The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to significantly increase its stake in the Dangote Petroleum Refinery from the current seven percent to at least 45 percent. This initiative aims to enhance energy security and assurance for Nigerian citizens.
During a recent Energy and Labour Summit in Lagos, PENGASSAN President, Festus Osifo, emphasized that a larger share in the refinery would bolster the nation’s energy security, an essential factor for national stability. He highlighted the public’s demand for energy that is affordable, accessible, and available.
Osifo urged the government to collaborate with private sector players to optimize petroleum product storage across Nigeria’s six geopolitical zones. This strategy is expected to mitigate supply shortages exacerbated by poor infrastructure and erosion-related issues, which often lead to long queues at petrol stations.
To improve energy distribution, Osifo recommended expanding pipeline networks for the transportation of refined petroleum, thereby reducing reliance on trucks that contribute to road congestion. He also stressed the importance of maintaining a stable exchange rate, noting that fluctuations in the naira have directly impacted fuel affordability for Nigerians.
Moreover, he advocated for the revitalization of the nation’s four refineries, suggesting that the government should hold a maximum of 49 percent ownership while encouraging core investors to take a majority stake. Osifo expressed disappointment that the Nigerian National Petroleum Corporation (NNPC) managed to acquire only a 7.2 percent stake in the $20 billion Dangote refinery despite earlier discussions around broader involvement.
He pointed out that the naira’s devaluation has led to unsustainable prices for Premium Motor Spirit (PMS), suggesting that if the exchange rate stabilized, fuel prices could significantly drop.
PENGASSAN urged the government to strengthen Nigeria’s oil and gas value chain, advocating for a more efficient distribution system to prevent ongoing fuel shortages. The association warned that relying solely on a truck-based distribution model is inadequate and vulnerable to failures caused by infrastructure challenges.
Additionally, PENGASSAN discussed the implications of the recent divestment trend by International Oil Companies, emphasizing the need for a strategic approach that promotes local empowerment, innovation, and talent utilization. While recognizing the potential risks associated with divestments, such as a decline in foreign investment and technical expertise, the association stressed the necessity for a comprehensive divestment framework under the Petroleum Industry Act (PIA).
To protect jobs amidst these changes, PENGASSAN called for a job protection system and a formal agreement between divesting companies and trade unions to safeguard workers’ interests.
