Tinubu's Policy Reforms Draw Divergent Reactions as Labour Union Warns on Oil Revenue Directive
President Bola Tinubu's recent executive orders on oil revenues and amendments to the Electoral Act have sparked contrasting responses from political stakeholders and industry groups, with PENGASSAN warning of potential job losses in the petroleum sector.
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President Bola Tinubu's recent policy interventions through executive orders and legislative amendments have generated sharply divided reactions across Nigeria's political and economic landscape, with petroleum sector workers expressing concerns over potential employment impacts while political groups debate electoral reform measures.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) issued a cautionary statement regarding the President's executive order on Nigerian National Petroleum Company (NNPC) revenues, warning that the directive could trigger job losses across the oil and gas sector. According to Business Day, the union has raised alarms about the order's potential impact on workforce stability in an industry that remains critical to Nigeria's foreign exchange earnings and fiscal revenue.
The executive order represents Tinubu's latest attempt to restructure the governance framework of Nigeria's petroleum sector, which contributes approximately 90 percent of the country's foreign exchange reserves and accounts for roughly 50 percent of government revenues, according to Central Bank of Nigeria data. PENGASSAN's concerns reflect broader anxieties within the energy sector about policy changes that could affect operational capacity and employment levels at a time when Nigeria is seeking to boost oil production to 2 million barrels per day.
"The Federal Government must carefully consider the downstream effects of this executive order on employment and operational efficiency within the petroleum sector," a PENGASSAN representative stated, as reported by The Nation Newspaper. The union's intervention adds to growing scrutiny of the administration's approach to managing state-owned enterprises and revenue allocation in the energy sector.
Parallel to the oil sector controversy, Tinubu's assent to the Electoral Act (Amendment) Bill 2026 has generated equally polarized responses from political stakeholders. Dr Akinola Awodeyi-Akinsehinwa, an All Progressives Congress (APC) stalwart in Ondo State, praised the President for signing the legislation, describing it as action that "reinforces" democratic processes, according to The Nation Newspaper. The Lagos State chapter of the APC similarly defended the amendments, criticizing what it termed "orchestrated hysteria" by opposition groups.
However, the Peoples Democratic Party (PDP) caretaker committee adopted a more measured stance, acknowledging reservations about the amendments while characterizing electoral reform as "a continuous process that can accommodate other concerns in due course," according to The Nation Newspaper. The PDP's response suggests the opposition party is positioning itself to pursue further modifications to the electoral framework rather than mounting immediate resistance to the current changes.
The Lagos APC emphasized that "governance transcends emotion," directly addressing criticism from opposition quarters regarding the timing and substance of the electoral amendments. This statement reflects the ruling party's effort to frame the reforms as pragmatic governance measures rather than politically motivated interventions ahead of the 2027 general elections.
The dual policy initiatives underscore the Tinubu administration's willingness to pursue structural reforms across multiple sectors simultaneously, despite potential political costs. The Electoral Act amendments affect the operational framework for conducting elections, while the oil revenue directive touches on fiscal federalism and resource management—both sensitive issues in Nigeria's complex political economy.
Industry analysts note that the executive order on NNPC revenues comes as Nigeria grapples with production challenges, including oil theft, pipeline vandalism, and underinvestment in upstream facilities. The country's crude oil output has struggled to reach OPEC quota levels, hovering between 1.4 million and 1.6 million barrels per day in recent months, significantly below installed capacity of approximately 2.5 million barrels per day.
The contrasting reactions to both policy measures highlight the administration's challenge in balancing reform objectives with stakeholder management. While the APC touts the initiatives as necessary governance improvements, labor unions and opposition groups are signaling that implementation details and broader consultation processes remain critical concerns that could affect public reception and long-term sustainability of the reforms.
As the 2027 election cycle approaches, the Electoral Act amendments are likely to face continued scrutiny from civil society organizations, opposition parties, and international observers monitoring Nigeria's democratic processes. Similarly, the petroleum sector executive order will require careful implementation to avoid disrupting operations in an industry already facing significant operational and regulatory challenges.