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Oil Workers And Industrial Action

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Oil company workers under the aegis of the Petroleum and National Gas Senior Staff Association of Nigeria (PENGASSAN) recently issued a sevenday ultimatum  to the Rivers State Government and the management of VAM Onne Nigeria Limited, to either resolve the industrial relations crisis in the  company or have all oil and gas operations shut down indefinitely. The workers alleged that the company in collaboration with some politicians sponsored thugs numbering over 15 armed with dangerous weapons to harass, manhandle, assault them and disrupted the peaceful protest organised by PENGASSAN, Port  Harcourt Zone against the management of VAM Onne Nigeria Limited.

In a petition addressed to the Rivers State Governor, Rt Hon Chibuike Rotimi Amaechi dated February 8, 2012 and signed by the Assistant General Secretary of PENGASSAN, Port Harcourt Zone, Mr Sunday Onyenachi, the workers said,” as a result our National Secretariat has directed that after seven days, with effect from February 9, 2012, there will be a complete shutdown of all oil and gas operations in Rivers State.  If thereafter, the matter is not resolved within the period, the entire 10 states in Port Harcourt Zone including Abia, Akwa Ibom, Anambra, Bayelsa, Enugu, Imo and Rivers State will follow suit and this will escalate the crisis.”

They alleged that the  country Manager of VAM Onne, Mr Engene Fogli victimised 27 PENGASSAN members who have been locked out for over  three months without salaries. The workers accused the  VAM manager of  engaging in anti-union activities ranging from intimidation, harassment, lockout, victimisation and enslavement of Nigerian workers, flagrant abuse of our extant labour laws and release of Nigerians from employment without clearance from the Department of Petroleum Resources (DPR). And more importantly, refusal to honour agreement which was reached at a meeting at the instance of Prince of Onne community, Prince (Dr) Jime Osaronu and Mr Sunday Dudu between the association and the management on November 15, 2011 at Novetel Hotel , Port Harcourt.

They also said Mr Fogli had started recruiting new staff to replace workers that were locked out because they exercised their fundamental rights to belong to trade union.

Similarly the independent Petroleum Marketers Association of Nigeria (IPMAN), Ilorin branch penultimate Saturday threatened that the association would withdraw its services with effect from Tuesday last week because the lives of its members were being threatened by vandals of petroleum pipelines.

Chairman of the association Alhaji Holaji Agbolade bemoaned a situation where those arrested for pipeline vandalism by the Police, State Security Serviced (SSS) and the Nigeria Security and Civil Defence Corps were not properly persecuted.

He said : “Pipeline vandalism is an economic sabotage, we are worried about a situation where suspects are arrested and released within a few days without prosecution! According to the association, “we will likely withdraw our services and fuel will not be sold at the Ilorin Depot to any filling station. He gave an instance where about two years ago, the police arrested five persons who were each sentenced to five years imprisonment by the Federal High Court but were released two weeks ago without completing their jail terms by another court and called for the re- arrest of the  convicted pipeline vandals.

All these came at the time when fuel tanker drivers embarked on their strike that triggered some days of petrol scarcity.

It is known that the prime function of trade unions the world over is to protect and improve the wages and working conditions of their members through collective action, whether by bargaining with the employers by promoting legislation. In fact, historically, one of the main reasons for the setting up of trade unions was that the workers might acquire a combined strength which would enable then to bargain more effectively with the employers and to replace the individual contract by a collective agreement.

In Nigeria, many employers and employees refuse to believe that this is what happens and they think that the collective agreements are fundamentally different in form and content from what obtains outside.

Another midely held belief is that the workers in Nigeria are not free to withhold their services if they are dissatisfied with their conditions of work.

Freedom of association does not merely imply the right of workers to form or join an organization and the right of that organization to have a legal existence. It also implies freedom for the organization to function. If freedom of association is to have its full value, the workers must be able to use their organization for collective action and must enjoy the right to strike if they regard their working conditions as unsatisfactory.

Another thing to be remembered is that the structure, functions and rights of the Nigerian trade unions cannot be properly appreciated unless the economic, political and social structure of the country is taken into account. Personal or group circumstance is less important in the case of the nation. The fact that the rights of oil workers are trampled on or tampered with as alleged by PENGASSAN and the IPMAN do not call for strikes that are not negotiated or dialogued before commencement. There are various methods for dealing with industrial disputes which were not adopted by the tanker drivers and oil workers in the current crisis.

The withdrawal of services by tanker drivers for about six days and the threats by the PPPRA, PENGASSA and IPMAN has resulted in enormous pressure on other sectors of the economy.

Oil workers should acknowledge the fact that the oil and gas industry is an important aspect of the nations economy and any action such as strike critically paralyses the economy and the movement of people.

Petroleum products distribution in Nigeria and Rivers State in particular in the past one week has continued to suffer from the negative effects of the marketers and oil workers. People are forced to pay exorbitantly for petroleum products  which also affects transport fares. The reputation of some oil workers and their managements has been battered by their failure to come to terms.

Regardless of what the issues are, citizens of the country and government are not happy with the situation in which they find themselves while the fuel scarcity lasts.

Cheap and effective business and services are no longer guaranteed in the country. This is why it is incumbent on the state and federal governments to seize the initiative and end this improfitable standoff once and for all.

The Tide learnt that the  Federal Government might have begun the process of calling a stakeholders meeting where some of the issues unearthed during the hearing on the subsidy claims by the National Assembly would be addressed with a view to checking the fuel scarcity.

The issues raised by IPMAN and the PENGASSAN concerning intimidation and other ill-treatments meted out to their members should be addressed just as perpetrators of pipeline vandalism should be treated according to the law as it concerns economic sabotage. Oil workers on their part should not in any way allow themselves to be used by anyone or group whatsoever to disrupt the distribution process of petroleum products.

Security agencies should take serious the issue of pipeline vandals because their activities are counter productive, especially now that there is the need for improvement in the allocation of petroleum products.

The Rivers State government would not wish to put itself in a position where it will be vulnerable to copycat strikes and it must be realised that the consequences of this quibbling have resulted in economic downturn and penury on the citizens.

When two elephants fight, the resultant effect is always on the grasses. While the oil workers or tanker drivers argue over the fine points of their grievances, the citizens are suffering.

As the body charged with overall well-being of the citizens, government should endeavour to bring the strike and threats under control. The welfare of the people is simply too important to be put on hold through strikes. The companies managements should see reasons with their workers and give them what they want if their demands are genuine.

There should be evidence of  faith in the demands of the workers and it must be obvious that they are making a point. There is the need for negotiations between the government, company managements and the workers to find solution to the situation.

The Nigeria National Petroleum Corporation (NNPC) alleged the fear of petroleum products scarcity as it claimed that Nigeria still has over 35 days sufficiency and more importers of petrol are in the business, so people should  face what they are licensed to do rather than causing artificial scarcity of fuel.

There are many issues involved in the  petroleum sector reform which need to be addressed. Insecurity in the nation’s high seas is one of the factors that bring about scarcity of petroleum products. Some oil companies have applied for as much as 160,000 metric tones but had not been able to get that quantity while some take their vessels to neighbouring countries such as the republic of Benin and Togo because of inadequate storage facilities at the country’s ports, so they have to split the products, which is a security risk because of the way pirates operate and the difficulty in the jetties.

As a way forward, there is need for re-classification of the oil companies  in a bid to effectively reposition the oil  industry. The dearth of facilities at our ports has also forced importers to use ports in neighbouring countries and there should be market forces to determine quality of fuel imported and the prices they are sold as an inspector  is made to oversee the quality and quantity of import.

 

Shedie Okpara

 

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Global Coal Consumption Hits Record Even As Coal Power Declines

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Global coal consumption reached another record in 2025, seemingly contradicting years of discussion about phasing out the world’s most carbon-intensive fossil fuel.
But the headline number does not tell the whole story.
The latest Statistical Review of World Energy shows that global coal consumption rose to 166.0 exajoules last year. That represented an increase of 0.7% from 2024.
At the same time, global electricity generation from coal declined. Coal-fired power production fell 0.3% to 10,511 terawatt-hours.
Those two trends are not mutually exclusive. Coal is used not only to generate electricity, but also in steelmaking, cement production, and other industrial processes. The divergence also reflects a changing geographic picture in which coal is declining across much of the developed world while remaining deeply embedded in Asia’s industrial economy.
A Record With Important Qualifications
Coal consumption reached a record in absolute terms, but it did not keep pace with overall energy demand.
Total global energy supply increased from 592.2 exajoules in 2024 to 600.3 exajoules in 2025, an increase of about 1.4%. Coal grew more slowly, so its share of the global energy mix slipped from 27.9% to 27.7%. Thus, despite the global record in coal consumption, coal lost a small amount of market share.
This pattern appears frequently during energy transitions. A fuel can continue growing in absolute terms even as faster-growing alternatives reduce its share of the total. With global energy demand still rising, losing market share does not necessarily mean declining consumption.
Renewable energy provides a relevant comparison. Renewable energy supply increased by nearly 10% in 2025, far outpacing coal. But the world’s appetite for energy was large enough to accommodate growth in renewables and another record for coal at the same time.
Coal Is Increasingly an Asian Fuel
The most striking feature of the coal market is its geographic concentration.
Asia Pacific consumed 138.1 exajoules of coal in 2025, accounting for 83.2% of the global total. China alone consumed 92.2 exajoules, or 55.6% of all the coal used in the world.
India contributed another 23.1 exajoules, representing 13.9% of global consumption. Together, China and India accounted for almost 70% of the world’s coal use. Add Indonesia, and the three countries consumed nearly 73% of the total.
This is why broad statements about a global coal phaseout can be misleading. Coal may be steadily retreating in Europe and North America, but its future is increasingly being determined in Asia.
Non-OECD countries accounted for 85.2% of global coal consumption in 2025. Their coal use has grown at an average annual rate of 1.9% over the past decade. OECD consumption, by contrast, has declined at an annual rate of 4.8%.
Europe consumed just 4.4% of the world’s coal last year. The European Union’s share was only 2.8%, following another 3.2% decline in consumption.
The global total therefore combines two very different stories. One is a long-term retreat from coal across much of the developed world. The other is coal’s continued importance to the large and growing economies of Asia.
One surprise in the 2025 data is that coal-fired electricity generation declined even as total coal consumption increased.
China generated 5,756 terawatt-hours of electricity from coal, down 1.1% from 2024. India’s coal generation fell 3.0% to 1,464 terawatt-hours. Since those two countries produce nearly 69% of the world’s coal-fired electricity, relatively small percentage declines can have a large effect on the global total.
Coal generation across Asia Pacific declined 1.2%, while Europe posted another 3.4% decrease. The European Union’s coal generation fell 3.6% and accounted for only 2.6% of the global total.
The divergence between consumption and power generation indicates that coal demand outside the electric power sector helped support the record. Coal consumption statistics include industrial uses that are not captured by electricity-generation totals. Changes in plant efficiency, coal quality, inventories, and measurement can also prevent the two series from moving in perfect alignment.
Whatever the precise combination, the result is notable. The world consumed a record amount of coal while producing less electricity from it.
The United States broke sharply with the broader developed-world trend in 2025.
U.S. coal consumption rose 10.4% to 8.7 exajoules. Coal-fired electricity generation jumped 13.1% to 804 terawatt-hours, while domestic coal production increased 4.4%.
In absolute terms, the increase in U.S. coal consumption was larger than the net increase for the entire world. U.S. consumption rose by about 0.8 exajoules, while the global total increased by roughly 0.7 exajoules. Declines in several other countries offset part of the American increase.
Still, this should not be mistaken for a return to coal’s former dominance in the United States.
U.S. coal consumption remains about 62% below its 2005 peak. Coal-fired generation is approximately 63% below its 2007 high, and production is about 54% below its 1998 peak.
The 2025 increase was substantial, but it occurred within a long-term structural decline. The United States still accounted for just 5.3% of global coal consumption and 7.7% of global coal-fired generation.
Global coal production remained near record levels at 180.8 exajoules, but it was essentially flat in 2025.
China increased production by 1.7% and supplied 52.4% of the world total. Its coal consumption was nearly unchanged, but its imports fell 10.1%. The combination suggests that increased domestic production displaced a meaningful amount of imported coal.
That shift helped push global coal trade down 3.1% to 35.3 exajoules. Indonesia, the world’s largest exporter, saw exports fall 7.4%. U.S. exports declined 11.5%, while Colombian exports plunged 21.3%.
Thus, record global consumption did not translate into record international trade. Much of the world’s coal is produced and consumed within the same countries, especially China and India.
The 2025 data support neither the claim that coal is disappearing nor the claim that the energy transition has stopped.
Coal use reached a record, but its share of global energy declined. Coal-fired electricity generation fell, but industrial and other uses kept total consumption elevated. Coal rebounded sharply in the United States but remained far below its historical peak. Europe continued to move away from coal, while Asia accounted for more than four-fifths of global demand.
The coal market is no longer one unified global story. It is a widening divide between countries that are steadily reducing their dependence on coal and countries where it remains central to electricity, industry, and economic development.
That divide is likely to continue defining the coal market for many years.
By Robert Rapier
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FG To Stop Electricity Subsidy Payments From 2027

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The Federal Government has announced plans to end electricity subsidy payments from 2027 as part of efforts to tackle mounting liabilities in the power sector.
 Minister of Power, Joseph Tegbe, disclosed this at a media interactive session , in Abuja, at the weekend.
Tegbe said  the Federal Government would phase out subsidies beginning from 2027, assuring Nigerians  the policy would not deprive citizens of the benefits currently enjoyed under the subsidy regime.
According to him, the proposed removal forms part of broader reforms aimed at ensuring the long-term sustainability of the electricity sector while tackling the financial challenges confronting the industry.
Tegbe explained that despite the planned subsidy withdrawal, there are no immediate plans to increase electricity tariffs, reassuring consumers that the government is not considering a tariff hike in the short term.
“The phase-out of electricity subsidies will begin from 2027. However, there are no immediate plans to increase electricity tariffs. Our goal is to build a commercially viable power sector while protecting vulnerable consumers.
“The Power Consumer Assistance Fund will play a critical role in cushioning the impact on vulnerable consumers as we implement these reforms,” the minister stated.
He pointed out that  implementation timeline and consumer protection measures would be unveiled as the reform process progresses, emphasizing that Nigeria’s electricity subsidy has remained a major fiscal burden.
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Firm unveils New Products For Oil Facilities 

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An oil servicing firm, Solewant Group, has unveiled protective coatings and paints to secure oil facilities.
The products, manufactured at its new plant, sited in Alode Eleme, Rivers State, comprise of paints and coating that aid durability of oil facilities.
The products included the Solguard Architectural Coatings range comprising emulsion, matt and silk paints; Solguard Industrial Protective Coatings, featuring red oxide metal primer and alkyd gloss enamel; Solguard Heavy-Duty Protective Systems, including zinc-rich epoxy primer, high-build epoxy coat and acrylic polyurethane; and the flagship Novaguard Premium Specialty Coatings, made up of 100 per cent solid epoxy, polyurethane and polyurea systems for heavy industrial applications.
Unveiling the paints, at the weekend, Minister of State for Petroleum Resources(Oil), Senator Heineken Lokpobiri, described the products as innovative and pledged  the federal government’s support  to indigenous companies.
Lokpobiri described Solewant’s products as milestone in Nigeria’s industrialisation drive and local content development.
“This is clear evidence of the growth, which shows that local service providers in Nigeria have developed over the past 15 years.
“I’m very happy today that I have the privilege to witness this plant that will not just service Nigeria, but will service the entire African continent”, the minister said.
Lokpobiri praised Solewant’s expansion into Namibia, saying it marked the beginning of broader opportunities for Nigerian companies across Africa’s energy sector.
“We are fully committed to supporting companies like Solewant Group. That is the only way we can grow this industry.
“The solution to Nigeria’s energy problem lies with Nigerians. Nobody will come from anywhere to solve our problems in Africa”, he said.
He noted that the company’s new manufacturing capability would help address one of Nigeria’s biggest oil production challenges by providing locally manufactured protective coating solutions for ageing pipelines.
“Our pipes are completely corroded, and we need solutions that Solewant is providing to address that problem. What you have done here is a Nigerian solution to the Nigerian problem”, he said.
Speaking at the occasion, Solewant Group Chief Executive Officer, Solomon Ewanehi, said the investment was driven by the vision of ending Nigeria’s dependence on imported industrial coatings while building globally competitive manufacturing capacity.
In his words, “today we are not just launching the Solewant Coating Manufacturing Plant. We are launching confidence; confidence that Nigeria has the competence, the capacity and the courage to manufacture not just what we consume but also what we can export to compete with international standards.”
Ewanehi explained that the company unveiled 11 enhanced coating products under the Solguard and Novaguard brands, developed and manufactured in Nigeria for the oil and gas, marine, infrastructure and industrial sectors.
“Sixteen years ago, we asked a simple question: Why should Nigeria, a leading oil and gas nation, continue to import the very coatings that protect our critical assets?
“Today, that vision has become steel, concrete, plant and people”, he stated.
According to him, the products were designed to deliver world-class corrosion protection for pipelines, offshore platforms, refineries, storage tanks, bridges, power plants and other critical infrastructure operating in harsh environments.
Also speaking,  Secretary to the Government of the Federation, Senator George Akume, described the project as “a powerful statement of confidence in Nigeria” and applauded Solewant for expanding local manufacturing despite ongoing economic reforms.
Represented by the his Special Adviser on Technical Matters, Prof Bolaji Babatunde, Akume said “your  decision to expand manufacturing capability, develop technology and create value within Nigeria is a commendable example of the kind of private sector leadership that the Federal Government seeks to encourage me”.
Rivers State Governor Siminalayi Fubara, represented by his Chief of Staff, Barr. Sunny Ewuhle, also commended the company for choosing Rivers State as its industrial base.
“We are calling on all local and foreign investors to emulate what Solewant Group has done in Rivers State,” he said, pledging the state’s support for manufacturing, local content development and industrial growth.
Namibia’s High Commissioner to Nigeria, H.E. Walde Natangwe Ndavishiya, described the investment as timely, saying Solewant was well positioned to support Namibia’s emerging oil and gas industry.
“I particularly commend Solewant Group for taking the bold step of establishing a branch office in Namibia. This demonstrates confidence in Namibia and its emerging opportunities,” he stated.
By: Kevin Nengia
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