PENGASSAN Warns Against Job Losses In Oil, Gas Divestment

…says workers not commodities, queries frequent alterations to PIA

The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Osifo, has warned oil and gas companies against treating workers as disposable commodities in the wake of acquisitions, divestments and other major changes in the industry.

Osifo, who spoke at the 5th PENGASSAN Energy and Labour Summit (PELS) 2026, also called for urgent reforms to Nigeria’s regulatory framework to restore investor confidence, attract fresh capital and boost oil and gas production.

He said workers’ jobs, pensions, collective bargaining agreements and other established rights must be protected whenever oil and gas assets change ownership.

The summit, themed “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” brought together labour leaders, government officials, regulators, operators, investors and other industry stakeholders to deliberate on the future of the sector.

Osifo said the theme was deliberately chosen because Nigeria’s oil and gas industry required a predictable, transparent, efficient and fair regulatory environment to unlock investment and protect workers.

He said: “Licencing and assets may change hands, but workers are not commodities to be discarded at will. When major acquisitions and divestments occur, jobs, pensions, collective bargaining agreements and other established rights of workers must be protected.”

Osifo stressed that worker protection must remain part of the architecture of industry stability, warning that the pursuit of investment and increased production must not come at the expense of workers’ safety and welfare.

“Regulation should never become an obstacle to investment, but investment should never become an excuse for weak standards. There
must be a balance.”

The PENGASSAN president also raised concerns over what he described as the misuse of expatriate quotas in the industry, insisting that foreign expertise should only be deployed where genuine skills gaps exist.

He said Nigeria could not afford a situation where qualified Nigerians were displaced by foreign personnel in jobs for which local capacity was available.

“Nigeria welcomes foreign expertise where a genuine skill gap exists. Our industry has benefited tremendously from international technology, investment and knowledge.

“However, expatriate quota must never become a mechanism for replacing qualified Nigerians with foreign personnel in jobs for which local capacity exists.”

He urged regulators and operators to ensure that expatriate positions were justified, monitored and linked to measurable knowledge transfer and succession plans.

“Every expatriate engaged should ultimately leave behind greater Nigerian capacity. We cannot preach local content in procurement while neglecting local content in employment and human capital development,” he added.

Osifo also expressed concern over changes to the regulatory framework established by the Petroleum Industry Act (PIA), saying alterations to the law could undermine investor confidence.

He noted that five years after the enactment of the PIA in 2021, some fiscal provisions had been removed and moved to the Nigeria Revenue Act, while an executive order had also been used to amend provisions of the law.

“These do not instil confidence or promote stability. Instead, they amplify uncertainty and disruption.”

According to him, the issue was not necessarily the number of institutions regulating the sector but the efficiency and clarity of their mandates.

He warned that overlapping responsibilities among regulators could subject operators to repetitive approvals, multiple inspections and conflicting directives.

“Investors need clear rules. Operators need predictability. Workers need protection. Host communities need confidence. Governments need sustainable revenues. Nigerians need an industry that translates our enormous hydrocarbon resources into economic prosperity.”

Osifo therefore called for smarter regulations that recognise commercial realities, embrace technology and eliminate unnecessary duplication.

“What we require is not weak regulations. What we need is smarter regulations. Regulations that understand commercial realities, embrace technology and eliminate unnecessary duplication.”

The labour leader also demanded stricter enforcement of health and safety, environmental protection, local content and labour standards in the industry.

He said regulatory reforms would have little impact if enforcement remained weak, saying, “Good regulations on paper cannot transform an industry without enforcement.

“Health and safety, environmental protection, local content, good labour practices and operational integrity must be consistently enforced.

“The life of a Nigerian worker must never become the price we pay for increased production. Every worker who leaves home desires to return safely to his or her family.”

He said Nigeria must also accelerate domestic refining, gas processing and the expansion of LPG, CNG and LNG infrastructure to translate the country’s vast hydrocarbon resources into economic value.

“Our gas resources present enormous opportunities for power generation, petrochemicals, fertilisers, transportation and industrialisation. But resources beneath the ground create little value until investments are made to make them usable,” he said.

Osifo acknowledged recent improvements in oil production and renewed investment activities but said Nigeria must go beyond recovering lost production.

“Nigeria should not merely recover lost production. We must unlock new reserves, attract fresh capital and sustainably increase crude oil and gas production.”

The PENGASSAN president further called for stronger collaboration among government, regulators, employers and labour, stressing that sustainable industrial growth could not be achieved by any stakeholder acting alone.

“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 urged employers to recognise workers as a critical component of industry productivity, innovation and sustainability as he added that industrial peace should not merely mean the absence of strikes and disputes, but should be built on justice, mutual respect, effective communication, responsible engagement and shared prosperity.

“Where workers feel valued, business benefits. Where employers are treated fairly, productivity improves. Where regulators are consistent and transparent, investment becomes more sustainable. And where government, labour and industry work together, the entire nation benefits.”

Osifo also highlighted the interventions of the PENGASSAN Foundation, which, he said, had built and renovated schools, paid hospital bills for more than 100 Nigerians unable to settle their medical expenses, provided transformers to communities and supported vulnerable Nigerians, including persons living with disabilities.

The 2026 summit also marked a significant moment in Osifo’s tenure as PENGASSAN president, as he announced that it would be his final PELS address as president.

Reflecting on the evolution of the summit, Osifo said PELS had grown from an initiative conceived five years ago into an important platform for engagement between labour, government, regulators, operators and investors.

“This fifth edition of the PENGASSAN carries special significance for me. At the conclusion of this Summit on the 22nd of August, our Association will proceed to the National Delegate Conference. Consequently, this will be the last PELS at which I will have the privilege of addressing you as the President of PENGASSAN.”

“As I welcome you to PELS for the final time as PENGASSAN’s President, I do so with gratitude for how far we have come and with confidence in the future. PENGASSAN will continue the pursuit of a stronger, fairer, and more prosperous Nigerian oil and gas industry,” Osifo said.