The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has renewed its call for the Federal Government to divest a majority stake in the country’s state-owned refineries, recommending the sale of at least 51 per cent equity to core investors.
The union said the proposed structure should mirror the Nigeria LNG (NLNG) ownership model, where the government retains a minority interest while private operators hold controlling shares.
Call for Majority Private Ownership
Speaking on Politics Today on Channels Television, PENGASSAN National President, Festus Osifo, said the union has consistently advocated partial privatisation of the refineries for more than two decades.
According to him, government dominance in the ownership structure has limited operational efficiency and weakened commercial performance.
Osifo stated that under the proposed arrangement, the government should maintain a minority stake, while at least 51 percent of the equity should be transferred to investors with refining expertise. He emphasized that the shares should not be sold to portfolio investors or politically connected individuals, but rather to established refiners capable of operating the facilities profitably.
He cited the Nigeria LNG model as a working example, noting that private oil majors collectively hold majority equity in NLNG, while the Federal Government maintains a minority interest.
Rationale Behind the Proposal
PENGASSAN argued that majority private participation would help insulate refinery operations from political interference, attract new capital investment, and strengthen profitability.
Osifo added that private investors are more likely to make commercially driven decisions, which could improve long-term sustainability.
At the same time, he stressed that the government should not fully divest from the refineries. Retaining a minority stake, he said, remains important for safeguarding national energy security.
Ongoing Reform Debate
The renewed call comes amid broader discussions about the future of Nigeria’s state-owned refineries following the commercialisation of the Nigerian National Petroleum Company Limited (NNPCL).
It also follows recent comments by NNPCL Group Chief Executive Officer, Bayo Ojulari, who, during a visit to the Dangote Petroleum Refinery, described the facility as a landmark industrial project. The visit marked the first official tour of the refinery by the senior leadership of the state oil company. NNPCL currently holds a minority equity stake in the privately owned refinery.
PENGASSAN’s position indicates organised labour’s conditional support for majority private sector participation in refining, provided that government retains a minority interest to protect strategic national concerns while allowing operational decisions to remain commercially driven.