Nigeria’s oil company fires 850 workers due to coronavirus impact
The laid off workers are mostly comprised of both skilled and unskilled contractors, including technicians from the refineries
The Nigerian National Petroleum Corporation (NNPC) has laid off approximately 850 workers, with a significant number of them working at refineries.
The move comes in the wake of market uncertainty due to the coronavirus pandemic.
The laid off workers are mostly comprised of both skilled and unskilled contractors, including technicians from the refineries.
NNPC employed more than 6,600 people as of May 2020.
Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) general secretary Lumumba Okugbawa was quoted Reuters as saying that the workers who have been fired include both skilled and unskilled contractors, who contributed to maintaining the oil refineries in the country.
Nigerian economy is dependent on the sales of crude oil for development
The job cuts are a major issue in Nigeria’s oil sector, often leading to stand-offs between the NNPC and unions.
Nigeria is dependent on crude sales to boost its economy, which is now at risk of facing severe recession due to the effect of coronavirus pandemic on global oil prices.
Nigeria is one the biggest producers of oil in Africa, with petroleum exports as major source of revenue. However, all of the country’s fuel supply is processed in other countries, at an elevated cost.
In August 2018, NNPC announced its plans to build two condensate refineries with a total refining capacity of 200,000 barrels per day.
The two refineries were aimed at increasing the nation’s revenue base and eliminate importation of petroleum products.