The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said that worsening insecurity in oil-producing areas, especially in the waterways, is the main reason many multinational oil companies are leaving the country.
Speaking in Abuja on Monday, PENGASSAN President, Comrade Festus Osifo, said despite new incentives introduced by the Federal Government to lower production costs, the lack of safety and government-backed security continues to drive companies away.
He explained that although President Bola Tinubu’s recently signed Upstream Petroleum Operations Cost Efficiency Incentives Order 2025 offers tax benefits to oil firms, it does not tackle the real problem.
“The main reason oil and gas companies are leaving Nigeria is insecurity. The cost of securing their operations in Nigeria is too high. That’s why they prefer countries like Mozambique, Angola, Congo, and Guyana, where it is safer and cheaper to do business,” Osifo said.
He revealed that oil firms in Nigeria often pay for naval vessels and armed escorts to guard offshore installations — something governments in other oil-rich countries provide freely.
“One offshore platform may need three or four gunboats, paid for daily by the company. This costs hundreds of millions of dollars yearly. In Ghana, for instance, the government provides that protection. Why can’t we do the same?” he asked.
Osifo also spoke on Nigeria’s troubled refineries, suggesting that the government adopt the successful Nigeria Liquefied Natural Gas (NLNG) model. Under that system, the government holds a minority share, while trusted private companies manage operations.
He claimed that some refineries were shut down due to politics, not because they were faulty.
“Let us remove politics from our refineries. The NLNG model has worked well — government holds a stake but does not interfere. Let’s try the same for Port Harcourt and others. Bring in real investors who can manage them properly.”
On the high cost of petrol in Nigeria, Osifo accused fuel marketers of exploiting citizens.
He explained that when crude oil dropped to around \$60 per barrel globally, the pump price of fuel in Nigeria should have been between ₦700 and ₦750 per litre, not ₦900 as it was being sold.
“At \$60 per barrel, Nigerians should have seen cheaper petrol. But that didn’t happen. We were clearly being overcharged,” he said.
He called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to act and protect consumers from unfair pricing.
Osifo also highlighted PENGASSAN’s new agreement with Sterling Oil Company, aimed at reducing the number of foreign workers in the oil sector and training more Nigerians to take up those roles.
He said local workers must be empowered to take over jobs currently done by expatriates.
As Nigeria marked Democracy Day on June 12, Osifo reminded the government that democracy must improve lives — not just be a political celebration.
“Democracy should mean food on the table, healthcare, education, and jobs for all Nigerians. After 26 years of uninterrupted democracy, we shouldn’t still be struggling with the basics,” he said.