The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) recently confirmed that the Port Harcourt refinery, boasting a production capacity of 60,000 barrels per day, is operational and currently producing refined petroleum products such as diesel, kerosene, and petrol. This announcement was made by PENGASSAN National President Festus Osifo during the association’s National Executive Council meeting held in Abuja. Osifo noted that despite the refinery’s reopening, it would not lead to a reduction in petrol prices, highlighting ongoing concerns about the refinery’s operational status. There has been considerable debate surrounding the refinery’s rehabilitation and subsequent production commencement, with many stakeholders closely monitoring the developments.
Osifo provided further clarity after receiving feedback from PENGASSAN members at the refinery, emphasizing that while the facility is operational, it requires additional maintenance to optimize its functionality. The association, in partnership with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), is active on the steering committee overseeing the facility’s operations. Osifo pointed out that the relationship between local currency value and fuel prices is a foundational issue, asserting that the current foreign exchange rates—specifically the naira’s value against the dollar—play a crucial role in determining the prices of refined products. He stated unequivocally, “The confirmation I have today is that the refinery is working,” along with an affirmation that the facility is indeed producing Premium Motor Spirit (PMS), or petrol, essential for public consumption.
While the functional status of the refinery brings hope for job enhancement and economic growth, Osifo confirmed that it would not alleviate the high costs of petrol, diesel, and kerosene in the market. He reiterated that the principal challenge facing the sector is the weakness of the naira, which trades at 1 dollar to N1,700. This significant currency devaluation has directly impacted the cost of products, leading to higher prices in the marketplace. Osifo’s address underscored the importance of addressing the currency’s volatility to mitigate economic pressures resulting from rising fuel prices. He pointed out that while the return of the refinery to operation is promising, it does not guarantee immediate or foreseeable relief in petrol pricing for consumers.
In addition to discussing the operations of the refinery, Osifo addressed the urgent issue of employment practices within the oil and gas sector, particularly regarding the predominance of expatriate workers over qualified Nigerians. He expressed concern about the increasing tendency of oil companies to hire foreign workers, mainly from India, which contradicts local content regulations aimed at increasing Nigerian employment in the industry to 70% by 2027. The association’s president highlighted that the overreliance on foreign labor not only violates established regulations but also engenders feelings of exclusion and unrest among Nigerian workers, who are often sidelined in a field where they possess the requisite skills and qualifications.
Osifo’s remarks indicate a growing frustration with the oil companies’ hiring practices, as many Nigerians feel discriminated against in favor of expatriates. He passionately advocated that while some skilled foreign workers can contribute to the industry, the current trend merits critical attention. Highlighting accountability, he openly called out specific companies such as Indorama for their staffing practices, stating that previous confrontations with companies had resulted in remedies. PENGASSAN has been vocal in its desire to rectify the disproportionate hiring practices by advocating for the inclusion of more Nigerian talent in the workforce.
Through the combined lens of refinery operations and workforce issues, PENGASSAN’s dialogue emphasizes broader concerns regarding economic sustainability and employment equity within Nigeria’s oil and gas sector. The organization aims to not only ensure that the Port Harcourt refinery functions optimally but also fosters an inclusive job market that prioritizes local talent. In light of these developments, the association’s leaders remain committed to confronting the deep-seated challenges facing Nigeria’s oil industry, emphasizing a collaborative approach with related unions and stakeholders to address overarching issues that affect both industry performance and job creation for Nigerians.
