...Seeks regulatory stability, faster approvals, protection of workers, domestic refineries
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on President Bola Tinubu to forward his recent Executive Orders on the oil and gas industry to the National Assembly for consideration as an Executive Bill to amend the Petroleum Industry Act (PIA).
The union also demanded that stakeholders in the petroleum industry be carried along in the process, warning that policy uncertainty and abrupt regulatory changes could undermine investor confidence and frustrate efforts to attract the capital required to grow the sector.
PENGASSAN made the demands in a communiqué issued on Friday at the end of its 3-day 5th PENGASSAN Energy and Labour Summit (PEALS) themed “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry.”
The summit brought together government officials, regulators, operators, investors, organised labour and other industry stakeholders.
The union acknowledged the PIA 2021 as a major milestone in petroleum sector reform but said the existence of laws alone could not guarantee investment without predictable and consistent implementation.
The communique partly reads: “The long-term capital required for oil and gas development depends not only on the existence of laws and regulations, but on their predictability, durability, transparency and consistent application.”
PENGASSAN consequently urged government and regulatory institutions to minimise abrupt policy changes and ensure adequate stakeholder consultation before introducing major changes to the industry.
In the communique signed by PENGASSAN President, Comrade Festus Osifo and General Secretary, Jerry Amah, the union also called for smarter regulation, greater use of technology and improved coordination among regulatory agencies to eliminate overlapping mandates, repetitive approvals and conflicting directives.
According to the union, regulation must protect the national interest, workers, communities, investors, safety and the environment while also creating an enabling environment for legitimate businesses to operate efficiently.
It therefore urged regulators to be “firm, fair, and fast” in the discharge of their responsibilities, with clear requirements, faster approvals and consistent decision-making.
PENGASSAN further demanded that regulatory performance be measured by results achieved in the industry rather than by the number of regulations, licences or approvals issued.
It said Nigeria was competing with other oil-producing countries for limited global capital and could no longer rely on its huge hydrocarbon reserves alone to attract investors.
“The country must offer competitive fiscal and commercial terms, security, predictable regulation and efficient project execution.”
On gas, PENGASSAN said Nigeria’s over 215 trillion cubic feet of proven reserves must be urgently converted into reliable energy, industrial growth and economic prosperity.
It called for an integrated approach to gas development covering production, processing, pipelines, storage, LNG, LPG and CNG infrastructure, while urging greater use of gas for power generation, manufacturing, transportation, fertiliser, petrochemicals and domestic cooking.
The union also demanded sustained policies to expand domestic refining and reduce Nigeria’s dependence on imported petroleum products. It specifically stressed the need to protect local refineries, including the Dangote and Waltersmith refineries, within Nigeria’s jurisdiction.
“Nigeria must progressively retain more value from its petroleum resources through domestic refining, petrochemicals, gas processing and other value-adding activities capable of generating employment, conserving foreign exchange and stimulating industrial growth,” it stated.
On labour, PENGASSAN warned that workers’ rights must be protected during mergers, acquisitions, divestments and asset transfer, as it maintained that capital and labour were complementary rather than competing interests, stressing that sustainable investment required skilled, motivated and fairly treated workers.
“Industrial harmony means more than the absence of strikes. It requires justice, mutual respect, effective communication, responsible engagement, fair labour practices and shared prosperity.”
It also declared that occupational health and safety remained non-negotiable, warning that increased production must never be achieved at the expense of workers’ lives and wellbeing.
PENGASSAN further called for stronger enforcement of Nigerian Content and expatriate quota requirements, insisting that foreign expertise should be deployed mainly where genuine skills gaps existed and should be accompanied by knowledge transfer, understudy arrangements and succession plans for qualified Nigerians.
The union urged government, operators, regulators and host communities to sustain collaboration to consolidate recent gains in the fight against crude oil theft and pipeline vandalism.
It also called for effective implementation of the Host Communities Development Trust framework under the PIA.
The summit urged government to prioritise execution, saying Nigeria already had the resources, laws, institutions and human capacity required to develop the petroleum industry.
“The critical challenge is the ability to convert these advantages into bankable projects and measurable outcomes.
“Policies must translate into implementation; resources into projects; projects into production; production into value; and investment into sustainable jobs and national prosperity.”
The union also urged PTDF, universities, technical colleges and industry stakeholders to strengthen partnerships on practical training, research, apprenticeships and emerging energy skills.
PENGASSAN said the strength of Nigeria’s oil and gas industry should ultimately be measured not by the resources beneath the ground, but by the projects delivered, value created, Nigerian capabilities developed, decent jobs sustained and prosperity generated for Nigerians.
“The opportunity is enormous. The responsibility is shared. Execution must now be the priority,” it declared.
