Mohammed Shosanya
A country that cannot meet its energy needs or guarantee energy availability for its citizens is on the path of becoming a failed state,President of
Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN),Comrade Festus Osifo,has said.
Nigeria has been battling recurring fuel scarcity necessitating skyrocket cost of the product and increased cost of doing business in the country lately.
Osifo,who stated this on Wednesday in Abuja at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024),also said Nigeria stood at a crossroads, especially in the oil and gas sector.
The union vowed to take action to end the scourge, which poses a significant threat to the oil industry, economy, and national integrity.
He attributed the current economic hardship in Nigeria to the policies of the government like the floating of the currency.
Speaking on the themed: “The future of Nigeria’s oil and gas industry: Energy mix, energy security, Artificial Intelligence, divestment, and crude oil theft”, he said: “The scourge of crude oil theft poses a significant threat to our industry, economy, and national integrity.
“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,’’ he said.
Osifo,who is also the President of Trade Union Congress of Nigeria,said the actions and decisions of the association must gear toward rescuing the country.
He said the summit would design a framework for a policy trust for the government towards shaping the economic outlook of the 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 N1600.
“This is the reason why the landing price of PMS today is over N1,000 (reintroduction of subsidy), the reason why AGO is selling for over N1,300 and the reason why all imported commodities are over the roof today. The overarching impact of these on Nigerians can only be imagined rather than experienced,’’ he said.
According to him the floating of the naira in the official market had exacerbated the challenges faced by their members.
He called on industry players to explore innovative solutions to forestall financial losses to workers and prevent undue gains to companies and ensure a fair and equitable environment for all.
Osifo said PENGASSAN would do all it could to push for just and equitable distribution across its branches.
He appreciated the President Bola Tinubu for the recent signing of Executive Order that granted incentives to investments in the oil and gas industry.
He said the move translated to the recent $550 million Final Investment Decision announced by NNPC Limited and TotalEnergies on the Ubeta project.
Osifo said PENGASSAN also recognised the efforts of NNPC Limited management in furthering partnership initiatives in the upstream and downstream sector of the Industry.
“The recent MOU signed by NNPC Limited with Total Energies and separately with Shell are indications of fostering good relationships with critical partners.
“The expansion of CNG and LPG infrastructures by NNPC Limited across the nook and crannies of the country is a right step in the right direction and this must be encouraged and deepened,’’ he said
He assured that the summit would forge a path toward a brighter and more sustainable energy future for the industry and the nation.
Speaking,the Minister of State for Oil, Senator Heineken Lokpobiri, noted that one of the major issues the country is facing was energy security and sufficiency.
He said Nigeria plays critical role in energy security in Africa, adding that the surest way to resolving Nigeria’s socio-economic problem would by ensuring energy security in oil and gas.
He explained why smuggling of the petroleum products would not go away so soon.
He said, “The integration of 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 labor—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.”
