KEY POINTS
- PENGASSAN wants government to sell at least 51% of NNPCL refineries to core investors.
- Union says NLNG model proves majority private ownership can work.
- Government should retain minority stake to safeguard energy security.
The Petroleum and Natural Gas Senior Staff Association of Nigeria has renewed its call for the Federal Government to sell a majority stake in the country’s state owned refineries, arguing that decades of full government control have failed to deliver efficiency or profitability.
Festus Osifo, National President of PENGASSAN and the Trade Union Congress, said the government should adopt the Nigeria LNG model by selling at least 51 percent equity in the refineries to core investors while retaining a minority share.
Osifo made the remarks on Sunday during an appearance on Channels Television’s Politics Today, where he laid out the union’s long standing position on refinery reform.
Union pushes NLNG ownership model
Osifo said PENGASSAN has advocated partial privatisation of the refineries for over 20 years. According to him, the present ownership structure has limited commercial viability and exposed operations to political influence.
He said the government should sell a minimum of 51 percent to investors who are established refiners, not portfolio investors or political associates.
The Nigeria LNG structure, he noted, provides a working example. In that arrangement, international oil majors including ENI, TotalEnergies and Shell collectively hold 51 percent, while the government retains a minority stake.
Osifo argued that a similar structure for the refineries would attract fresh capital, improve governance and allow professional management insulated from political pressure.
Majority private ownership, minority government stake
The union said it is not opposed to divestment. Rather, it supports majority private participation with clear safeguards.
Osifo maintained that the government should not sell its entire interest. Retaining a minority share, he said, is necessary to protect national energy security and ensure strategic oversight.
He stressed that private investors driven by business considerations are more likely to take decisions that improve efficiency and profitability.
He also welcomed signals from the current NNPCL management about plans to attract investors and reduce state dominance in refinery operations.
Debate intensifies as sector reforms continue
The renewed call comes amid ongoing debate about the future of Nigeria’s state owned refineries, many of which have struggled for years despite repeated rehabilitation efforts.
The discussion gained further momentum after comments by NNPCL Group Chief Executive Officer Bayo Ojulari, who recently praised the Dangote Petroleum Refinery as a symbol of technological ambition and national pride.
Ojulari visited the 650,000 barrels per day facility with members of the NNPCL board and executive management team. The state oil company holds a seven percent stake in the privately owned refinery.
Organised labour’s position reflects conditional support for deeper private sector involvement in refining. PENGASSAN insists that majority ownership by credible refiners could depoliticise operations and strengthen performance, while a retained government stake would preserve national interest.
The union’s proposal adds pressure on policymakers as Nigeria continues broader reforms in its oil and gas industry following the commercialisation of NNPCL and the push to reposition the sector for long term sustainability.
