Refinery
By Olayiwola Mercy
PENGASSAN, the Petroleum and Natural Gas Senior Staff Association of Nigeria, is advising the Federal Government not to sell 100% stake in the country’s refineries. Instead, they recommend divesting majority control, with the government retaining 49% and private partners holding 51%, similar to the NLNG model. This, they believe, will ensure efficient management and operation of the refineries.
The association argues that years of political interference have crippled refinery operations, and private sector expertise is needed to turn things around. PENGASSAN’s National President, Festus Osifo, stated that the union is not opposed to privatization but wants it done strategically to benefit Nigerians. He emphasized that selling 100% stake would be a mistake, as it would lead to job losses and undermine the country’s energy security.
PENGASSAN also emphasizes the importance of local content, urging the government to strengthen regulatory mechanisms and enforce laws to promote Nigerian participation in the oil and gas industry. They want the government to ensure that local refineries are given priority in crude oil allocation, and that downstream infrastructure is developed to support the growth of the industry.
The union is also concerned about the impact of privatization on employment and the economy. Osifo warned that if the refineries are sold to foreign investors, it could lead to massive job losses and undermine the country’s economic development. He called on the government to consider the welfare of Nigerian workers and the long-term implications of the privatization process.
PENGASSAN’s stance is in line with concerns raised by other stakeholders, who argue that the government’s privatization plans lack transparency and may not benefit Nigerians. The association is calling for a more inclusive and consultative approach to the privatization process, ensuring that the interests of all stakeholders are taken into account.
