THE recent announcement that ExxonMobil, an International Oil Company (IOC) operating within Nigeria’s oil exploration sector, has fired 89 more of its workers brings home the sober truth that all is not well with the golden goose that is the source of much of the nation’s wealth.

The sackings are only the latest in a gale of retrenchments in the oil industry that have hit the country ever since the global downturn in oil prices in mid-2014 and the concomitant economic recession.

In December 2016, Exxonmobil had fired 150 of its Nigerian employees. A total of 3,000 oil workers were relieved of their jobs in October 2016, prompting a threat by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) to embark on industrial action.

In spite of the dispute over whether the sackings are warranted or not, it is heart-warming to see that the retrenched ExxonMobil staff were reportedly paid their entitlements in full. In contrast to what happens elsewhere in the country, these workers at least have the wherewithal to contemplate their futures with some hope.

Periodic retrenchments are an unavoidable fact of life in any economy, and the beleaguered oil sub-sector in Nigeria cannot be any different. Apart from the precipitous fall in world prices of crude oil, the country has witnessed crippling attacks by militants on oil installations in the Niger Delta, the accumulation of persistent inefficiencies in the management of the industry, and rampant corruption.

While it is obvious that many significant factors affecting the oil industry lie outside the control of the Federal Government, it is also true that some issues are well within its ability to rectify.

Perhaps the most important of these is the corruption that has so badly disfigured oil industry operations, especially as seen in the outrageous stories of sleaze which have continued to pour out of the Nigerian National Petroleum Corporation (NNPC) on a regular basis.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, must press on with his structural reforms of an organisation that is a byword for impunity, ultimately working towards the laudable goal of creating an oil corporation which is as profitable as any in the world.

Deep-rooted corruption has given rise to entrenched inefficiency. One of the most obvious manifestations has been in the nation’s persisting inability to meet its cash call payments, which in December 2015, totalled US $6.8 billion. Although the Federal Government cancelled this method of financing its 60 per cent equity in oil and gas exploration in November 2016, there is still the question of how it will attract the much-needed investment into the oil industry. Unless transparency and efficiency are restored to the sector, such financial inflows are unlikely.

Greater efficiency would also mean finding new buyers for the country’s oil and gas. It is particularly important that these products are utilised in greater quantities by local businesses. Apart from the country’s thermal power stations, there is no reason why more industrial concerns should not avail themselves of gas as a cheaper alternative to diesel as a source of power.

The continuous militant attacks on oil installations is being addressed with the seriousness that it deserves; Acting President Yemi Osinbajo’s visits to the Niger Delta and his meetings with the region’s leaders offer a vital glimmer of hope for renewed peace and harmony. However, these initial contacts must be followed through with comprehensive strategies to ensure that grievances are fully addressed.

As Nigeria works its way out of economic recession, the efficient utilisation of its oil and gas resources will be crucial to a sustained recovery. The nation must make sure that the reduction of redundancies in the oil industry is an important part of such plans.