– Tasks FG on local fuel refining, PIA implementation
Mkpoikana Udoma
Port Harcourt — The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has raised the alarm over the abuse of labour laws by indigenous oil and gas companies in the country.
President of PENGASSAN, Comrade Festus Osifo, regretted that indigenous oil firms flout labour laws by denying their employees from belonging to any union, warning that if the disenfranchisement was overlooked, it will snowball into an industrial crisis in the oil and gas sector.
Osifo speaking at PENGASSAN National Executive Council meeting in Port Harcourt, noted that indigenous oil and gas companies play a pivotal role in the growth of Nigeria’s economy, yet exploit labour laws and treat their employees inhumanely.
He said, “One issue that has been overlooked and which will soon snowball into an industrial crisis in the sector is the abuse of the Nigerian labour laws on membership by indigenous oil and gas companies. It is disheartening to witness the exploitation of labour laws and the inhumane treatment of employees by some of these companies.
“One of the major concerns is that some of these companies are preventing qualified members from registering to join the Association as provided in the labour law and in the Nigeria constitution. This deprivation of membership rights is not only a violation of their fundamental human rights as enshrined in all laws and statuses to which the country is a signatory to, but also prevent entrenching a better working condition and protection of the workforce. A more decisive action will soon be taking against such managements to serve as a deterrent to others.”
He said collective bargaining agreements were being negotiated in various PENGASSAN branches, noting that aggressive efforts have been made in unionizing more branches and increase its rank.
On fuel subsidy and high cost of petroleum products in the country, Osifo said one of the main factors contributing to the ongoing challenge was the nation’s heavy reliance on imported refined petroleum products and called for increased local refining capacity in the country.
“I firmly believe that it is high time for the federal government to take decisive action and encourage local refining of crude oil. By doing so, we can significantly bring down the high cost of petroleum products and alleviate the financial burden on our citizens.
“Local refining would enhance national security. By reducing our dependence on imported petroleum products, we would be less vulnerable to supply disruptions or political tensions in other countries. This would strengthen our energy security and ensure the stability of our economy.
“PENGASSAN therefore demand for the umpteenth time, that the federal government of Nigeria should take bold steps to encourage local refining of crude oil. It is time for us to unlock our potential and seize control of our energy future. The ongoing rehabilitation of the existing refineries must be sustained even as we await the contribution of Dangote refinery and other licensed Modular Refineries into the market.”
The PENGASSAN boss further expressed worries over the non-implementation of the Petroleum Industry Act by oil and gas firms, lamenting that most companies were yet to remit the statutory 3pe cent operational cost of the companies to their host communities.
“It is quite worrisome that the implementation of the provisions in the PIA regarding host communities hasn’t been fully implemented. Most companies have not started remitting 3percent of the previous years’ operating expenditure to the fund as mandated by the law.
“PENGASSAN is hereby calling on all relevant stakeholders to see to the full implementation of this provision as it will go a long way in addressing myriad of issues plaguing the Oil and Gas Host Communities.”
