By Victor Ahiuma-Young & Precious Enaike

LAGOS: The President of the Trade Union Congress of Nigeria, TUC, Festus Osifo, has called for workers’ remuneration in Nigeria’s oil and gas industry to reflect prevailing inflation, stressing the need to protect jobs and improve workers’ welfare.

Osifo, who is the immediate past President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, made the call in Lagos at a reception organised by the TotalEnergies E&P branch of PENGASSAN to mark his successful six-year tenure as president of the union.

He said protecting jobs and ensuring that workers’ wages kept pace with inflation must remain central to the future of the oil and gas industry.

Reflecting on his tenure as PENGASSAN president, Osifo said his administration successfully protected workers’ jobs despite post-COVID-19 restructuring, currency devaluation and increased investment in the industry.

According to him, branches that had gone more than 10 or 15 years without collective bargaining agreements (CBAs) secured new agreements, while branches whose CBAs had remained unchanged for six to eight years also obtained improved welfare packages.

He disclosed that salaries in some international oil companies had increased by 300, 500 and even 700 per cent within the last year, while the union’s interventions helped prevent job losses following acquisitions and restructuring involving indigenous and international oil companies.

Osifo said the impact of improved wages and job security extended beyond oil and gas workers, noting that the industry’s workforce supports millions of dependants and communities.

He also identified the PENGASSAN Foundation as one of the major legacies of his administration, citing interventions in education, healthcare, electricity and community development across underserved communities.

On the proposed price cap on petroleum products by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Osifo warned that the policy could trigger investor flight and worsen price risks in the downstream sector.

He argued that imposing price controls in a liberalised petroleum market could discourage fresh investment, reduce competition and undermine efforts to bring down the cost of petroleum products.

Osifo urged NMDPRA to abandon the price-capping approach and instead focus on attracting more investors, particularly those willing to establish modular and large-scale refineries.

According to him, “What we should focus on is to have competition. When we have competition, competition naturally brings down price.”

He said the Petroleum Industry Act (PIA) clearly provides for a liberalised industry, stressing that the regulator’s priority should be to deepen competition rather than introduce policies capable of driving investors away.

He warned that “if we focus on that price capping, we are going to drive away investors,” arguing that more investors would create multiple players competing for market share and help bring petroleum prices closer to levels Nigerians could afford.

Beyond the downstream sector, Osifo called for increased investment in crude oil production, saying Nigeria should raise its output from about 1.8 million barrels per day to between three and four million barrels per day within the next three to 10 years.

He said the target was achievable given the country’s substantial crude reserves, estimated at between 30 billion and 38 billion barrels, adding that increased production would strengthen the industry and generate greater economic benefits.

On his future, Osifo said his immediate focus remained the TUC, where he has about two and a half years left in his tenure.

He said his priority was to move the labour centre to greater heights, adding that his various leadership positions had always been about service and that he remained open to future opportunities to serve humanity.