Written by Springnewsng Media Limited, March 13, 2025.

The issue of expatriate quota abuse in Nigeria’s oil and gas sector has once again come to the forefront following the recent picketing of Sterling Oil Exploration and Energy Company Ltd by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). The protest was driven by allegations of breaches in expatriate quota regulations and labor laws.

PENGASSAN President, Festus Osifo, accused Nigeria’s regulatory agencies of turning a blind eye to the widespread abuse of the expatriate quota in the oil and gas industry. Osifo highlighted the practices of Sterling Oil, which he claims exploits loopholes to employ thousands of foreign workers at the expense of Nigerians.

During the demonstration at Sterling Oil’s Lagos headquarters, Osifo raised concerns over the company’s employment practices, alleging that a disproportionately large number of foreign workers, particularly from India, occupy roles that could be filled by Nigerians.

“Sterling is reported to have over 10,000 Indian nationals working in various capacities, from gatekeepers to panel operators and even cooks. This raises important questions about the application of the expatriate quota in the sector and whether Nigeria’s regulatory agencies are enforcing the rules as intended,” Osifo stated.

He contrasted this situation with that of international oil companies (IOCs) such as Chevron, ExxonMobil, and Shell, where Nigerians occupy core operational roles, including panel operators on complex deep offshore platforms. “In some of the most sophisticated oil platforms operated by IOCs, the entire workforce is Nigerian. But in simpler platforms operated by Sterling, all the panel operators are Indian nationals,” he added.

Osifo expressed frustration over the apparent complicity of regulatory bodies, including the Nigerian National Petroleum Corporation (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Content Development and Monitoring Board (NCDMB), and the Nigerian Immigration Service. These agencies, he claims, have failed to enforce the expatriate quota policy.

“We want to see these agencies take a more active role in ensuring that the rules governing expatriate employment are followed,” Osifo urged.

He also raised concerns about the welfare of Nigerian workers at Sterling, pointing out that local employees receive substandard compensation and working conditions compared to expatriates. “It is crucial that Nigerian workers are treated fairly, especially considering the current economic climate,” he emphasized.

While PENGASSAN is not opposed to foreign investment, Osifo stressed that such investment should adhere to Nigerian regulations and benefit the local workforce. “Our call is for investors to adhere to Nigerian regulations, ensuring that local workers are given priority in employment opportunities,” he stated.

The protest also included demands for the reinstatement of 18 employees reportedly dismissed by Sterling, a move Osifo described as unjust and harmful to the morale of Nigerian workers.

Osifo warned that PENGASSAN would take further action if the issues remain unaddressed. “We are hopeful that the government and regulatory bodies will act swiftly to address these concerns. If necessary, we will take steps to ensure that the rights of Nigerian workers are protected, including considering a broader mobilization of workers across the industry,” he concluded.