PENGASSAN accuses IOCs of abusing quota system

The Petroleum and Gas Senior Staff Association of Nigeria (PENGASSAN) has criticised International Oil Companies (IOCs) for abusing the expatriate quota system.

President of PENGASSAN, Festus Osifo, voiced these concerns during his address at the conclusion of the 2024 PENGASSAN Energy and Labour Summit (PEALS) in Abuja over the weekend. He alleged that this abuse has led to discrimination against skilled Nigerian workers in the oil and gas sector.

According to him, these discriminatory practices by expatriates, particularly Indian nationals, are monopolising jobs that Nigerians are qualified to perform.

“In companies like Sterling Oil, we see a disproportionately high number of Indian staff, even in basic roles such as vulcanizing, compared to Nigerian employees. Their plant operations are dominated by Indians, whereas other companies have more Nigerian staff in similar positions. We have previously raised these concerns with the NCDMB about the misuse of the expatriate quota,” Osifo said.

Osifo expressed frustration over the ongoing abuse of the expatriate quota law despite the existence of local content regulations designed to enhance Nigeria’s capacity in the sector. He urged regulatory authorities to take action against these violations.

At the summit, other industry experts discussed future challenges and emphasised the need to bridge the gap between global standards and Nigeria’s current practices to better attract and retain talent.

They stressed the importance of collaboration among industry leaders to tackle leadership issues, foster innovation, and embrace diversity for a sustainable future.

READ ALSO: PENGASSAN seeks inclusive policies to promote gender equality

Professor Kingsley Nwozor, a geology and geophysics expert, highlighted the potential cost savings that Artificial Intelligence (AI) could bring to the industry, estimating a reduction of $100 million to $1 billion by 2025. He called for a unified approach to digital transformation, with a strong focus on cybersecurity, to advance the oil and gas sector in Nigeria and ensure its long-term sustainability.