The drop in world oil prices has dropped a veil of negativity over the Nigerian economy. From the stock market to the devaluation of the naira to government revenues, the economy has suffered massively. The negative consequences is not lost on the main street as jobs are now being lost in droves.
According to reports from the Nation, the oil industry has recorded no fewer than 6,000 technical workers have been sacked in the last eight months, following the fallen oil price.They include geologists, engineers, artisans, and fitters in the oil servicing firms.
According to the President, Petroleum Technology Association of Nigeria (PETAN), Emeka Ene.
“The oil servicing companies employ 20,000 technical workers, while the indirect workers are around 100,000. These are people that, by virtue of their services, do not have direct dealings with members of the Petroleum Technology Association of Nigeria. Thirty per cent of 20,000 will give us 6,000 plus.”
“At a point, oil servicing firms were directed by oil exploration and production companies operating in the country to reduce the cost of contracts by 30 per cent. By this, oil services firms are going to execute contracts at a rate or cost that is not beneficial to them. This is a loss, and everyone is now feeling the spiral effect of oil price plunge. Based on this, there is no way oil servicing firms would review their operations to be able to meet up in the industry,”