By Muhammad Mamman
Abuja, Nigeria — Tensions are rising within Nigeria’s oil and gas sector after the President’s executive order mandating a 2 percent deduction from the revenues of the Nigerian National Petroleum Company Limited (NNPC) sparked fears over workers’ salaries.
The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has warned that the deduction could directly impact the company’s ability to meet its wage obligations.
“The 2 percent that will be deducted from the NNPC by the President’s executive order is what the NNPC uses to pay salaries,” Osifo said, expressing deep concern over the financial implications of the directive.
Workforce at Risk
Osifo cautioned that declining revenue in any organisation typically places workers at the greatest risk.
“We all know that when revenue dries up in an organisation, the first casualty is the workforce. The workers in NNPC today are an endangered species,” he stated.
His remarks underscore growing anxiety among employees of the state oil firm, particularly at a time when Nigeria’s energy sector is grappling with production challenges, fluctuating global oil prices and mounting operational costs.
Broader Economic Implications
Industry analysts say the executive order could have far-reaching consequences beyond internal salary concerns. As Nigeria’s primary oil revenue generator, NNPC plays a pivotal role in funding government expenditure and stabilising the foreign exchange market.
Labour representatives argue that any policy that weakens the company’s cash flow risks undermining both operational efficiency and staff morale. They are urging the government to reconsider the deduction or provide safeguards to ensure workers’ earnings are protected.
Government Yet to Respond
As of press time, the Federal Government has not issued an official response to PENGASSAN’s concerns. However, stakeholders within the energy sector are closely monitoring developments, wary of potential labour unrest if salary payments are disrupted.
The unfolding situation adds another layer of complexity to ongoing reforms within Nigeria’s oil and gas industry, where balancing fiscal policy and workforce stability remains a delicate task.
