Rareview EnergyDesk
Operations at the Lagos office of Shell Nigeria Exploration and Production Company Limited (SNEPCo) were disrupted on Tuesday after workers staged an early morning protest, barricading the company’s Broad Street premises in a dispute over pay and employment conditions.
The protest, organised by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), saw workers blocking access to the building and restricting entry of vehicles, including those belonging to senior management officials.
Eyewitnesses said the demonstration began at dawn and quickly drew the attention of commuters and passersby in Lagos Island’s busy commercial area. Traffic around the area slowed as pedestrians stopped to watch the unfolding labour action.
Union members said the protest was triggered by what they described as persistent pay disparities between Nigerian staff and expatriate workers, as well as policies that they believe do not adequately reflect Nigeria’s economic realities.
According to a flyer circulated by the union and seen by reporters, employees accused the management of SNEPCo of practising “modern-day slavery” through what they called discriminatory remuneration policies and working conditions.
“We are against the application of a global pay policy in Nigeria without consideration for local peculiarities,” they stated, adding that the company’s internal compensation framework—known as “Best-in-Basin”—has resulted in cost-cutting measures that workers say have eroded staff welfare.
One protesting staff member, who spoke on condition of anonymity, cited the company’s vehicle loan as an example of what workers consider outdated compensation.
“Can you imagine a company giving a staff member ₦1 million to buy a car now?” the employee said. “Yes, ₦1 million could look like a huge sum, but it can’t even get you a tricycle, not to talk of a car.”
Workers also alleged that expatriates were increasingly occupying roles traditionally held by Nigerian professionals, a trend they claim has created frustration within the workforce.
“Many of our colleagues classified as senior Nigerian staff are under heavy pressure,” another worker said. “Poor pay, stress, debt burden and constant restructuring are taking a toll.”
The protest temporarily prevented vehicles from entering the office complex, although some staff were initially allowed inside before demonstrators reversed the decision and tightened access restrictions.
The labour dispute comes at a sensitive time for Shell’s operations in Nigeria. In recent years, the global energy major has been restructuring its local portfolio, including divestments from some onshore assets as part of a broader shift toward deepwater and gas projects.
Industry observers note that the company’s Nigerian business footprint has evolved significantly. Its local operations include interests linked to energy investment and development ventures such as AllOn and Daystar Power, which focus on financing and expanding energy infrastructure and renewable power solutions.
Workers, however, say the restructuring has not translated into improved welfare for local employees.
Union members also pointed to the company’s reduced participation in industry events as evidence of cost-cutting measures. At the Nigeria International Energy Summit held in Abuja earlier this year, SNEPCo did not appear as a major sponsor and sent only a limited delegation, according to industry sources.
Other major operators, including Nigeria LNG Limited (NLNG), TotalEnergies, and Chevron Nigeria Limited (CNL), were fully represented at the conference.
Labour leaders argue that management has been slow to address concerns raised through internal channels, prompting workers to take their grievances public.
“We had to barricade the office because management has refused to listen,” one staff member said. “The government needs to intervene. The company feels nobody can hold them accountable.”
Another employee suggested that remote work arrangements introduced in recent years had made it more difficult for workers to mobilise collectively.
“Many staff now work from home on certain days, so gathering everyone together for action is not easy,” the employee said. “Management may believe this limits our ability to organise.”
Efforts to obtain an official response from SNEPCo have not been unsuccessful.
The protest highlights broader tensions in Nigeria’s energy industry, where labour unions have increasingly pushed for stronger protections for local workers and greater alignment between multinational corporate policies and the country’s economic realities.
For Nigeria—Africa’s largest oil producer—the stability of relations between international oil companies and their workforce remains critical to sustaining investment and maintaining production levels in an industry that continues to anchor the nation’s economy.