The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed serious concerns over the increasing abuse of the expatriate quota system in the country’s oil and gas industry. The union particularly raised alarms over the growing number of expatriates coming from India, urging the Nigerian regulatory authorities to take immediate action.
Speaking at a National Executive Council (NEC) meeting in Abuja, PENGASSAN President Festus Osifo highlighted the issue, stating: “A key concern is the rising number of foreign workers in Nigeria’s oil and gas sector, with many of them coming from India. While skilled foreign workers are vital for economic development, the situation has become unsustainable and needs attention.”
Osifo went on to explain that the influx of foreign workers, particularly those from India, could have negative long-term effects on the country’s national development. He stressed that the presence of so many expatriates, coupled with possible abuses of the expatriate quota, is not only straining the economy through high salaries and remittances, but is also causing social tension. Many Nigerians feel excluded from job opportunities in the industry, fuelling resentment and unrest.
“We are calling for stronger regulatory mechanisms to enforce local content regulations, ensuring that Nigeria’s natural resources benefit all Nigerians. Transparency and accountability must be prioritised in managing expatriate employment in the sector,” Osifo said.
In addition to addressing the issue of expatriates, Osifo updated the council on ongoing efforts related to the Collective Bargaining Agreement (CBA). He explained that PENGASSAN has been engaging with management across the oil and gas sub-sectors to negotiate improved conditions for members. “We have successfully secured salary increases ranging from 150% to over 200% for some of our branches. This is part of our strategy to help members navigate the current economic challenges,” he added.
Osifo also provided an update on the reorganisation of PENGASSAN’s Secretariat. The process, he explained, is more than just a structural overhaul but a strategic initiative aimed at enhancing the union’s efficiency and ability to serve its members better. “Our current structure has its limitations. This reorganisation will address those gaps and ensure that we are better equipped to meet the evolving needs of our members and the dynamic energy sector,” he concluded.
PENGASSAN’s call for action on expatriate quotas and its ongoing efforts to improve the welfare of its members reflect the union’s commitment to ensuring fair representation and sustainable development in Nigeria’s vital oil and gas industry.