PENGASSAN pushes for 51% sale of state-owned refineries
The Petroleum and Natural Gas Senior Staff Association of Nigeria has renewed its call for the Federal Government to divest majority shares in the nation’s state-owned refineries, recommending a structure similar to the Nigeria LNG model where government retains a minority stake while core investors hold controlling equity.
The National President of PENGASSAN and the Trade Union Congress, Festus Osifo, made the recommendation during an appearance on Politics Today on Channels Television, reiterating the union’s long-standing position that partial privatisation is necessary to enhance efficiency and commercial viability.
He said the union had consistently advocated selling at least 51 per cent equity in the refineries to experienced refiners rather than portfolio investors or politically connected individuals, arguing that such a move would depoliticise management and attract fresh investment.
“We have always advocated that the government should adopt the NLNG model in the refinery. The government should take a minority stake and sell at least 51 per cent to investors who are refiners, not just politicians or friends of the political class. Give it to private investors and let them make business decisions. But it should not be sold 100 per cent because of energy security,” Osifo said.
According to him, majority private participation would insulate refinery operations from political interference and allow commercially driven decisions that could restore profitability to the facilities.
He cited the Nigeria LNG ownership structure as a working example, noting that a consortium of ENI, TotalEnergies and Shell holds 51 per cent equity in NLNG while government retains a minority share.
Osifo also expressed support for the current management of the Nigerian National Petroleum Company Limited in its efforts to attract investors and restructure the refining segment.
His comments come amid renewed debate over the future of Nigeria’s refineries and wider oil and gas sector reforms following the commercialisation of NNPCL, with organised labour signalling conditional backing for majority private participation provided national energy security interests are protected.
