Foreigners taking over jobs in oil and gas sector — PENGASSAN
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed concerns over the high number of expatriates in Nigeria’s oil and gas industry, warning that it poses a significant threat to the long-term impact on national development.
The President of PENGASSAN, Festus Osifo, made this statement at the National Executive Council (NEC) Meeting of the Association in Abuja on Tuesday.
While acknowledging that skilled foreign workers contribute to economic development, Osifo stressed that the current rate of expatriate employment requires urgent attention. He pointed out that the heavy reliance on expatriates strains the economy through salaries, remittances, and other related expenses.
Osifo also raised concerns about the possible abuse of quotas for expatriate employment, noting that this issue could hinder long-term national development. He added that the heavy presence of foreign workers in the sector could also create social unrest and resentment among Nigerians who feel excluded from job opportunities within the industry. “We demand strengthening our regulatory mechanisms and enforcing the regulations to promote local content and ensure transparency and accountability,” he said.
“We must work towards ensuring the fair sharing of our natural resources for the benefit of all Nigerians,” Osifo continued. “We are holding accountable government institutions like the NCDMB and the Ministry of Interior, who are responsible for issuing permits for these expatriates. If you visit some of these companies, even the vulcanisers and operators are from India. So, arising from this negativity, we have resolved that we will do everything possible to hold these institutions to account.”
Osifo argued that reducing the number of expatriates would encourage the management of these companies to open up job opportunities for more Nigerians. He lamented the weakness of local institutions, comparing Nigeria’s situation unfavourably with Angola, where government institutions—not trade unions—are responsible for ensuring fair employment practices.
He also commended the leadership of the Nigerian National Petroleum Company Limited (NNPCL) for the successful rehabilitation and restart of the old Port Harcourt refinery. However, Osifo stressed the importance of achieving similar success with the Warri and Kaduna refineries.
“For years, PENGASSAN has been at the forefront of advocating for the rehabilitation of these refineries, and we will continue this fight until the remaining three refineries are fully rehabilitated and back in operation,” he said. “Once that is accomplished, we will push for the privatisation of these refineries, using the NLNG model, which has proven to be effective in ensuring efficient management of such facilities.”
Under the NLNG model, Osifo explained, three private companies—Shell, Total Energy, and ENI—own 51 percent of the shares, while the government retains 49 percent. This structure allows the company to operate as a private entity, while still maintaining government oversight.
He further cautioned against handing over the refineries to friends or political associates, stressing that any potential investors must have expertise in the oil and gas sector and a genuine understanding of refinery operations.
“NLNG has proven to be successful, reporting dividends year after year and contributing significantly to the Federation Account,” Osifo concluded. “This model works. With the government owning 49 percent, it has enough influence to ensure national energy security and protect national interests, without having a controlling stake.”
