The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to significantly increase its stake in Dangote Refinery from 7% to 45% to foster product availability, meet local demand, and ensure energy assurance and security for citizens.
Festus Osifo, PENGASSAN President, made this call while presenting the communiqué from the 3rd PENGASSAN Energy and Labour Summit held in Lagos. He emphasised that refining operations should be modelled after the successful Nigerian Liquefied Natural Gas (NLNG) framework.
According to Osifo, the government should collaborate with the private sector to repair and revamp the nation’s dilapidated petroleum depots across six geopolitical zones. This would ensure smooth distribution of petroleum products and enhance the national strategic reserve.
PENGASSAN also advocated for the expansion of pipelines to facilitate the delivery of refined petroleum products across the country, thereby reducing the pressure on roads caused by trucks transporting these products.
The association further stressed the need for digital intervention to curb crude oil theft and smuggling, as well as re-engineering the security architecture to protect oil infrastructure.
Osifo expressed concern that three years after the passage of the Petroleum Industry Act (PIA), the section stipulating that 3% of the operational revenue of oil companies should be contributed to the host community fund remains unimplemented.
He enjoined the government to create a business-friendly environment by providing incentives for investors to tap into Nigeria’s abundant gas resources. Additionally, PENGASSAN recommended amending the PIA to include a divestment framework, noting that previous divestments have yielded minimal results due to financial constraints.
Leveraging Artificial Intelligence (AI) advancements is crucial to improving productivity, sustainability, and tackling oil theft and smuggling in Nigeria’s energy sector.
Osifo emphasised that severe punishment should be meted out to those found guilty of crude oil theft, serving as a deterrent to others.
Nigeria can ensure energy security, boost productivity, and attract investment to its oil and gas sector by leveraging these measures.