Uncertainty in Governance Hinders Oil Financial Commitments - PENGASSAN
The 4th Petroleum and Energy Advancement and Leadership Summit (PEALS 2025) was held in Abuja with the theme "Building a Resilient Oil and Gas Sector in Nigeria." Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), used the platform to outline key strategies for sustaining production recovery, curbing pipeline vandalism, and addressing contract delays.
Osifo began by referencing a tragic event, a helicopter crash near Bonny in 2024 that claimed the lives of three PENGASSAN members. This incident underscored the importance of strong safety procedures, continuous training, and transparent reporting across both offshore and onshore facilities.
One of the main concerns raised by Osifo was the frequent amendments to key laws, particularly the Petroleum Industry Act (PIA), which he felt created uncertainty for investors. He also emphasised the need for Environmental, Social, and Governance (ESG) standards, stating that sustainability reporting must be alongside financial statements for global competitiveness.
Osifo commended recent executive orders signed by President Bola Tinubu aimed at boosting oil production, advancing gas development, and streamlining contracting processes. He emphasised that health and safety must be "non-negotiable pillars" of a resilient energy system and urged companies to prioritise ESG compliance.
In addition, Osifo called for an immediate end to gas flaring, cleanup of polluted areas, and stricter accountability for oil operators. He pledged the union's continued commitment to members' welfare, including leadership development, health programs, wealth creation, and estate planning.
Group CEO of NNPC Ltd, Mr Bayo Ojulari, lauded PENGASSAN's leadership and described PEALS as a strategic platform aligning labour, industry, and government to shape Nigeria's energy future. NNPC's focus, according to Mr Ojulari, is on innovation, collaboration, and safety, with partnerships with unions and regulators being essential to building a globally competitive oil and gas sector.
Minister of Labour and Employment, Muhammad Dingyadi, urged Nigeria to lead, not just follow, in the global shift toward cleaner energy and ethical industry practices. He reiterated the ministry's commitment to tripartite dialogue, decent work, skills development, and fair wages. Dingyadi also called on unions to pursue constructive engagement and on government agencies to streamline regulations that balanced labour welfare with investor confidence.
President Bola Tinubu, who was in office during the PEALS 2025 conference, stressed that resilience in oil and gas is not only about infrastructure or investment, but about people, labour policy, and empowering the workforce. He lauded the efforts of PENGASSAN and NNPC in driving the sector towards sustainability and competitiveness.
In conclusion, the PEALS 2025 summit provided a platform for key stakeholders in Nigeria's oil and gas sector to discuss and strategise on ways to build a resilient sector that prioritises safety, ESG compliance, and sustainable growth. The event underscored the need for collaboration between labour, industry, and government to navigate the challenges facing the sector and position Nigeria as a global leader in the energy industry.
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