Oil
Nigeria’s expatriate oil workers highest paid in Africa
LAGOS – Expatriate workers in the Nigerian oil and gas sector are the highest paid in Africa and 11 most paid in the world, with an average annual salary of N22.246 million ($140,800), according to a global oil and gas salary survey.
The survey, titled, ‘Oil and Gas Global Salary Guide 2013,’ published by Hays, a global recruitment firm, also revealed that local workers in the Nigeria’s oil and gas sector are the second highest paid in Africa, after South Africa and 26th in the world, with an average salary of N8.706 million ($55,100).
The survey, released weekend, which was based on the responses of 25,000 people working in the oil and gas industry across 53 countries, reported that South Africa’s local workers in the country’s oil and gas sector are the highest paid in Africa, with an annual average salary of $75,300 (N11.897 million).
The survey showed that local workers in Australia’s oil and gas sector are the highest paid in the world with an annual average salary of $163,600 (N25.849 million).
The report also stated that expatriates in Australia’s oil sector are the highest paid globally, with an annual average salary of $171,000 (N27.018 million) per annum.
Salaries in other African countries
In the eight African countries sampled, Angola’s local oil workers were the third highest paid workers in Africa with an annual average salary of $53,700 (N8.485 million), followed by Algerian workers with an annual average salary of $45,200 (N7.142 million) and Libya, with average annual salary of $42,200 (N6.668 million).
Others are Egypt, with average annual salary of $41,900 (N6.62 million); Ghana, with average salary of $40,500 (N6.399 million) per annum, while Sudan trailed with $31,100 (N4.914 million) average annual salary.
In an analysis of the survey, Hays said, 2012 was a good year for many in the oil and gas world with an increase in salaries, benefits and conditions. The same cannot be said for too many other industries and it would not be stretching the truth to state that more wealth has been created in the oil and gas industry than any other over the last 12 months. With nearly every country around the world striving to secure its own energy future, either through exploration, increased production or developing infrastructure, demand for the oil and gas professional, in all its guises, was most definitely high.
“Our headline figure for the average base salary has once again grown to now sit at $87,300*, showing an 8.5 per cent increase on the previous year. Such an increase now accounts for a 14 per cent rise in base salary in two years alone.
“That is significant for an industry employing some five million people worldwide. There were numerous developments contributing to this rise through 2012, not least of which was a proliferation of non-conventional field developments. This was seen by many nations as the route to energy independence and saw a wave of hiring. Indeed many countries eagerly embarked on this path only to discover that the skills didn’t exist, at least not in their own country.”
“At the top of this year’s table we once again see Australia and Norway. Both countries have limited skilled labour pools and significant workloads; the result is very high pay rates, although both would appear to have met some sort of ceiling. Completing the top five on local salaries, we also see New Zealand, Netherlands and Canada.
Where imported salaries are concerned, it is once again the frontiers of the industry that are pushing the upper limits of pay. Representing a mix of danger money and hardship allowance in these base salaries, we find Russia’s arctic exploration driving imported skills, and China’s drive on non-conventional skills also pulling in experts on premium rates. Along with Australia, the Caribbean hub for oil and gas, Trinidad & Tobago, rounds off the top five importers by salary level.
“The major headwind in the world economy in late 2012 was the slowdown in growth within the Chinese manufacturing sector. It is therefore somewhat surprising that their local and imported salary figures exhibit such growth.
“However, taking a closer look at the market this is clearly a reflection of their quest to become self reliant on energy in the future driving exploration and infrastructure development, than any immediate increase in domestic energy demand. Other countries showing big increases include Iraq, Nigeria, Thailand and Argentina. The first two reflect significant project demand; Argentina is playing catch up on the previous year’s sluggish growth; and Thailand is increasingly home to many oil and gas professionals on rotation on offshore facilities in South East Asia or North Western Australia,” the report concluded.
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.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
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.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
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.
Entertainment Made Africa Look Good Despite Bad Leaders — Davido
NECO Expands Global Footprints, Accredits Niger, Equatorial Guinea Schools
Harry Kane Hits Back At Critics With Historic Hat-Trick For Bayern Munich
Angry Mob Burns Two Revenue Touts Alive After Fatal Accident In Onitsha
Ex-UN Envoy Warns Of New Cold War Threatening Africa’s Unity
EPL Confirms 2025/26 Season Dates, Introduces Player Welfare Measures
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
