The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has threatened to shut down the country’s oil and gas sector over alleged violations of expatriate quota laws by Sterling Oil Exploration and Energy Production Company Limited (SEEPCO), an Indian oil firm.
Allegations Against SEEPCO
PENGASSAN President, Festus Osifo, accused SEEPCO of hiring over 10,000 Indian workers for jobs meant for Nigerians. He claimed that despite multiple complaints to regulatory bodies, the company continues to ignore local content laws.
Last week, the union protested at SEEPCO’s headquarters in Lagos, accusing the company of anti-labour practices. However, SEEPCO insists it follows Nigerian laws and industry regulations.
Violation of Local Content Laws
Osifo highlighted breaches of Nigeria’s Local Content Act, specifically:
- Section 35, which reserves junior and intermediate jobs for Nigerians.
- Section 32, which limits expatriates to just 5% of management positions.
He said SEEPCO employs foreign workers in roles like welders, security guards, cooks, and panel operators jobs meant for Nigerians.
Demands and Strike Threat
PENGASSAN is demanding:
- Immediate removal of all expatriates in jobs meant for Nigerians.
- Reinstatement of 18 workers sacked for demanding better conditions.
- Full unionisation rights for contract staff.
- Strict enforcement of local content laws.
Osifo warned that if the government fails to act, oil workers will shut down the sector. He criticised the mass employment of Indians, claiming that “every Tuesday, between 200 and 500 Indians arrive in Nigeria, replacing local workers.”
Concerns Over Labour Rights
The union also accused SEEPCO of preventing contract workers from joining unions, despite clear directives from the Ministry of Labour and Employment.
Osifo argued that if other oil companies, including multinationals and indigenous firms, comply with Nigerian laws, SEEPCO should not be an exception.
With tensions rising, the oil and gas industry faces the risk of a nationwide shutdown if the dispute is not resolved.
