Oil Union Flags Policy Instability as Key Risk to Industry Growth

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned that persistent policy instability is undermining investor confidence in Nigeria’s oil and gas sector.

Festus Osifo, President of PENGASSAN, voiced this concern at the opening of the 4th Petroleum and Energy Advancement and Leadership Summit (PEALS 2025), held in Abuja. The summit was themed “Building a Resilient Oil and Gas Sector in Nigeria.”

Read Also:

• NNPCL Earns N336bn, Dangote Gets 32% Crude Share
• NUPRC: Africa Requires $600bn Yearly to Meet Energy Demand

Osifo highlighted that frequent and unpredictable amendments to key legislation—particularly the Petroleum Industry Act (PIA)—have created uncertainty for investors. “Amendments are inevitable but must not be haphazard or intermittent. Businesses need stable policies for long-term planning, job protection, and sustainable production,” he said.

Despite these concerns, he commended recent executive orders signed by President Bola Tinubu aimed at boosting oil output, advancing gas development, and streamlining contracting processes, describing them as “steps in the right direction.”

On worker safety, Osifo stressed that “no job is worth a life,” calling for robust safety protocols, continuous training, and transparent reporting across both offshore and onshore operations. He referenced the 2024 helicopter crash near Bonny that claimed the lives of three PENGASSAN members.

Addressing environmental issues, he called for an immediate end to gas flaring, cleanup of polluted sites, and stricter accountability for oil operators. “Nigeria must protect its land, rivers, and air,” he emphasized.

He also underscored the importance of Environmental, Social, and Governance (ESG) standards, noting that sustainability reporting must now stand alongside financial statements to ensure global competitiveness.

The summit, he said, would explore strategies for sustaining production recovery, tackling pipeline vandalism, resolving contract delays, developing marginal fields, and bridging funding gaps. Osifo reaffirmed the union’s commitment to member welfare, including leadership development, health initiatives, wealth creation, and estate planning.

In his remarks, Group CEO of NNPC Ltd, Bayo Ojulari, praised PENGASSAN’s leadership and described PEALS as a vital platform for aligning labour, industry, and government to shape Nigeria’s energy future. He reiterated NNPC’s focus on innovation, collaboration, and safety, stressing that partnerships with unions and regulators are key to building a globally competitive sector.

Minister of Labour and Employment, Muhammad Dingyadi, also addressed the summit, urging Nigeria to lead in the global transition toward cleaner energy and ethical practices. “Resilience in oil and gas is not only about infrastructure or investment, but about people, labour policy, and empowering the workforce,” he said.

Dingyadi reaffirmed the ministry’s commitment to tripartite dialogue, decent work, skills development, and fair wages. He emphasized that health and safety must be “non-negotiable pillars” of a resilient energy system and called on unions to pursue constructive engagement, while urging government agencies to streamline regulations that balance labour welfare with investor confidence.