Kehinde Fajobi
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has raised concerns over certain provisions of the Tax Reform Bills, fearing they could negatively impact the Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA).
At the National Executive Council (NEC) meeting in Abuja, PENGASSAN president Comrade Festus Osifo urged the government to expand tax exemptions for workers earning minimum wage and businesses.
He also requested clarity on revenue collection processes from oil and gas companies.
“Clarity must be provided regarding revenue collection processes from oil and gas companies, as some provisions in the bill have the likelihood of negatively impacting our members,” Osifo said.
Osifo called for a proper public hearing session, emphasizing that different views should be collated to amend the provisions in the bill.
He warned against the National Assembly hurrying the passage of the bill without sufficient consultation.
On the reactivation of the Port Harcourt refinery, Osifo confirmed it was operational, despite doubts surrounding its functionality.
He explained the production process, noting that while the refinery is producing aviation fuel, kerosene, and diesel, some processes, such as the reformat unit, are not yet operational.
“Really, from our checks, the Port Harcourt refinery is actually working,” he stated.
Osifo acknowledged the progress made but also called for more focus on the refineries’ rehabilitation and future privatisation.
He commended the Nigerian National Petroleum Corporation Limited (NNPCL) for the rehabilitation efforts, stating that PENGASSAN will continue to push for the rehabilitation of the remaining refineries.
The union leader also addressed the influx of expatriates, particularly from India, in the Nigerian oil and gas industry, urging the government to protect local workers.
“We demand strengthening our regulatory mechanisms and enforcing the regulations to promote local content,” Osifo said.
Additionally, Osifo urged the government to implement the Petroleum Industry Act (PIA) provisions for host communities, highlighting environmental degradation and lack of infrastructure in oil-producing areas.
“We hereby call for a 100% implementation of the provision of host communities in the Petroleum Industry Act,” he said.