Nigeria’s oil and gas industry has long been a cornerstone of the country’s economy, generating substantial revenue and supporting millions of jobs.
However, the sector is also riddled with challenges, from fluctuating global oil prices and environmental concerns to regulatory pressures and internal inefficiencies.
In the midst of these challenges, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has emerged as a vital force in pushing for reforms and innovations that could reshape the industry’s future.
A key component of the association’s strategy is its Energy and Labour Summit (PEALS).
Against the foregoing backdrop, it is expedient to recall that PENGASSAN has positioned its Energy and Labour Summit (PEALS) as a key event for stakeholders in Nigeria’s petroleum sector. Since its inception three years ago, the summit has become a platform; where both public and private actors converge to exchange ideas and promote the advancement of the oil and gas industry.
Thus, the 2024 edition, held recently at Transcorp hotels plc in Abuja, Federal Capital Territory (FCT), followed this tradition. Themed “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft,” the summit drew experts, government officials, policymakers, labor leaders, and other key stakeholders to discuss the pressing issues facing the sector.
Comrade Festus Osifo, the president of the association, in his welcome address, reflected on the purpose of the Summit.
He explained that the idea behind PEALS was to fill a gap in existing conferences and seminars within the oil and gas sector that often overlook the impact of industry policies on workers, the individuals, who he described as “the goose that lays the golden eggs.”
“It is the shortcomings of those conferences, which focus solely on policy, technology, and profit-making, that PEALS was designed to address,” Osifo said.
He emphasised that resolutions from past summits have been implemented to improve the lives of PENGASSAN members and protect their jobs.
The 2024 summit theme was specifically selected to examine how energy security, artificial intelligence (AI), divestments, and crude oil theft impact not only the workforce in the industry but also the general public and the nation’s economy.
According to Osifo, Nigeria’s oil and gas sector is at a pivotal moment, facing both significant opportunities and challenges as the country transitions toward sustainable energy.
As president of the association, he expressed his commitment to shaping a resilient, adaptive, and forward-looking strategy for the sector’s future.
He highlighted several critical areas that cut across energy mix, energy security, Artificial Intelligence (AI) and divestment
As gathered from the speech, and other notable comments at the event, the transformation of Nigeria’s energy sector requires a diversified approach, integrating renewable energy sources, natural gas, and innovative technologies. Such a strategy is essential for environmental sustainability and will position Nigeria as a leader in creating a balanced energy portfolio that meets both domestic and global demands.
In a similar vein, the need for energy security was highly emphasised as there was unanimity among virtually all the stakeholders that it is vital for Nigeria’s stability and progress.
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They also concurred that investments in infrastructure, partnerships with international players, and the development of local capacity will be necessary to secure the country’s energy future and reduce its vulnerabilities to global energy dynamics.
Also, the relevance of AI in the industry was not underplayed as voices resonated over its capacity of offering enormous potential for increasing efficiency, optimization, and predictive capabilities in the oil and gas industry.
It was gathered in the speech that by adopting AI-driven solutions in exploration, production, and operations, Nigeria can significantly enhance its competitiveness and sustainability.
Regarding divestment, the trend of international oil companies (IOCs) divesting from Nigeria requires a shift in strategy. Osifo posed the question: “Does this represent an opportunity for local innovation and empowerment, or does it signal a downturn for the industry?”
He reaffirmed PENGASSAN’s commitment to using this transition as a catalyst for domestic growth, self-reliance, and job security.
Osifo expressed concern about the wave of divestments by companies such as ExxonMobil, Nigeria Agip Company, and Shell Petroleum Development Company (SPDC), among others. These divestments, he noted, are reshaping Nigeria’s energy sector and necessitate a collective reflection on the future of the industry and its workforce.
In addition to the issue of divestment, he addressed the growing threat of crude oil theft, describing it as a major risk to Nigeria’s economy and national security. PENGASSAN, he said, has been at the forefront of efforts to combat this menace, both through public advocacy and behind closed doors.
The association remains committed to working with other industry stakeholders, law enforcement agencies, and local communities to strengthen security and curb theft through technological innovations and enhanced collaboration.
Looking ahead, Osifo stressed that the decisions made during the summit would shape government policy and determine the economic trajectory of the country.
He condemned recent government policies that have worsened the hardship experienced by ordinary Nigerians, particularly the floating and devaluation of the naira.
On the fast depreciation of the naira currency, he said, it has led to skyrocketing prices of fuel and other essential commodities, with devastating effects on the cost of living.
He noted that while oil and gas companies in Nigeria have benefitted from devaluation of the naira, workers in the industry have suffered financial losses.
To address this imbalance, Osifo called for a salary benchmark for oil and gas workers, modeled after the system in Angola, where workers’ salaries are pegged to the U.S. dollar to protect them from currency fluctuations.
“The floating of the naira has compounded the financial challenges faced by our members. We must seek innovative solutions to protect workers’ wages and ensure fair and equitable treatment across the sector.”
PENGASSAN, he concluded, will continue to advocate for policies that safeguard the rights and interests of oil and gas workers, pushing for a more just and equitable distribution of wealth within the industry.
The 2024 PENGASSAN Energy and Labour Summit ended with a clarion call to the government, industry stakeholders, and regulators to take decisive action.
The future of Nigeria’s oil and gas industry rests on the country’s ability to navigate a rapidly changing energy landscape, where technological advancements, security challenges, and the global push for renewable energy are reshaping the sector. By adopting the summit’s recommendations, Nigeria has the potential to not only secure its energy future but also drive long-term economic prosperity for its citizens.
