TUC President: Attract more refinery investors to drive down fuel prices

Charles Okonji

President, Trade Union Congress (TUC) and immediate past President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Osifo, has warned that plans by downstream petroleum regulators to cap the prices of petroleum products could scare away investors and undermine confidence in Nigeria’s deregulated downstream sector.

Osifo said rather than imposing price controls, the government and regulators should focus on creating an environment that promotes healthy competition among operators in the petroleum industry.

He made the remarks while speaking with journalists at a homecoming dinner organised in his honour by PENGASSAN at the Wheatbaker Hotel in Lagos on Monday night.

According to him, increased competition among petroleum industry players would ultimately benefit consumers by encouraging operators to offer products at competitive prices.

He explained that investors would naturally seek reasonable returns on their investments, stressing that attracting more players into the sector would create the competition required to moderate prices.

Osifo said, “I think that price capping will come with greater challenges. If we focus on price capping, we are going to drive away investors. For now, what the government should focus on is how to ensure healthy competition among the players.

“When we have competition, it naturally brings down prices. What the regulator should do is to go and source more investors. Source for people to build refineries, both modular and bigger refineries, so that they can compete, most especially with international prices.”

He added that achieving sustainable and fair energy pricing required comprehensive reforms across the upstream and midstream segments of the petroleum industry rather than blanket price controls that could distort market dynamics.

The TUC president urged the government to prioritise policies capable of attracting investors into refinery development and other critical areas of the petroleum value chain.

He said encouraging investment in modular and large-scale refineries would increase domestic refining capacity and create stronger competition among operators.

According to him, a competitive market would provide a more sustainable mechanism for moderating petroleum product prices than administrative price controls.

He maintained that regulators should focus on ensuring a level playing field, preventing anti-competitive practices and creating conditions that would encourage new investors to enter the sector.

Reflecting on his six-year tenure as PENGASSAN president, Osifo said one of the major achievements of his administration was the protection of members’ jobs during the divestment of assets by international oil companies (IOCs).

He said no member of the union lost his or her job as a direct consequence of the transfer of oil and gas assets to new investors.

According to him, PENGASSAN not only protected workers from job losses arising from ownership changes but also ensured that their remuneration was maintained and improved.

He said the achievement was significant against the backdrop of the extensive restructuring taking place in Nigeria’s oil and gas industry.

“The union had not only protected workers from job losses arising from the ownership changes but also ensured that their remuneration was maintained and improved

“This development represented one of the major achievements of the leadership of the union, particularly against the background of the significant restructuring taking place in Nigeria’s oil and gas industry,” he said.

Osifo explained that the divestment wave involving major international oil companies had generated concerns about the fate of workers as assets changed ownership and new investors assumed control of operations.

He said PENGASSAN deliberately engaged both outgoing and incoming operators to ensure that workers were not treated as casualties of the industry’s restructuring.

“The divestment wave involving major international operators had created concerns over the fate of workers as assets changed ownership and new investors took control of operations.

“But PENGASSAN deliberately engaged the outgoing and incoming operators to ensure that workers were not treated as casualties of the industry’s restructuring,” Osifo stressed.

The immediate past PENGASSAN president described job protection and improved remuneration as two of the key measures by which the performance of the union’s leadership should be assessed.

‘We Never Abandoned Our Branches’
Osifo also said his administration deliberately maintained close contact with members at the branch level, particularly during negotiations over Collective Bargaining Agreements (CBAs).

He explained that the leadership ensured that members were adequately represented during negotiations and other engagements affecting their welfare.

“Because of each of their Collective Bargaining Agreements, if the people don’t see me there with them, they will see the zonal chairman there with them. So, they saw that leadership where we worked with them closely.

“We never abandoned any of our branches. We worked with them closely to bring about the level of remuneration that we have in the oil and gas industry,” he said.

Bouyer Commends Osifo’s Leadership
Also speaking at the event, the Managing Director/Chief Executive Officer and Country Chair of TotalEnergies, Mr Mathieu Bouyer, expressed his appreciation for Osifo’s contribution to the company, PENGASSAN and the wider Nigerian oil and gas industry.

Bouyer said he was delighted to attend the occasion, describing Osifo as a great leader whose contributions would continue to be remembered.

“When I think about everything that has been said, I just have to say that I recognise the great leader you’ve been in the past decade or even more,” Bouyer said.

He noted that his three years of working with Osifo had brought considerable progress to TotalEnergies, particularly in the resolution of critical issues through dialogue and negotiation.

According to him, disagreements between employers and workers’ representatives could be resolved when both parties remained open to compromise.

“I think there is something important: in life, even when we don’t necessarily have the same forces and powers behind us, there is always a way and room to find compromise. And for that, I thank you,” he said.

Bouyer also recalled the role TotalEnergies played in supporting Osifo’s emergence as PENGASSAN president, saying the company believed he would carry the values of the organisation into his leadership of the union.

He particularly highlighted the value of care for people, saying Osifo’s leadership demonstrated concern for workers and their welfare.

“One of them is care, and I have to say that a lot of what is coming from the speeches tonight is that you are caring for the people. And at the end of the day, it’s the value of Total, it’s the value of caring for the people,” Bouyer said.

He said TotalEnergies had maintained a long-term commitment to Nigeria, stressing that the company’s contribution went beyond oil and gas production and payment of taxes.

“Total is a company which, I would say, has been in Nigeria for decades, more than 60 years, and we are here for the coming 60 years or more,” he said.

“We are not just here to invest in assets, produce oil and gas, and pay taxes. We are here also to contribute to the long run, through social actions, but also through the leadership we produce.

“We don’t only produce oil and gas; we produce talents.”

Bouyer said Osifo was among the people who had risen through the industry to occupy significant leadership positions in both PENGASSAN and the TUC.

He added that the presence of retirees who travelled from different locations to attend the event demonstrated the quality of relationships Osifo had built throughout his career.

“Seeing retirees coming from far away to be able to attend this programme shows the quality of person Osifo is,” he said.

Earlier in his opening remarks, the TotalEnergies E&P Branch Chairman of PENGASSAN, Comrade Rabiu Abdulhameed, described the event as a celebration of Osifo’s legacy rather than a farewell.

He described it as a homecoming to honour what he called one of the most influential leaders in the history of PENGASSAN and to recognise his contributions to the union, the TUC and Nigeria’s oil and gas industry.

Abdulhameed said PENGASSAN became stronger, more respected and more influential under Osifo’s leadership.

He said Osifo elevated Collective Bargaining Agreements across more than 100 branches nationwide, strengthened workers’ welfare, promoted local capacity development, created and protected jobs, and ensured that PENGASSAN remained a respected voice in national discourse.

According to him, Osifo’s leadership produced what members had come to describe as “Osiforisation”, a philosophy anchored on courage, strategic thinking, workers’ welfare, institutional strength, inclusiveness and service.

“Indeed, his tenure gave birth to what many of us proudly describe today as ‘Osiforisation’, a leadership principle anchored on courage, strategic thinking, workers’ welfare, institutional strength, inclusiveness and service.

“It is a philosophy that challenges leaders not merely to occupy positions, but to leave institutions stronger than they met them,” Abdulhameed said.

He also referred to the economic dimension of Osifo’s leadership as “Osifonomics”, which he described as a practical demonstration of purposeful leadership, strategic negotiation and unwavering commitment to workers’ welfare during difficult economic periods.

“The economic impact of his leadership also produced what we now fondly call ‘Osifonomics’. This refers to practical demonstration of purposeful leadership, strategic negotiations and unwavering commitment to workers’ welfare even during the most difficult economic periods,” he said.

Abdulhameed said many PENGASSAN members experienced improvements in welfare, workplace safety, purchasing power and economic stability through initiatives and negotiations undertaken during Osifo’s tenure.

He added that the concepts of “Osiforisation” and “Osifonomics” had become, for many members, enduring leadership principles and part of Osifo’s legacy.

Abdulhameed also highlighted Osifo’s personal contributions to workers and communities, describing him as a leader who touched lives through generosity, philanthropy and concern for people.

He specifically cited the PENGASSAN Foundation as one of the initiatives associated with Osifo’s leadership.

According to him, the foundation expanded PENGASSAN’s impact beyond workers’ welfare by supporting communities through education, healthcare, empowerment and other social interventions.

He said the initiative demonstrated that effective trade union leadership should extend beyond the immediate interests of members to include broader contributions to society.

The event brought together current and former PENGASSAN officials, industry stakeholders, retirees and other dignitaries who paid tribute to Osifo’s years of service and leadership in the Nigerian oil and gas sector.