Osifo seeks policy stability, private investment in oil sector

Labour leader Festus Osifo, on Monday, urged the Federal Government to ensure policy stability and encourage private investment to grow in the oil and gas sector.

The outgoing President, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), made the call in an engagement with members of the Labour Writers Association of Nigeria (LAWAN) in Lagos.

Osifo said frequent changes in policies and regulations could discourage investors, stressing the need for certainty in the operating environment.

‘’Investors need to know their tax, royalty and other obligations before committing funds to the oil and gas industry, ‘’ he said.

Osifo said that, although the Petroleum Industry Act (PIA) had recorded some successes, policy inconsistencies remained a concern.

He said the PIA had facilitated the establishment of sector regulators and transformation of the Nigerian National Petroleum Corporation into a limited company.

The labour leader added that the act facilitated the creation of a host community development fund.

He, however, expressed concern over alleged attempts to alter some provisions of the act through subsequent policies and executive orders, saying such actions could create uncertainty for investors.

“For us, one of the ways to attract investment is for you to have some level of certainty in the industry,” Osifo said.

Osifo said increased investment and expansion in the sector would provide more opportunities for Nigerians and strengthen the country’s energy security.

He urged government to allow existing laws and regulations to operate for a reasonable period to give investors the confidence to make long-term commitments.

On the nation’s refineries, Osifo advocated increased private sector participation, saying PENGASSAN had consistently promoted a model similar to that of the Nigeria Liquefied Natural Gas.

He proposed that private investors could acquire up to 51 per cent equity in the refineries, while government retained 49 per cent.

According to him, such an arrangement will reduce government interference and allow business decisions to be taken based on commercial considerations.

Osifo explained that some refineries had been shut down because they were operating at a loss, rather than simply because they were not functioning.

He said PENGASSAN supported the current move to bring an equity partner into the refinery business, describing it as a step in the right direction.

‘’Bringing in equity partners will encourage investment, improve refinery operations, strengthen energy security and create more employment opportunities, he said.

The labour leader also said protecting workers’ jobs and improving remuneration were key objectives of his administration.

He said that in spite of the divestments that took place in the oil and gas industry, no PENGASSAN member lose their job as a result of the divestments.

Earlier, Chairman of LAWAN, Mr Toba Agboola, in his remarks, appreciated Osifo for his contributions to the association and the labour movement.

He described Osifo as a friend and part of the association’s family, while expressing appreciation for his support and relationship with labour writers.