Oil
NUPENG begins 3-day warning strike over ‘unfair’ practices in oil firms
LAGOS – The National Union of Petroleum and Natural Gas Workers, NUPENG, begins today (Monday) a nationwide three-day warning strike over, among others things, perceived unfair labour practices by Shell Petroleum Development Company, SPDC; Chevron Nigeria Limited and Agip Oil Company.
Petroleum Tanker Drivers, PTD, have been directed not to load products in all fuel depots and tank farms across the country, during the three days warning strike.
NUPENG is also protesting the alleged refusal of National Association of Road Transport Owners, NARTO, to implement the signed collective bargaining agreement with PTD, and the sorry state of Nigerian roads.
The union warned that should government and other stakeholders fail to address its grievances after the three-day warning strike, it would declare an indefinite strike.
Specifically, NUPENG is lamenting alleged worsening unfair labour practices by SPDC, Chevron and Agip Oil, accusing them of inhuman treatment of Nigerians through casualisation and outsourcing of workers, among others.
It argued that if the agreements reached with the multinational companies at a meeting called by the Minister of Labour and Productivity, Chief Emeka Wogu, in May 2012, was implemented, these issues would have been resolved.
Issues
Investigation revealed that close to 90 percent of Nigerians working in the petroleum industry are either contract, casual or outsourced workers with conditions of work not commensurate with industry standards and best global practices.
These workers remain without job security terminal benefits, among others, for many years, without conversion to permanent workers.
Contract workers are being handed over to labour outsourcing companies without receiving terminal benefits.
The outsourcing of labour to contractors exposes workers to possible exploitation and often times these contractors prevent workers from join the union.
It would be recalled that NUPENG had on June 6, in Lagos, issued a 14-day strike notice to the Federal Government over disputes with SPDC, Chevron and Agip, threatening a nationwide strike.
The union called on the Federal Government to summon an all-stakeholders’ national conference on oil and gas to address, among others, labour issues in the sector before the expiration of the ultimatum or the union would declare an indefinite nationwide strike.
NUPENG scribe speaks
General Secretary of NUPENG, Isaac Aberare, said the three-day warning strike, starting today, was to protest unfair labour practices by oil multinationals namely.
He said: “The strike is also to protest the refusal of NARTO to implement the signed collective bargaining agreement with the Petroleum Tanker Drivers and the sorry state of roads across the nation.
“The union calls for understanding from Nigerians, as all efforts by the Ministry of Labour intervention three weeks ago have failed.”
Agip sacked 93 without benfits, says NUPENG President
President of NUPENG, Achese Igwe, accused Agip Oil of terminating the appointment of 93 contract workers that had worked with the firm for between 25 and 35 years, without benefits despite directives by the Ministry of Labour and Productivity.
He also accused the firm of promoting 96 workers, who have spent over 15 years as contract workers under NUPENG, to Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, as contract staff, instead of converting them to full time workers.
Igwe accused Chevron of converting workers from contract labour to service labour.
He said SPDC refused to have Collective Bargaining Agreement, CBA, with the workers and also denied them the right to join union, among others.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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