Members kick as PENGASSAN directs annual salary deduction to fund CSR foundation

PENGASSAN said the deduction would be made once a year and applied to funding the activities of the PENGASSAN Foundation.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has directed oil and gas companies to begin an annual salary deduction from its members to fund the activities of the PENGASSAN Foundation, its Corporate Social Responsibility (CSR) arm.

However, the directive has sparked resistance among some union members.

In a circular dated 8 December and signed by the Acting General Secretary, Jerry Amah, the directive was addressed to “all managements” in the oil and gas sector.

The union said the decision was taken by its National Executive Council (NEC) at a virtual meeting held on 15 June and reaffirmed at a follow-up meeting at the Transcorp Hilton Hotel, Abuja, on 4 December.

Under the directive, employers are to deduct either 1.5 per cent of consolidated monthly salaries or 3 per cent of basic monthly salaries, as applicable, from PENGASSAN members, beginning with their January 2026 salaries.

PENGASSAN said the deduction would be made once a year and applied to funding the activities of the PENGASSAN Foundation.

“This deduction will be made once a year and used to fund the activities of PENGASSAN Foundation, our Corporate Social Responsibility (CSR) outfit,” the union stated.

The association also provided remittance details, directing that the deducted funds be paid into the foundation’s account, number 1229855163, domiciled with Zenith Bank.

It urged all managements to support the initiative, saying the foundation aims to expand its social impact.

“We count on your usual support as we strive to touch more lives and empower communities,” the union said.

Complaints

The directive has, however, triggered discontent among some members of the union, who have filed an official complaint with Abiodun Essiet, a Senior Special Assistant to President Bola Tinubu on Community Engagement (North Central).

On Tuesday, Mrs Essiet confirmed to PREMIUM TIMES that she had received a complaint from some federal government workers under the union and that the matter had been forwarded to the Ministry of Labour and the plPresidency for necessary action.

“Yes, I have forwarded their concerns to the Ministry of Labour and the Presidency for further action,” she said in an interview.

According to a report, the aggrieved workers argued that the directive contravened Section 5 of the Nigerian Labour Act, which regulates deductions from workers’ wages.

They also maintained that the proposed CSR deduction did not fall within the category of mandatory statutory deductions and therefore requires explicit individual consent.

Based on this, the affected workers have appealed for urgent intervention to review the legality of the proposed deduction, warning against what they described as coercion and intimidation of federal government employees.

They also demanded that the union leadership ensure full compliance with the provisions of the Nigerian Labour Act and other applicable labour regulations.

PENGASSAN is one of Nigeria’s most influential labour unions in the oil and gas sector and an affiliate of the Trade Union Congress of Nigeria (TUC).

The union says its CSR interventions through the PENGASSAN Foundation typically focus on community development, education and social welfare initiatives.

In September, the union’s nationwide strike due to the crisis between Dangote Petroleum Refinery and Petrochemicals disrupted major oil and gas operations in the country.

It also led to a resurgence of black market petrol sellers in Abuja, Nigeria’s capital city. The union shelved its industrial action only after a resolution was reached in October.