A constitutional lawyer, Temilolu Ademolekun, has instituted a suit before a Federal High Court in Lagos, Nigeria challenging the constitutionality of Regulation 15A of the Petroleum Amendment regulation of 1988 and the ministerial guidelines for the release of staff in the Nigerian Oil and Gas industry.
In a motion on notice filed before the court, Ademolekun is seeking an order of interlocutory injunction directing the defendants to suspend the enforcement of the provision of Regulation 15A of the Petroleum Amendment regulation of 1988 and the guidelines for the release of staff in the Nigerian Oil and Gas industry pending the determination of the substantive suit.
Respondents in the suit are the Minister of Petroleum Resources, Department of Petroleum Resources and the Attorney General of the Federation (AGF).
In an affidavit in support of the suit deposed to by the lawyer, he averred that Regulation 15A of the Petroleum (Drilling and Production) (Amendment) Regulations1988 provides that the holder of Oil mining lease, licence or permit issued under the Petroleum Act or regulations made or any person registered to provide any services in relation thereto, shall not remove any worker from his employment except in accordance with the guidelines that may be specified from time to time by the minister.
According to the guidelines, staff release means the removal of a worker in a manner that permanently separates the worker from the employer. Instances of staff release shall include the following: Dismissal, retirement, termination, redundancy, release on medical grounds, resignation, death and abandonment of duty post.
However, pursuant to the aforesaid regulation, the Minister of Petroleum and the Department of Petroleum Resources codified the guidelines for the release of staff for the companies with Oil licences, permits or those registered to provide any services in relation to the Nigerian Oil and Gas industry, 2019.
“Any employer who wishes to release a worker shall apply in writing to the Director for the minister’s approval stating the manner of staff release, the reasons for the proposed release, the compensation due to the worker, and any proposed replacement for the worker.
“The application shall contain a copy of any document relevant to the worker’s employment including the employer’s condition of service as defined under these guidelines.
“Where the employer fails to submit any required information to the Department of Petroleum Resources, such application for staff release shall not be eligible for the minister’s approval,” the lawyer further averred
Temilolu Ademolekun argued that the Regulation and the guidelines are inconsistent with relevant provisions of the 1999 constitution of the Federal Republic of Nigeria (As Amended).
Recall that in the wake of the deadly COVIC-19 Pandemic, there was sudden global crash in the crude oil prices and a lot of companies particularly in the Oil industry struggled to operate, and even Oil producing countries were hit by the economic realities.
Several companies took major decisions such as downsizing their staff strength to enable them survive the trying times.
The Petroleum Minister and the Department of Petroleum Resources made regulations and guidelines that are outside their powers; to limit the right of employers who have oil mining licence, notwithstanding the contract of employment between the employer and the employee.
The guidelines also prescribed a fine of $250,000 against any company that contravenes the guidelines in releasing its workers.
Ademolekun further stated that the Minister of Petroleum and the Department of Petroleum Resources are not the National Assembly that is empowered to make laws and are not the National Industrial court that has jurisdiction over matters relating to employer and employees.
Consequently, he submitted that it will be in the interest of justice and the doctrine of separation of powers for the court to order the defendants to retract the unconstitutional parts of the Regulations and Guidelines.
He urged the court to grant his prayers.
