Nigeria’s long-running struggle to fix its state-owned refineries has again taken centre stage, as organised labour pushes a model that blends private sector efficiency with public control. The proposal, coming at a time of renewed reforms in the oil and gas sector, highlights the delicate balance between attracting investors and safeguarding national energy security.
Speaking with clarity and conviction, the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has called on the Federal Government to sell only a 51 per cent stake in NNPCL refineries, rather than opting for full privatisation.
Osifo made the remarks during an interview on Sunday Politics on Channels TV.
Energy security remains non-negotiable
Osifo argued that retaining minority government ownership in the refineries is critical to Nigeria’s long-term energy security. According to him, selling the assets outright to private interests could expose the country to supply risks and market manipulation.
He said PENGASSAN supports reform but insists on retaining strategic control.
“Why we don’t want the government to sell the refinery 100 per cent to the private sector is because of the issue bordering on energy security,” Osifo said.
51% sale aligns with NNPCL reform direction
Osifo said the proposed 51 per cent divestment model aligns with the reform path NNPC Limited is already pursuing.
He stressed that this ownership structure would reduce political interference while opening the door to technical partners with capital, operational discipline and global refinery management experience.
“What we have advocated is that government should sell a 51 per cent stake in NNPCL refineries, and that is the direction in which the current management of NNPCL is working towards,” he stated.
Investors will come, Osifo insists
Countering concerns about investor appetite, the PENGASSAN president said Nigeria’s large population and massive domestic fuel demand make the refineries commercially attractive.
He said professional management, free from political pressure, would enable the facilities to operate efficiently and deliver value across the downstream value chain.
“There are investors who will surely be willing to buy a stake in the refinery because our population in Nigeria is quite huge,” Osifo said.
“Those refineries, when well-maintained without political pressures and interferences, are going to work.”
Bigger implications for downstream reform
Analysts say Osifo’s comments reflect a growing consensus within the industry that partial privatisation, rather than outright sale, may be the most realistic path to reviving Nigeria’s moribund refineries.
If implemented, the 51 per cent sale could improve refinery efficiency, reduce fuel imports, conserve foreign exchange and stabilise pump prices—while still allowing the government to retain strategic oversight.
As Nigeria pushes deeper into oil and gas sector reforms, the debate over how best to reposition NNPCL refineries is expected to intensify, with labour unions, investors and policymakers all watching closely.