Regulatory uncertainty and overlapping mandates among government agencies have been identified as possible investments in Nigeria’s oil and gas industry.

The president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, expressed the view 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.

He identified the Petroleum Industry Act (PIA) 2021 as a major milestone in the effort to reform the industry, but noted that 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.

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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 instill 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.

Persistent weaknesses in offshore crude production which left output below the level on which the 2026 federal budget was set out, has brought Nigeria’s fiscal position under pressure despite a strong rally in international oil prices.

MoneyAfrica shed light on this in its newsletter on Monday, asserting that Nigeria produced an average of 1.505 million barrels per day of crude oil in July, which industry figures aver is marginally above her Organisation of the Petroleum Exporting Countries (OPEC) production quota of 1.50 million bpd for the third consecutive month.

However, July output was 4 percent lower than in June, reflecting technical disruptions at some offshore oil fields.

MoneyAfrica said while the performance signals an improvement from the severe production losses Nigeria experienced in previous years, it remains insufficient to meet the government’s revenue plans.

When condensates are included, total liquids production averaged 1.67 million bpd in July, well below the 1.84 million bpd benchmark used in the 2026 budget.

The volume gap has remained a central risk to public finances throughout the year, constraining the amount of oil available for export and limiting the government’s capacity to convert stronger global prices into a material revenue windfall.

Crude prices have, nonetheless, provided an important cushion. Escalating tensions in the Middle East have supported global oil markets, pushing Nigeria’s realised crude prices to around 29 percent above the budget benchmark of $64.85 per barrel.

“This suggests gross oil revenue during the first half of the year may have exceeded the budgeted level in nominal terms, even with production running below target.

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Yet the higher-price environment has primarily neutralised the effect of lower export volumes instead of creating meaningful additional fiscal headroom.

Nigeria is therefore still exposed to a reversal in global prices, while its production base remains vulnerable to operational disruptions, infrastructure constraints and delayed investment”, the newsletter read.

The challenge is reflected in the government’s reported $2.49 billion oil-revenue shortfall in the first half of 2026. That underperformance, MoneyAfrica, said, feeds directly into the fiscal deficit and could increase the government’s financing needs, placing further pressure on domestic borrowing costs and public debt metrics.

The administration has intensified efforts to attract investment into oil and gas, particularly deep-offshore projects that could help rebuild output over the medium term.

Measures include tax incentives intended to improve project economics, unlock capital and shorten the path to final investment decisions.

The government has set an ambition to raise production towards 3 million bpd, but the scale of capital expenditure, technical work and infrastructure improvements required means the target is unlikely to be achieved quickly.

MoneyAfrica said, “For now, Nigeria is producing enough crude to comply with its OPEC quota, but not enough to deliver the oil volumes embedded in its own budget. Until offshore operations are stabilised and new investment translates into sustained barrels, higher crude prices will offer only a temporary buffer rather than a durable solution to the country’s fiscal vulnerability”.

Afrobeats star, David Adeleke, popularly known as Davido, has refused to apologise to Edo State Governor, Monday Okpebholo, over his social media post displaying the governor’s alleged West African Examinations Council result.

Davido insisted that he did nothing wrong by sharing the result, saying he was only informing people in Edo State about the academic record of their governor.

The singer made this known in an exclusive interview with News Central on Tuesday in Osun State.

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He said, “I’m not going to apologise. I didn’t do anything wrong. I was just telling people of the state the results their governor has.”

The controversy followed comments by Okpebholo during political activities ahead of the August 15 Osun State governorship election.The Edo governor had mocked Osun State Governor, Ademola Adeleke, over his penchant for dancing while campaigning for the All Progressives Congress governorship candidate, Bola Oyebamiji, popularly known as AMBO.

Okpebholo had said, “Before somebody signs paper, he will dance. Are you not tired? For four years, this man has been dancing. Before he takes breakfast, before he drinks tea, he will dance.”

Davido, who is Adeleke’s nephew and actively campaigned for his uncle, subsequently shared what appeared to be Okpebholo’s WAEC result on his Instagram Story on Friday.

The post, which had no caption, sparked reactions on social media, with Tugbiyele later describing it as inappropriate and disrespectful.

Responding to calls for an apology, Davido defended his action and accused Okpebholo of leaving Edo State to attack his uncle in Osun.

He said, **“Yes, and you came, you left your state, you came to another state. You came in and then started talking that my uncle is a dancer; he is not serious.

“The road to your Government House is not done. My uncle is not serious. First of all, you were not even elected; you were selected.”**
The singer further questioned Okpebholo’s understanding of electoral victory, saying,

“You don’t know what it means to win an election. That’s why you could go there and talk.”

Davido also criticised the governor over his comments about Adeleke and expressed sympathy for Okpebholo’s children.

He said, “I feel so bad for his kids. Because you see what my dad is doing. Do you understand? Yeah, you’re abusing a sitting governor in his own state.”

The singer also mocked Okpebholo over his reported stay in a hotel and warned that Adeleke would respond politically when the time came.

Davido said, “In fact, finish your three years, we’ll visit you when it’s time for you to get re-elected.”

Earlier, Tugbiyele had called on Davido to apologise to Okpebholo, arguing that the singer should not have personally responded to the Edo governor’s comments about Adeleke.

Tugbiyele said, “I watched a video when Governor Okpebholo called the governor of my state, Adeleke, the dancing governor. And the governor’s relation, David Adeleke, replied by publishing the WAEC Secondary School leaving result of Governor Okpebholo, the governor of Edo State.”

He acknowledged that the alleged result might not have been impressive but said it was inappropriate to use it to ridicule the governor.

He said, “The result is not good enough, but it’s possible. The governor did a resit. We are not aware of that, but I think Davido, David Adeleke’s publication is inappropriate.”

Tugbiyele concluded with a direct appeal to the singer, saying, “Davido, David Adeleke, please, as a proper Yoruba, please apologise to Governor Okpebholo. God bless you, David. God bless Nigeria.”