PENGASSAN, NUPENG Under Fire Over Alleged ₦120bn Salaries on Idle Refineries
Public debate has intensified after economic and financial analyst Nnaemeka Obiaraeri claimed that members of Nigeria’s major oil workers’ unions — the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) — had been receiving as much as ₦120 billion in salaries annually from the nation’s non-functional refineries.
Speaking on TVC’s Breakfast Show, Obiaraeri described the situation as unsustainable and a major drain on Nigeria’s economy.
According to him, the unions continued to draw huge wage bills even while the country’s four government-owned refineries remained largely comatose for years without producing refined petroleum products.
He argued that the practice highlighted the inefficiencies and entrenched interests that have kept Nigeria dependent on fuel imports, despite being one of the world’s leading crude oil producers.
“We cannot continue to spend billions on dead assets and expect progress. This is economic sabotage in broad daylight,” he said.
The remark has stirred controversy, with critics pointing out that ordinary Nigerians continue to endure high fuel costs, subsidy-related distortions, and inflation while billions of naira are allegedly spent maintaining facilities that add no value.
The unions, however, have consistently rejected claims that they are responsible for the rot in the refineries.
PENGASSAN and NUPENG maintain that poor government policies, mismanagement, and lack of sustained investment are the real reasons Nigeria’s refineries have remained moribund.
They argue that workers should not be made scapegoats for systemic failures in the oil and gas sector.
Analysts say Obiaraeri’s comments reflect growing public frustration with the management of Nigeria’s oil industry. With the country still waiting for the long-delayed rehabilitation of its state-owned refineries and the Dangote Refinery now a central part of the national energy discussion, questions about accountability, waste, and reform remain urgent.
The allegation of ₦120 billion yearly spent on salaries for idle refineries has once again renewed calls for transparency in the oil sector, restructuring of the unions’ role, and a broader rethink of how Nigeria manages its critical energy infrastructure.
