Paragraph 1: The Call for Reform and the NLNG Model
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has issued a clarion call for urgent and comprehensive reforms within Nigeria’s ailing refinery sector. Central to their argument is the need to emulate the successful model of the Nigeria Liquefied Natural Gas (NLNG) company, advocating for a shift away from predominant government control. PENGASSAN President, Mr. Festus Osifo, emphasized the importance of private sector involvement, proposing a structure where competent private operators hold a majority stake (51%) while the government retains a minority share (49%). This, they argue, would inject much-needed efficiency and expertise into the refinery operations, breaking free from the cycle of political interference, mismanagement, and persistent breakdowns that have plagued the sector for years.
Paragraph 2: The Spectre of Underutilized Resources and the Need for Reinvestment
Beyond refinery reforms, PENGASSAN also highlighted the precarious situation of Nigeria’s vast crude oil reserves, estimated at 37 billion barrels. Despite this immense potential, production levels hover around two million barrels per day, a figure that PENGASSAN deems far below the nation’s capacity. The association urged the government to prioritize exploration and drilling activities to maximize production and capitalize on global energy demands. Furthermore, PENGASSAN emphasized the critical need for reinvesting oil revenues into crucial sectors such as infrastructure development, education, and healthcare. This strategic reinvestment, they argue, is vital for diversifying the Nigerian economy and reducing reliance on oil revenue, mirroring the successful model implemented by Dubai, which leveraged Abu Dhabi’s oil wealth for transformative development.
Paragraph 3: Transparency in Marginal Field Bid Rounds and Concerns over Anti-Labour Practices
While advocating for reforms, PENGASSAN also commended the recent marginal field bid round, lauding it as the most transparent process in Nigeria’s history. This stands in stark contrast to previous allocations often marred by political influence and cronyism, which, according to PENGASSAN, hampered development due to the appointment of incompetent operators. However, despite this positive development, PENGASSAN also expressed grave concerns about alleged anti-labour practices within the sector. They specifically called out 11PLC for reportedly coercing workers into signing agreements that restrict union membership, a practice viewed as a direct attack on workers’ rights. PENGASSAN vowed to resist any attempts to suppress these fundamental rights and pledged to protect the interests of its members.
Paragraph 4: Human Capacity Development: The Foundation for Sustainable Growth
Echoing the call for long-term sector development, Mr. Felix Ogba, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), underscored the importance of human capacity development as the cornerstone of a sustainable and thriving oil and gas industry. Ogba argued that while reserves and infrastructure are crucial, equipping Nigerians with the necessary technical skills is paramount. He highlighted the critical need for expertise in engineering, safety protocols, automation, and emerging digital technologies. These specialized skills, according to Ogba, are essential for navigating the evolving landscape of the energy sector and ensuring Nigeria’s competitiveness in the global market.
Paragraph 5: Investing in Training, Research, and Skill Transfer
To bolster human capacity, Ogba emphasized NCDMB’s ongoing investments in training programs, research initiatives, and technical innovation within the sector. He stressed the importance of mandatory skill transfer components within every major oil and gas project, ensuring knowledge dissemination and the development of local expertise. This commitment to local content development, according to Ogba, is essential for creating a self-reliant and sustainable industry that benefits Nigerian citizens. Furthermore, he advocated for prioritizing STEM education (Science, Technology, Engineering, and Mathematics) and vocational training to equip future generations with the tools needed to thrive in the ever-evolving energy sector.
Paragraph 6: Collaboration and the Long-Term Vision for Nigeria’s Oil and Gas Sector
Finally, both PENGASSAN and the NCDMB emphasized the critical importance of collaboration between government, industry players, and labour unions to achieve a shared vision for the future of Nigeria’s oil and gas sector. This collaborative approach, they argue, is crucial for navigating the complex challenges and opportunities presented by the global energy transition and the increasing adoption of automation technologies. By fostering open dialogue and working together, Nigeria can build a resilient, efficient, and sustainable oil and gas industry that contributes to the nation’s economic growth and prosperity for generations to come. Ogba succinctly captured this vision by declaring that “human capacity is the true oil that will sustain Nigeria’s industry for generations.” This statement underscores the belief that investing in people is the most valuable investment Nigeria can make to secure a brighter future for its oil and gas sector.
