil and gas industry [2].
The union pointed to several structural issues hindering the sector. These include overlapping mandates among various government agencies and protracted approval timelines for new projects [1]. According to PENGASSAN, these bureaucratic hurdles create an environment of instability for international and domestic firms [2].
In a statement released in June 2026, the union said regulatory uncertainty, overlapping mandates, and lengthy approval processes could undermine fresh investment and slow production growth in Nigeria's oil and gas sector [1].
The association argued that for the industry to remain competitive, the government must streamline its regulatory approach. The union said that the current lack of clarity regarding agency roles creates friction that discourages the capital expenditure necessary for maintaining and expanding infrastructure [2].
PENGASSAN continues to advocate for amendments to the Petroleum Industry Act to resolve these ambiguities. The union said that stabilizing the regulatory environment is essential to ensuring the industry can meet national production targets and sustain employment in the energy workforce [2].
“Regulatory uncertainty, overlapping mandates, and lengthy approval processes could undermine fresh investment”
The warnings from PENGASSAN highlight a critical tension between legislative intent and operational reality in Nigeria's energy sector. While the Petroleum Industry Act was designed to modernize the industry, the persistence of overlapping agency mandates suggests a failure in implementation. For global investors, regulatory predictability is often as important as the resource quality itself; continued instability may drive capital toward more stable jurisdictions, potentially leaving Nigerian infrastructure underfunded.
