Oil
NUPENG, PENGASSAN threaten showdown over planned sack of NNPC staff, PIB
LAGOS-THE Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, and the Petroleum and Natural Gas Senior Staff Association of Nigeria PENGASSAN, have rejected planned sack of no fewer than 1100 workers of the Nigerian National Petroleum Corporation, NNPC, and threatened to shut down the nation’s petroleum sector should the management go ahead with the sack.
Similarly, organised labour condemned the proposed Petroleum Industry Bill, PIB, describing it as anti-labour.
Labour expressed surprise and embarrassment that the Minister of state, Petroleum Dr. Ibe Kachikwu, could make such a statement on retrenchment of workers in the NNPC without consultation or recourse to the two Unions in the oil and gas sector; NUPENG and PENGASSAN.
NUPENG in a statement by its President, Igwe Achese, vowed that organised labour in the petroleum sector would resist such a move, as the cardinal policy of President Buhari Government was job creation and not job losses.
According to NUPENG, “we cannot watch and see our members who have served for years to be thrown into the unemployment market because of inconsistent policies of the government. NNPC workers are the best because they have continued to keep the oil and gas sector moving even when they have to work with obsolete equipment and indecent work environment. The workforce should not be used as guinea pigs but commended. The unbundling of the firm into four companies and intended restructuring should not have anything to do with sack of 1,100 workers which is one sack, too many.
“We advice the Federal Government to convene a major stakeholders’ meeting to x-ray the challenges facing the sector and proffer solutions, rather than chasing shadows. Towards this, it should ensure that the stakeholders’ meeting look at the Petroleum Industry Bill together before it is represented. The current policy of the NNPC to engage casual workers is against the extant labour laws of the country and should be condemned and a stop put to it. We believe that the impending retrenchment will be counter – productive and should not be allowed as we will resist it and call out our members to protest the action if the two oil unions in the sector are not consulted.”
On its part, PENGASSAN, while condemning the proposed PIB and describing it as anti-labour, vowed to resist the plan by the Federal Government to retrench workers, especially employees of NNPC as a result of the restructuring in the proposed PIB.
The association argued that the planned sack was not in tandem with the “change” that the government promised Nigerians, especially in the area of job creation.
Reacting to the official release of the proposed draft institutional and legal frameworks for reforms in the oil and gas industry by the Minister of State for Petroleum Resources, who is also Group Managing Director, GMD, of the NNPC, PENGASSAN Acting General Secretary, Lumumba Okugbawa, said that the provisions in the proposed PIB were not only anti-labour but also not in the national interest.
The PENGASSAN scribe, who commended the renewed effort by the Minister to rejuvenate the reforms after several failed attempts in the past, noted that PENGASSAN had always been in support of the reforms in the oil and gas industry but with a caveat that it must be transparently done to make sure that stakeholders in the oil and gas industry were carried along.
He, however, contended that PENGASSAN would not support any reforms that jeopardized the welfare of its members, noting that the restructuring would be resisted if it negatively affected the Association’ members.
On the plan to sack half of the current NNPC’s employees, Okugbawa said that the plan if carried out would further compound the unemployment situation in the country, arguing that there was nothing wrong with the unbundling of the NNPC to bring about greater efficiency and effectiveness.
He insisted however, that the unbundling and repositioning of the corporation should be done with human face, saying “ we have said on many occasions that the problem of the NNPC is not the workers but the high level of political interference in the corporation and we are satisfied that the current government has promised to give the Corporation free hand to operate for better service delivery to the Nigerian nation. Some of the inconsistencies noted by PENGASSAN in the draft bill include : a subtle ploy in Section 87 (Transfer of Staff) to retrench or drop some of the work force transiting to the new Nigeria Petroleum Regulatory Commission (NPRC) with the contentious clause ‘’transfer of certain employees”
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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