The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for the establishment of a salary benchmark for oil and gas workers in Nigeria. This call was made by Mr. Festus Osifo, the National President of PENGASSAN, during the second edition of the PENGASSAN Energy and Labour Summit held in Abuja.
The theme of the three-day event was “Petroleum Downstream Deregulation and Gas Utilization for a Sustainable Energy Future in Nigeria.” Osifo stressed the importance of a salary benchmark due to recent policy changes by the Federal Government, including the removal of the Petroleum Motor Spirit (PMS) subsidy and the floating of the naira-dollar exchange rate.
He pointed out that the floating of the naira had primarily benefited the government and oil and gas companies in Nigeria. To protect the interests of oil and gas workers amid currency fluctuations, Osifo referred to the benchmarking of workers’ salaries in dollars in Angola, where they are paid in the local currency equivalent. He cited this as an example of how a salary benchmark could help safeguard workers’ earnings.
Osifo emphasized the need for innovative solutions to restore financial losses to workers while ensuring a fair and equitable environment for all stakeholders. He expressed PENGASSAN’s commitment to advocating for just and equitable distribution of benefits across its branches.
In addition to discussing the salary benchmark, the summit addressed various challenges and opportunities in the energy sector. Osifo highlighted the changing landscape of Nigeria’s energy sector, including the divestment actions of major oil companies. He emphasized the importance of engaging in enlightening discussions, sharing insights, and formulating strategies to address critical issues facing the industry, such as divestment and the removal of PMS subsidies.
On the positive side, Mr. Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation Limited (NNPC), noted that despite challenges, the country had begun to see some positive outcomes from the removal of fuel subsidies. He mentioned that construction companies were returning to project sites as more resources became available for project execution.
Kyari also expressed optimism that by 2024, Nigeria would become a net exporter of refined petroleum products, thanks to ongoing policy interventions. He highlighted the benefits of local refining, including job creation, increased tax revenues, and the creation of wealth in the country. Kyari emphasized the need for Nigeria to adjust its energy realities as it currently imports 100% of its petroleum products.