Onome Amuge
The Nigeria Employers’ Consultative Association (NECA) has raised concerns over ongoing industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), warning that the dispute could snowball into a major setback for the country’s economic recovery and dampen investor confidence.
Adewale-Smatt Oyerinde, the director-general of NECA, cautioned that while the right to strike is protected under both national law and international conventions, exercising that right outside established frameworks amounts to self-help and economic sabotage.
“Conflict is an inevitable feature of the labour ecosystem, and Nigeria has statutory and institutional frameworks designed to address disputes, including the Industrial Arbitration Panel (IAP) and the National Industrial Court of Nigeria (NICN). Any action capable of discouraging investment, undermining enterprise sustainability, or harming the very workers that unions claim to protect is counterproductive,” Oyerinde said.
The NECA DG described PENGASSAN’s approach as inconsistent with global labour norms, stressing that disruptions targeting enterprises not directly involved in the dispute are unacceptable. “Treating institutions of labour administration with disdain and resorting to self-help is not only absurd but also against all known conventions and recommendations,” he added.
Nigeria’s oil and gas industry, which accounts for more than 80 per cent of foreign exchange earnings, has long been vulnerable to industrial unrest. Analysts warn that at a time when the government is courting foreign direct investment and struggling to stabilise the naira, labour disruptions in the petroleum sector risk amplifying macroeconomic instability.
Oyerinde pointed to international labour instruments, including ILO Conventions 87 and 98, which affirm workers’ rights to organise and bargain collectively, but do not extend protection to coercion, sabotage, or actions that threaten national security. “While we acknowledge the right to strike, such rights cannot infringe on the rights of others or threaten the survival of enterprises,” he noted.
He also urged the minister of labour and employment to act decisively, warning that failure to enforce Nigeria’s industrial relations laws could weaken the country’s reform narrative and deter both domestic and foreign investors. “It is curious that Nigeria sends one of the highest delegations to the ILO Conference annually, yet basic industrial relations principles and conventions remain poorly applied,” he said.
NECA argued further that disruptions in the oil sector are particularly damaging. “Uninformed and disruptive actions that could jeopardise the nation’s economic survival are neither envisaged nor acceptable in global labour practice,” Oyerinde said.
He warned that continued disregard for lawful dispute resolution mechanisms could have far-reaching consequences for job creation, enterprise sustainability, and Nigeria’s ability to attract and retain investment. NECA reiterated its support for decent work and responsible business conduct, but said it would resist attempts to trample on employers’ rights or destabilise the economy.
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