The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has issued a stern ultimatum to Sterling Oil Exploration and Energy Production Company, threatening a nationwide strike that could cripple Nigeria’s upstream oil and gas operations. The crux of the dispute lies in alleged anti-labor practices by Sterling Oil, including discriminatory treatment against Nigerian workers and a blatant disregard for the country’s expatriate quota system. PENGASSAN alleges that Sterling Oil has employed an excessive number of Indian expatriates, displacing qualified Nigerian professionals and violating the Nigerian Content Development Board Act. The union demands immediate action from Sterling Oil to rectify these issues, failing which it will withdraw its members from all upstream operations.
PENGASSAN’s president, Festus Osifo, articulated the gravity of the situation during a press conference, emphasizing that over 90% of the workforce in the upstream sector are PENGASSAN members. A withdrawal of these workers would effectively shut down the entire upstream segment, significantly impacting Nigeria’s oil and gas production and revenue generation. Osifo pointed out that Sterling Oil’s alleged abuse of the expatriate quota system, by employing 10,699 Indian expatriates across 15 locations, directly contravenes Section 32 of the Nigerian Content Development Board Act. This act aims to prioritize and maximize Nigerian participation in the oil and gas industry, ensuring that skilled Nigerian workers are not sidelined in favor of foreign nationals.
The union’s grievances extend beyond the displacement of Nigerian workers to encompass broader concerns about Sterling Oil’s labor practices. The association accuses the company of fostering a hostile work environment, undermining the rights and well-being of its employees. This includes allegations of discriminatory hiring and promotion practices, unfair treatment, and disregard for established labor laws. PENGASSAN’s picketing of Sterling Oil’s headquarters last week served as a precursor to the more drastic measures now being threatened. The union’s leadership maintains that the firm’s continued defiance of Nigerian labor laws and its disregard for the welfare of its workers necessitate decisive action.
The Nigerian government finds itself in a precarious position, caught between upholding its own laws and regulations and the potential economic fallout of a nationwide strike. PENGASSAN has directly challenged the government to choose sides, emphasizing the potential loss of substantial revenue if the upstream sector is shut down. The union argues that by enforcing the existing laws and compelling Sterling Oil to comply with the expatriate quota system, the government can not only protect the rights of Nigerian workers but also safeguard the nation’s economic interests. Failure to act decisively, PENGASSAN warns, will send a message that foreign companies can operate with impunity, undermining the very principles of the Nigerian Content Development Board Act.
PENGASSAN’s strategy involves progressively escalating pressure on Sterling Oil and the government. The union has already taken steps to disrupt Sterling Oil’s operations by informing its members at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), crucial for lifting operations, about the ongoing dispute. This action has effectively blocked Sterling Oil’s ability to lift and transport its products, putting immediate financial pressure on the company. The union’s next move will be to engage with all relevant stakeholders, including government officials, industry representatives, and labor organizations. This engagement aims to find a resolution that addresses PENGASSAN’s concerns and prevents the need for a full-scale strike.
Should these engagements prove fruitless, PENGASSAN has made it clear that it is prepared to initiate a nationwide strike. The union believes that the complete shutdown of the upstream sector will force both Sterling Oil and the government to take their demands seriously. The potential economic ramifications of such a strike are significant, given Nigeria’s reliance on oil and gas revenue. The government now faces a difficult choice: enforce its own laws and risk a short-term economic disruption or appease Sterling Oil and risk a long-term erosion of worker rights and national interests. The ultimate outcome hinges on the willingness of all parties to engage in constructive dialogue and find a solution that respects both labor rights and the economic realities of the Nigerian oil and gas industry.
