Engr. Wole Ogunsanya, Chairman of the Petroleum Technology Association of Nigeria (PETAN), has called for the privatisation of Nigeria’s oil and gas pipelines to ensure greater efficiency and sustainability within the nation’s critical energy sector. He described this approach as a “commonwealth solution” that could transform the industry for the better.
Ogunsanya made the call at the Nigeria International Pipeline and Security Conference (NIPITECS), which was held at the Abuja Continental Hotel.
He explained that privatising Nigeria’s pipeline network could offer private investors the opportunity to own 51 percent of the nation’s pipeline assets, with oil producers such as the Nigerian National Petroleum Corporation Limited (NNPCL) and the Independent Petroleum Producers Group (IPPG) remaining shareholders. Ogunsanya pointed out that this model has worked successfully in the past, citing the example of the Nigeria Liquefied Natural Gas (NLNG) project, which remains a cornerstone of the country’s energy sector.
He stated, “All over the world, the life expectancy of populations is highly impacted by energy security, which ensures the availability of and access to healthcare, infrastructure that enhances living standards, affordable food, better housing, and education. With Nigeria’s life expectancy at 54.46 years (2023 UN Data), it means that Nigerians lack energy security. It also means that the majority of Nigerians lack all these basic necessities.”
Ogunsanya further noted, “For Nigeria, the catalyst to our economic growth is oil and gas, and capacity must be built across the value chain – from finding the resources to production to refining to transporting and to the downstream. Doing this with in-country capacity will guarantee Nigeria as one of the top 20 economies in the world.”
He also expressed regret that Nigeria has not fully capitalised on the proceeds from its crude oil sales to build the nation, but praised indigenous companies, especially those in associations like PETAN and PLAN, for their efforts in building local capacities and creating jobs within the industry. These initiatives, he said, have had positive multiplier effects throughout the value chain and regional economy.
Ogunsanya further highlighted the role of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PLAN), which he described as the “lynchpin” of the oil and gas industry. He emphasised that without PLAN’s contributions, the resources necessary for refining, gas plants, and power generation would not be effectively transported. He added that PETAN’s collaboration with PLAN has been vital in ensuring energy security for the country.
Speaking during a panel discussion on the topic ‘Pipeline System for Nigeria’s Decade of Gas: Challenges and Opportunities,’ Ogunsanya argued that Nigeria should utilise all available energy sources to close the energy gap. While he acknowledged the growing use of solar energy, he urged stakeholders to invest in local solar technology rather than relying on imports. He also pointed out that demand for oil and gas will remain significant, albeit at a slower pace, especially in developing countries.
Ogunsanya concluded by congratulating Engr. Geoff Onuoha, Chairman of the Board of Trustees of PLAN, and other PLAN members, many of whom also belong to PETAN. He reaffirmed PETAN’s ongoing support for PLAN’s advocacy activities, particularly those that raise awareness about the importance of pipelines in the oil and gas industry.