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Crisis Looms In Indorama Over Poor Welfare

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Workers in Indorama, former Eleme Petrochemicals Company Limited, have threatened to down tools if the management does not address what they called the poor salary and welfare of staff of the company.

  The Tide learnt that for the last three weeks, agitation by workers for improved welfare has been treated by management with a wave of the hand.

  The workers, who three weeks ago wore black uniforms to work to demonstrate their rejection of newly approved monthly take home pay, said their patience was running out, and may soon down tools to register their dissatisfaction with the management decision.

  But worried by the development, the management of Indorama has intensified lobby of the leaderships of both Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and National Union of Petroleum and Natural Gas Workers of Nigeria (NUPENG), as a strategy to muzzle the workers.

  A reliable source told The Tide that the leaders of both unions had met at far away Calabar, the Cross River State capital, last week with the management of Indorama in a bid to resolve the issues.

  According to our source, last week’s meeting brings to three the number of such meetings without any meaningful agreement on the table.

  The Tide gathered that one of the major issues in contention is the disparity in salaries and the poor welfare packages between expatriate and indigenous staff of the company.

  It was discovered that while the expatriate staff are paid handsome remunerations, their Nigerian counterparts with better qualifications and technical experience are given paltry sums at the end of every month.

  A staff, who pleaded anonymity, told The Tide last week, that this poor salary and welfare issues against the indigenous workers was the major reason why a former managing director of the company was forced to resign following his criticism of the maltreatment and poor remunerations of the Nigerian staff.

  The Tide investigations indicate that kidnappers, who abducted some workers of Indorama a few years ago, also gave poor salaries and welfare as well as maltreatment of Nigerian staff of the company as major reasons why they struck.

  However, some of the workers, who spoke with The Tide, accused the NUPENG and PENGASSAN executives of conspiring with Indorama management to shortchange them, and threatened to stage a protest this week, should the management fail to heed their calls for improved welfare and enhanced salaries.

  When our reporter visited Indorama last week, the worried workers were seen in groups discussing the ugly situation, and perfecting their strategy for the impending industrial action.

  The workers, according to one of the union leaders, may block the main gate of the company as a means of stopping others, especially others loyal management, and visitors, from entering the premises.

  Attempts to extract official positions of the executives of both unions proved abortive as they were said to be in series of meetings with representatives of the management.

  A member of Indorama’s management, who pleaded anonymity, confirmed that there has been a raging disagreement between the workers and the management over salary and welfare issues, but stated that the management was doing everything possible to resolve the imbroglio.

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Oil & Energy

NERC, OYSERC  Partner To Strengthen Regulation

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THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.
It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).
The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.
Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.
He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.
Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.
Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.
“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.
He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.
“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.
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Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

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The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.
NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.
In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.
“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.
Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.
She feared the longstanding conflict could result in the eventual collapse of the country’s power.
According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.
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Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance  ……… Seeks PIA Review 

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The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).
President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.
Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.
The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.
In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.
He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.
Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.
He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.
Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.
“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.
He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.
“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..
According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.
“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.
Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.
“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.
Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.
“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.
According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”
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