PENGASSAN demands refinery privatisation, urging government to sell 51% stake to core investors under NLNG model
The National President of the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Trade Union Congress, Festus Osifo, on Sunday renewed calls for refinery privatisation, urging the Federal Government to sell at least 51 per cent equity in Nigeria’s state owned refineries to core investors.
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Festus Osifo made the recommendation while speaking on Politics Today on Channels Television, advocating adoption of the Nigeria LNG Limited ownership structure.
Festus Osifo said the union had consistently pushed for partial privatisation over the past two decades, arguing that government dominance in ownership had undermined efficiency and commercial viability.
Festus Osifo explained that under the NLNG model, the government would retain a minority stake while divesting majority shares to experienced refiners rather than portfolio investors or politically connected individuals.
Festus Osifo insisted that at least 51 per cent equity should be sold to core industry players capable of injecting capital and expertise.
Festus Osifo cited the NLNG arrangement, where private oil majors hold majority shares, as proof that the model works.
According to Festus Osifo, majority private participation would depoliticise refinery management and encourage profitability driven by sound business decisions.
Festus Osifo expressed support for ongoing efforts by the Nigerian National Petroleum Company Limited to attract investors, but cautioned against a full divestment.
Festus Osifo said government should retain a minority interest to safeguard national energy security while insulating refinery operations from political interference.
The renewed push for refinery privatisation comes amid wider debate over reforms in the oil and gas sector following the commercialisation of the state oil company.
The position also follows remarks by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, who recently described the Dangote Petroleum Refinery as a symbol of technological audacity and national pride.
Bayo Ojulari made the comments during a landmark visit to the 650,000 barrels per day facility alongside members of the company’s board and executive management.
The Nigerian National Petroleum Company Limited currently holds a seven per cent equity stake in the privately owned refinery.
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The call by the Petroleum and Natural Gas Senior Staff Association of Nigeria signals organised labour’s conditional backing for refinery privatisation, provided that government retains a strategic minority stake to protect national interest.
