The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade (Engr) Festus Osifo, addressed the National Executive Council (NEC) meeting in Abuja on December 3, 2024. In his remarks, he highlighted the achievements, challenges, and strategic initiatives undertaken by the association throughout the year, while also charting a course for future actions in the energy sector.
Reflecting on the year’s developments, Osifo noted the lingering effects of the Petroleum Industry Act (PIA) on Nigeria’s energy sector, emphasizing the importance of collaboration and strategic planning. He expressed gratitude to PENGASSAN members for their unwavering support, which has underpinned the association’s successes.
The president reported on the divestment activities by international oil and gas companies from Nigeria’s offshore and shallow waters, acknowledging both the opportunities for indigenous companies and the challenges posed to employees. He shared updates on agreements reached with companies such as Nigeria Agip Oil Company, Oando Energy Limited, Mobil Producing Nigeria Unlimited, and Seplat Energy Offshores Limited to protect jobs and collective bargaining agreements. However, he highlighted setbacks, such as the government’s denial of approval for Shell’s divestment to Renaissance Consortium.
Osifo lauded regulatory bodies, including the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and NNPC Limited, for their roles in ensuring agreements were worker-friendly. He emphasized the association’s ongoing efforts to negotiate new collective bargaining agreements, which have resulted in significant salary increments for members in various branches.
The third edition of the PENGASSAN Energy and Labour Summit (PEALS 2024), held in August, was described as a major success. Themed “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft,” the summit provided a platform for knowledge exchange and industry networking. A communique containing critical recommendations from the summit was widely circulated and forwarded to relevant agencies.
Training and capacity building were central to PENGASSAN’s activities in 2024. Osifo detailed the association’s partnerships with institutions such as Lagos Business School and the Niyi Adesanya Annual Leadership Boot Camp, which have equipped members and staff with essential leadership skills. Additionally, over 100 members of the PENGASSAN Women Commission received leadership training, highlighting the association’s commitment to gender inclusion.
The president also addressed the ongoing reorganization of the PENGASSAN Secretariat, aimed at improving efficiency and productivity. Renovations of zonal offices in Port Harcourt and Warri were also noted, with legal action taken to recover misappropriated properties.
An audit of the financial activities of the association’s zones and branches was recently completed, uncovering discrepancies in some branches. Osifo assured members that appropriate actions were being taken to address these issues.
Turning to national and sectoral concerns, Osifo highlighted the critical challenges facing Nigeria’s oil and gas industry, such as expatriate quota abuses, environmental degradation in host communities, and the urgent need for refinery rehabilitation. He called for the implementation of the host community provisions in the PIA to bring stability and development to affected areas.
Osifo commended the progress on the Port Harcourt refinery rehabilitation but stressed the need for similar efforts at other refineries. He advocated for privatization under the NLNG model to ensure operational efficiency. On tax reforms, he urged the government to expand tax relief exemptions for low-income earners and small businesses, while calling for clarity in revenue collection processes from oil and gas companies.
The president warned of a looming food crisis, citing projections that 33.1 million Nigerians could face food insecurity in 2025. He called on the government to support farmers with credit, technology, and improved infrastructure to address this challenge.
Expressing disappointment over Nigeria’s failing power sector, Osifo decried the frequent collapse of the national grid and advocated for decentralized power generation and transmission. He pointed to Abia State as an example of successful private-sector-led initiatives in power provision.
In conclusion, Osifo acknowledged the tragic loss of four PENGASSAN members in a recent helicopter crash in Bonny and extended condolences to their families. He reiterated PENGASSAN’s commitment to advancing the welfare of its members and contributing to Nigeria’s energy sector development.