KEY POINTS
- PENGASSAN wants sustained investment and stronger policies to expand Nigeria’s domestic refining capacity.
- The union says refineries such as Dangote and Waltersmith need greater policy protection to support energy security and economic growth.
- It also called for faster regulation, expanded gas infrastructure and stronger protection of workers’ rights.
The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has called for sustained government policies and increased private-sector investment to expand Nigeria’s domestic refining capacity and strengthen the country’s oil and gas industry.
The association also urged authorities to provide stronger protection for refineries operating in Nigeria, including the Dangote Refinery and Waltersmith Refinery, as part of efforts to reduce the country’s dependence on imported petroleum products.
The demands were contained in a communiqué issued at the conclusion of the three-day PENGASSAN Energy and Labour Summit (PEALS 2026), signed by the association’s President, Festus Osifo, and General Secretary, Jerry Amah.
PENGASSAN said Nigeria must move away from the inefficient cycle of exporting crude oil and importing large quantities of refined petroleum products.
According to the association, expanding domestic refining would allow the country to capture more value from its crude resources, conserve foreign exchange and create additional employment opportunities.
It said a stronger domestic refining industry would also stimulate investment across related sectors, including petrochemicals, gas processing and other downstream activities.
PENGASSAN stressed that the success of Nigeria’s petroleum sector should not be judged solely by the volume of crude oil produced, but by the extent to which the industry generates jobs, develops Nigerian expertise, delivers projects and creates sustainable economic value.
Refineries need policy protection
The association specifically called for the protection of domestic refineries, arguing that facilities such as Dangote Refinery and Waltersmith Refinery are strategically important to Nigeria’s energy security and economic development.
PENGASSAN said a supportive policy environment would be critical if the country is to attract the long-term investment required to increase refining capacity and develop additional value chains around crude oil and natural gas.
It also warned that frequent policy changes, overlapping responsibilities among government agencies, repeated approval processes and conflicting directives could raise operating costs and discourage investors.
PENGASSAN called for reforms that would make regulatory processes faster, clearer and more predictable.
The union advocated greater use of digitalised regulatory systems and clearly defined approval timelines, saying regulatory effectiveness should be assessed by its ability to support investment, production, government revenue and employment.
It argued that the number of licences or approvals issued should not be the primary measure of regulatory performance. Instead, the focus should be on whether regulations translate into actual projects, increased production and broader economic benefits.
Beyond crude oil and refining, PENGASSAN called for an integrated strategy to develop Nigeria’s more than 215 trillion cubic feet of proven natural gas reserves.
The association said greater investment was needed in gas processing plants, pipelines, storage facilities and LNG, LPG and CNG infrastructure.
It also urged Nigeria to make more effective use of gas in power generation, manufacturing, transportation, fertiliser production and petrochemicals.
According to PENGASSAN, developing these areas could help Nigeria reduce energy shortages, support industrialisation and create new opportunities for employment and investment.
