Nigeria oil sector faces talent gaps and regulatory uncertainty

Nigeria’s oil and gas sector is facing critical challenges regarding human capital, regulatory stability, and labor relations. Industry experts and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have warned that a widening technical talent deficit threatens long-term operational efficiency. This shortage is driven by a decade of stalled investment and the ‘japa’ phenomenon, where skilled professionals emigrate for better opportunities abroad, forcing companies to rely on retired veterans to fill specialized roles.

Furthermore, PENGASSAN President Festus Osifo has raised alarms over regulatory uncertainty. He noted that frequent alterations to the Petroleum Industry Act (PIA) 2021, including the movement of fiscal provisions to the Nigeria Revenue Act and the use of executive orders, undermine investor confidence. The union is also calling for greater collaboration between stakeholders to ensure that asset divestments do not result in job losses or the erosion of workers' rights.

Tensions have also escalated between labor and industry players, with the Dangote Petroleum Refinery accusing PENGASSAN of economic sabotage following supply disruptions. While the refinery views these industrial actions as a threat to national fuel stability, the union maintains that workers must be protected during industry transitions.