PENGASSAN explains the reasons behind the failure of Nigeria’s refineries

The association clarified that the failure of Nigeria’s refineries is not due to a lack of skilled Nigerian workers but results from political interference, which has deprived employees of the necessary tools, resources, and conducive environment to perform effectively. Mr. Festus Osifo, the president of the association, made this known on Friday during the ongoing 4th PENGASSAN and Labour Summit (PEALS 2025). He also pointed to widespread corruption and mismanagement as additional factors contributing to the refineries' decline.

The News Agency of Nigeria (NAN) reports that the three-day summit, held in Abuja, carries the theme, “Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment and Incremental Production.”

Osifo emphasized that Nigeria’s energy future depends on more than just skilled manpower, highlighting the urgent need for adequate tools, policy stability, and supportive reforms to foster sector growth.

He noted that during the COVID-19 pandemic, Nigerian workers successfully operated offshore platforms after expatriates left, demonstrating that the country has the skilled workforce capable of maintaining global-standard energy production without interruption.

Osifo further explained that inconsistent policies and political interference have weakened investor confidence and hampered Nigeria’s oil and gas industry. He expressed concern over the frequent amendments to petroleum laws, warning that such instability discourages crucial investments.

He stressed that predictable fiscal policies are essential to attract foreign investment and support long-term infrastructure development. “We must create an industry with policies investors can rely on for the next five to ten years. Constant policy shifts only drive investors away and hinder sector growth,” he stated.

Regarding workforce development, Osifo called on both local and international operators to prioritize training and capacity building, ensuring Nigerian workers remain competitive and ready to meet evolving energy and labor market demands.

In a goodwill message, Mr. Nuhu Toro, Secretary General of the Trade Union Congress (TUC), praised PENGASSAN’s vision, describing the summit as an exemplary platform for strategic dialogue within the energy sector. “This summit showcases the foresight and strategic thinking necessary to address industry challenges and their effects on organized labor,” he said.

Toro encouraged other unions under the TUC to follow PENGASSAN’s lead, emphasizing that modern engagement, open dialogue, and innovation are vital to improving workers’ welfare and strengthening collective bargaining power.