Expatriate Quota Abuse in Nigeria’s Oil and Gas Sector: PENGASSAN Calls for Urgent Government Action

By DAYO ADESULU

Regulators Accused of Overlooking Expatriate Quota Violations in the Oil and Gas Industry

The persistent issue of expatriate quota abuse in Nigeria’s oil and gas sector has once again sparked outrage, as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) accuses regulatory bodies of failing to enforce local employment laws.

This long-standing concern resurfaced recently during the picketing of Sterling Oil Exploration and Energy Company Ltd (SEEPCO) by PENGASSAN members, who allege violations of expatriate quota regulations, labor laws, and unfair treatment of Nigerian workers.

The President of PENGASSAN, Festus Osifo, condemned the widespread hiring of foreign workers in roles meant for Nigerians, particularly in the oil and gas sector. He further accused Nigerian regulatory agencies of failing to check the abuse of expatriate quotas, thereby worsening the country’s unemployment crisis.

Sterling Oil Accused of Mass Expatriate Employment at the Expense of Nigerians

Speaking during the protest at Sterling Oil’s Lagos headquarters, Osifo alleged that the company employs a disproportionately high number of expatriates, particularly Indian nationals, in positions that could be occupied by Nigerians.

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“Sterling reportedly has over 10,000 Indian expatriates working across various job roles, including gatekeepers, panel operators, and even cooks. This raises serious questions about how the expatriate quota system is being enforced and whether Nigerian authorities are fulfilling their oversight responsibilities.”

Osifo emphasized that major International Oil Companies (IOCs) such as Chevron, ExxonMobil, and Shell adhere to local content laws, ensuring that Nigerians occupy key technical positions. However, he noted that Sterling Oil operates differently.

“In some of the most advanced offshore platforms run by IOCs, Nigerians are the majority workforce. But at Sterling Oil, even the panel operators—who oversee relatively simple operations—are all expatriates.”

Regulatory Agencies Blamed for Neglecting Expatriate Quota Oversight

Osifo did not hold back in his criticism of regulatory agencies, accusing them of allowing expatriate quota abuses to persist unchecked. He specifically called out:

• Nigerian National Petroleum Company Limited (NNPC)
• Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
• Nigerian Content Development and Monitoring Board (NCDMB)
• Nigerian Immigration Service (NIS)
• Ministry of Interior

He alleged that these agencies have failed to take proactive measures against expatriate quota violations, leading to increased job losses for Nigerians.

“We demand immediate enforcement of expatriate employment rules. Nigerian jobs must be protected, and foreign workers should only be employed in positions where local expertise is unavailable.”

Nigerian Workers Face Poor Welfare Conditions at Sterling Oil

Beyond the expatriate quota violations, Osifo highlighted the harsh working conditions faced by Nigerian employees at Sterling Oil. He pointed out that:

• Local workers receive significantly lower wages compared to expatriates.
• Nigerian employees lack job security and face unjust terminations.
• Expatriates enjoy superior benefits and work conditions, despite performing similar roles.

“Nigerian workers deserve fair wages and better working conditions, especially considering the current economic crisis.”

PENGASSAN also condemned the recent dismissal of 18 Nigerian workers at Sterling Oil, describing the move as unjust and detrimental to worker morale. The union demanded their immediate reinstatement.

PENGASSAN Threatens Nationwide Strike Over Expatriate Quota Abuses

Osifo warned that if the government and regulatory agencies fail to address these violations, PENGASSAN will be left with no choice but to mobilize a nationwide protest across the oil and gas sector.

“We are giving the government and relevant agencies a chance to correct these anomalies. However, if no action is taken, we will be forced to intensify our protests and expand our demonstrations across the entire industry.”

The expatriate quota system was originally designed to protect Nigerian jobs and limit foreign employment to areas where local expertise is unavailable. However, ongoing violations suggest that these rules are not being enforced effectively.

Call for Stronger Regulations to End Expatriate Quota Abuse in Nigeria

With concerns mounting over expatriate quota abuse in Nigeria’s oil and gas sector, industry stakeholders are urging the government to:

✅ Enforce strict penalties on companies violating quota regulations.
✅ Strengthen monitoring and compliance mechanisms.
✅ Ensure fair employment opportunities for Nigerians.
✅ Prevent wage disparities between local and expatriate workers.

The oil and gas industry remains a key driver of Nigeria’s economy. To ensure sustainable growth, experts stress the urgent need for a fair and transparent expatriate quota policy that genuinely prioritizes Nigerian workers.

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Dayo Adesulu, online editor, SEO expert.