By Cross Udo, Abuja
The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, said a country that cannot meet its energy needs or guarantee energy availability for its citizens is on the path to becoming a failed state.
The PENGASSAN President, who is also President of the Trade Union Congress (TUC), attributed Nigeria’s current economic hardship to government policies like floating the currency.
Osifo stated the above in his address yesterday in Abuja at the 3rd edition of the PENGASSAN Energy and Labour Summit, which had the theme “The future of Nigeria’s oil and gas industry: Energy mix, energy security, artificial intelligence, divestment, and crude oil theft.”
*Says countries that can’t guarantee energy availability to citizens are on the path of failed state
While speaking on energy security, he said that ensuring robust energy security is paramount to Nigeria’s stability and progress.
He said, “A country that cannot meet its energy needs or guarantee energy availability for its citizens is on the path of becoming a failed state.”
Also speaking on crude oil theft, Osifo said that the scourge poses a significant threat to the nation’s industry, economy, and national integrity.
He said, “As an Association, we have mounted the rostrum over time, both on the streets and in the boardroom, to champion this cause, and we will not relent until victory is certain.
“We are steadfast in our resolve to continuously partner with other stakeholders in the industry to combat this menace through enhanced security measures, technological innovations, community engagement, and collaboration with law enforcement agencies.
“As we gather here, let us not lose sight of the broader state of our nation. Nigeria stands at a crossroads, and our actions and decisions here in the next few days will provide a framework for a policy trust for the government towards shaping the economic outlook of our country.
“It is incumbent upon us to drive positive change, foster economic growth, and ensure our people’s prosperity. Recent policy directions by the government have placed untold hardship on Nigerians. Chief among them is the flotation cum devaluation of the Naira, which saw our currency slide from N450 officially in May 2023 to the current exchange rate of about N1,600.
“This is why the landing price of PMS today is over 1,000 Naira (reintroduction of subsidy), why AGO is selling for over N1,300, and why all Imported commodities are over the roof today. The overarching Impact on Nigerians can only be imagined rather than experienced.
“Part of the floatation decisions has benefited the oil and gas companies in Nigeria. This has necessitated a call for a salary benchmark for oil and gas workers, aligning with the instrument of trade of the oil and gas commodity.
“The model practices in Angola, where legislation pegs workers’ salaries in dollars and pays them the legal tender equivalent, are a testament to the possibilities of safeguarding workers’ interests amidst currency fluctuations.
“The floating of the Naira in the official market has exacerbated the challenges faced by our members. We must explore innovative solutions to forestall financial losses to workers and prevent undue gains to companies, ensuring a fair and equitable environment for all.
“PENGASSAN will do all it can to push for this just and equitable distribution across its branches.”
He appreciated President Bola Tinubu for the recently signed executive order that grants incentives to investments in the oil and gas industry, adding, “This has translated to the recent $550million FID (Final Investment Decision) announced by NNPC Limited and TotalEnergies on Ubeta project.”
Also speaking, the Minister of State for Oil, Senator Heineken Lokpobiri, noted that one of the significant issues the country is facing is energy security and sufficiency.
The Minister said Nigeria plays a critical role in energy security in Africa, adding that ensuring energy security in oil and gas is the surest way to resolve Nigeria’s socio-economic problems.
He gave reasons why the smuggling of petroleum products would only go away for a while.
He said, “Integrating renewable energy sources alongside our traditional oil and gas resources is essential in achieving this balance. Energy security is at the core of national security.
“In an era where global energy dynamics are rapidly changing, Nigeria must strategically position itself to not only meet its domestic energy needs but also to remain a key player in the international arena.
“This requires a concerted effort from all stakeholders- government, industry, and labour -to develop policies and practices that safeguard our energy infrastructure and ensure uninterrupted supply.”
Speaking on the support for local refineries, the Minister said, “The Federal Government is committed to supporting local refineries in its bid to enhance domestic refining capacity, reduce dependency on imported refined products, and stimulate economic growth.
“The Federal Government remains determined to ensure that local refineries thrive by creating and promoting a conducive environment for potential investors, as we believe that having operational refineries within the country is crucial for our economic growth and energy security.”
