Industrial Relations in the Oil Industry in Nigeria

Working paper 237

The petroleum industry is the backbone of the Nigerian economy. Nigeria is the sixth largest producer of crude oil in the world. Its oil industry generates over 95 per cent of the country's foreign revenue, and about 80 per cent of government revenue. The oil industry alone creates over 65,000 direct jobs in Nigeria, and more than 250,000 jobs in non-direct employment. Most of the exploration and production of crude oil is concentrated in the Niger Delta. In order to promote social dialogue in the oil and gas industry in Nigeria, social partners share the responsibility of ensuring that good industrial relations, unity and productivity reign in the oil sector. Trade unions are encouraged to continue to take action to unionize workers, including contract and expatriate workers, and to promote capacity-building programmes for their members in order to foster social dialogue and democracy. Oil employers should support each other by uniting in one employers' organization, so that they might work together with their counterparts, as should the employers of national and multinational oil companies. One possibility is that the existing Oil Producers' Trade Sector could form the basis for an employers' organization in the oil industry.