PENGASSAN Strikes Sterling Oil Over Expatriate Quota Abuse and Labor Violations

• September 27, 2025
• C Badenhorst
• 0 Comments

Background of the dispute

In early September 2025, members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) assembled outside Sterling Oil Exploration & Energy Production Company Limited’s Victoria Island office. By 6 a.m., chants echoed through the street, banners reading “Reinstate Sacked Nigerian workers” and “Stop CBA violation” swaying in the morning breeze.

Union president PENGASSN strike Festus Osifo led the crowd, demanding that Sterling Oil rectify what he described as a systematic abuse of Nigeria’s expatriate quota system. According to Osifo, the company employs more than 10,000 foreign nationals—predominantly from India—in positions that Nigerian professionals could fill, ranging from senior engineering roles to menial jobs such as gate‑keeping, vulcanising, tea‑making and cooking.

Osifo argued that these practices push qualified Nigerian workers into the background, undermining local capacity building and violating the spirit of the Collective Bargaining Agreement (CBA) that the union negotiated with the firm. “Our members in Sterling have been pushed to the background,” he said, urging management to publish the exact number of Nigerian managers currently on the payroll.

The protest forced Sterling Oil’s staff to work remotely, effectively shutting down on‑site operations. Management’s response was muted; attempts to interview company officials were rebuffed, and an anonymous spokesperson confirmed that employees had been instructed to work from home while talks continued.

Implications for Nigeria’s oil sector

The clash revives a long‑standing debate over foreign worker quotas in Nigeria’s oil and gas industry. The country’s quota policy is designed to protect local employment and foster the development of indigenous expertise. Critics argue that firms like Sterling Oil bypass the policy by outsourcing even low‑skill positions, thereby inflating the expatriate count and limiting opportunities for Nigerian professionals.

Key grievances articulated by PENGASSAN include:

• Poor working conditions for Nigerian staff, with reports of inadequate safety gear and sub‑standard welfare facilities.
• Repeated violations of the collective bargaining agreement, especially concerning wage scales and overtime pay.
• Dismissal of union representatives without due process, fueling accusations of anti‑labour intimidation.
• Lack of transparent dialogue with the union, despite multiple requests for negotiations.

These points were raised during a series of meetings that, according to media reports, culminated in a “constructive and amicable” agreement on 4 June 2025. That pact allegedly committed Sterling Oil to:

1. Comply fully with the expatriate quota regulations.
2. Invest in capacity‑building programs for Nigerian engineers and technicians.
3. Maintain ongoing stakeholder dialogue through a joint committee.

However, the September walk‑out suggests that either the agreement was not implemented or that its provisions were insufficient to address deeper structural problems. Union leaders claim that despite the June settlement, the company continued to favor foreign staff, leaving no room for Nigerian employees to advance into senior roles.

If the dispute escalates into a nationwide strike, the ripple effect could be severe. Nigeria’s oil sector accounts for roughly 10 percent of GDP and over 90 percent of export earnings. A prolonged shutdown would not only dent government revenue but also risk foreign investor confidence, especially at a time when the global energy market is already volatile.

Government officials have historically stepped in to mediate similar labor standoffs, recognizing the sector’s strategic importance. In June, the Federal Government facilitated negotiations that produced the temporary truce. Whether Lagos will intervene again depends on how quickly Sterling Oil can demonstrate genuine compliance with quota rules and address the union’s broader labour concerns.

For the thousands of Nigerian workers who depend on the oil industry for their livelihoods, the strike embodies more than a pay dispute—it is a fight for professional dignity and national economic sovereignty. As PENGASSAN prepares to mobilise its members across other oil firms, the outcome of this confrontation will likely set a precedent for how expatriate staffing is managed in Nigeria’s critical energy sector.