The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has renewed its call on the Federal Government to divest majority shares in the country’s state-owned refineries, recommending the adoption of the Nigeria Liquefied Natural Gas model.
The union said the government should retain a minority stake while selling at least 51 per cent equity to core investors with proven refining capacity.
Naija News reports that the National President of PENGASSAN and the Trade Union Congress of Nigeria (TUC), Festus Osifo, made the recommendation on Sunday while featuring on Politics Today on Channels Television.
Osifo said the union had consistently canvassed partial privatisation of the nation’s refineries for over two decades, arguing that government ownership had hampered efficiency and commercial viability.
“We have always advocated in PENGASSAN in the last 20 years that the government should bring about the NLNG model in the refinery. And what is that? The government should take a minority stake in the refinery and sell the majority stake,” he said.
“At least, the government should sell a minimum of 51 per cent to investors. And these investors should be refiners. They shouldn’t just be portfolio investors or politicians or friends of the political class.”
He stressed that the buyers must be genuine operators in the refining business to ensure professionalism and sustainability.
“So we are not against the government selling a majority stake in the refinery. That is what we have advocated in recent years. If you check the NLNG model, it has worked. A combination of ENI, Total Energy and Shell has 51 per cent in NLNG,” he added.
Why NLNG Model Worked – Osifo
Citing the example of Nigeria LNG Limited, Osifo argued that a private-sector-driven ownership structure would depoliticise refinery management, attract fresh investment and ensure profitability.
Under the NLNG model, the Federal Government holds a minority stake, while international oil majors such as ENI, TotalEnergies and Shell control the majority equity.
According to him, adopting a similar template for Nigeria’s refineries would shield decision-making from political interference.
“So when they are making decisions, their decisions are not subjected to any political whims and caprices. That is actually what we have advocated. The government should divest its interest in the refineries and allow a minimum of 51 per cent of its shareholding.
“Give it to private investors, let them invest, and allow them to come around the refineries. The advantage of it is that it will not be politicised. Businessmen will make business decisions that will impact and help them make a profit. That has been our position,” Itodo said.
‘Don’t Sell 100% Because of Energy Security’
While expressing support for the current reform direction of the Nigerian National Petroleum Company Limited (NNPCL), Osifo cautioned against a full privatisation of the refineries.
“Thank God, that is the direction this new NNPC management has said they are driving it to bring in investors and divest from it. But they should not sell it 100 per cent. The reason is because of energy security,” he said.
He maintained that retaining a minority stake would enable the government to safeguard national energy interests while allowing private investors to drive operational efficiency.
Osifo’s remarks come amid renewed debate over the future of Nigeria’s long-struggling refineries and broader reforms in the oil and gas sector following the commercialisation of the NNPCL.
His comments also followed recent remarks by the Group Chief Executive Officer of NNPCL, Bayo Ojulari, who praised the Dangote Petroleum Refinery as a symbol of “technological audacity and national pride.”
Ojulari spoke during a landmark visit to the 650,000 barrels-per-day facility alongside members of the NNPCL board and executive management team, the first official tour of the refinery by the senior leadership of the state oil firm. NNPCL currently holds a seven per cent equity stake in the privately owned refinery.
The renewed call by PENGASSAN signals organised labour’s conditional backing for majority private participation in Nigeria’s refining sector, provided the Federal Government retains a minority interest to protect energy security while insulating operations from political influence.