The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has described claims of a 30 per cent deduction from oil revenue as misleading.
Speaking on Arise TV, Osifo said the 30 per cent does not apply to gross revenue earned by the Nigerian National Petroleum Company Limited (NNPC Ltd) under Production Sharing Contracts (PSCs).
According to him, royalties, taxes and cost recovery are first deducted before arriving at profit oil or profit gas — from which the 30 per cent is then taken.
In effect, that deduction is about two per cent of total PSC revenue,” he said.
Osifo warned that removing the funds could affect NNPC’s ability to meet salary and operational obligations, and cautioned that regulatory uncertainty may weaken investor confidence.
He also urged President Bola Tinubu to review the Petroleum Industry Act (PIA) through the National Assembly rather than by executive order.
