The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has accused regulatory agencies of failing to enforce expatriate quota laws by allowing foreign workers to take over key roles in the country’s oil and gas industry.
The union’s concerns resurfaced during a recent protest at the Lagos headquarters of Sterling Oil Exploration and Energy Company Ltd, where members picketed over alleged breaches of labour laws, expatriate employment quotas, and worker welfare issues.
Speaking during the demonstration, PENGASSAN President Festus Osifo criticized the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB), and the Nigerian Immigration Service, alleging they have turned a blind eye to widespread abuses of expatriate employment regulations.
Foreign Workers Dominate Key Roles
Osifo pointed to Sterling Oil’s hiring practices, alleging that the company employs over 10,000 Indian nationals, filling roles that could be occupied by Nigerians.
“Sterling is reported to have over 10,000 Indian nationals working in various capacities, from gatekeepers to panel operators and even cooks,” Osifo stated. “This raises important questions about the application of the expatriate quota in the sector and whether Nigeria’s regulatory agencies are enforcing the rules as intended.”
He compared Sterling Oil’s employment model to international oil companies (IOCs) like Chevron, ExxonMobil, and Shell, where Nigerians occupy the core operational roles, including offshore panel operators on complex platforms.
“In some of the most sophisticated oil platforms operated by IOCs, the entire workforce is Nigerian. But in simpler platforms operated by Sterling, all the panel operators are Indian nationals,” he added.
Regulatory Inaction Under Scrutiny
The expatriate quota system, established by the Federal Ministry of Interior, is designed to ensure that foreign workers are employed only when no qualified Nigerians are available for a position.
However, PENGASSAN argues that many companies are exploiting loopholes in the system, bringing in expatriates for roles where Nigerians are readily available.
The union has called on the NNPCL, NUPRC, NCDMB, and Immigration Service to take decisive action to enforce compliance with local content laws and protect the interests of Nigerian workers.
Welfare Concerns and Threat of Industrial Action
Beyond the expatriate quota breaches, PENGASSAN also raised concerns over poor working conditions and unfair compensation for Nigerian employees at Sterling Oil.
“It is crucial that Nigerian workers are treated fairly, especially considering the current economic climate,” Osifo stressed.
The union is also demanding the reinstatement of 18 Nigerian workers who were allegedly dismissed by Sterling Oil, calling the move unjust and harmful to employee morale.
Osifo warned that if the government and regulatory agencies fail to act, PENGASSAN would mobilize a broader industrial response across the oil and gas sector.
“We are hopeful that the government and regulatory bodies will act swiftly to address these concerns. If necessary, we will take steps to ensure that the rights of Nigerian workers are protected, including considering a broader mobilisation of workers across the industry,” he said.
As the dispute escalates, the focus now shifts to the regulatory agencies and their next course of action, with industry stakeholders closely watching how the government responds to the ongoing labour concerns in Nigeria’s oil sector.
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