By By Elizabeth Ugbo
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Sunday urged the Federal Government to sell at least 51 per cent of Nigeria’s state-owned refineries to core investors, while retaining a minority stake to protect energy security. The union’s National President, Festus Osifo, made the call during an appearance on Politics Today on Channels Television, following renewed debate over refinery reforms after the commercialisation of the Nigerian National Petroleum Company Limited (NNPCL).
PENGASSAN Backs Majority Private Ownership
Osifo said PENGASSAN has advocated partial privatisation of refineries for over 20 years. According to him, government ownership has slowed efficiency and blocked commercial growth.
He explained that private investors make business-driven decisions. As a result, operations improve and profitability increases.
“So when they are making decisions, their decisions are not subjected to political whims,” he said.
However, he stressed that the government must not sell 100 per cent equity. Instead, it should retain a minority stake to safeguard national energy security.
Adopt the NLNG Model, Union Insists
Osifo urged the government to replicate the Nigeria LNG structure. Under the Nigeria LNG Limited model, private investors hold majority shares, while the government retains minority equity.
He noted that international oil firms such as Shell plc, TotalEnergies and Eni S.p.A. jointly control 51 per cent of NLNG.
“At least sell 51 per cent to refiners, not portfolio investors or politicians,” Osifo said.
He added that core investors with refining expertise would depoliticise management and attract fresh capital.
Support for NNPCL’s Reform Direction
Meanwhile, Osifo welcomed the current NNPCL management’s plan to attract investors and divest majority stakes. He said the union supports reforms that improve transparency and profitability.
His comments followed remarks by NNPCL Group Chief Executive Officer, Bayo Ojulari. Ojulari recently visited the Dangote Petroleum Refinery, Africa’s largest single-train refinery.
Ojulari described the facility as a symbol of “technological audacity and national pride.” NNPCL holds a seven per cent stake in the privately owned refinery.
Energy Security Remains Priority
Although the union supports majority private participation, it insists on government oversight. Osifo argued that a minority stake protects national interests during crises.
Therefore, PENGASSAN believes a balanced ownership structure will boost efficiency while preserving energy security.
The renewed call comes amid debate over Nigeria’s struggling state refineries and broader oil sector reforms.
