The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to sell at least 51 per cent equity in Nigeria’s state-owned refineries, saying majority private ownership is necessary to improve efficiency, attract investment and end years of underperformance.
The union proposed that the government adopt a structure similar to the Nigeria LNG (NLNG) model, where the state retains a minority stake while core industry operators hold controlling shares. Under the arrangement, PENGASSAN said government oversight would be preserved, but day-to-day decisions would be driven by commercial considerations rather than political interests.
Speaking during a television interview, PENGASSAN President and Trade Union Congress leader, Festus Osifo, said the union has consistently pushed for partial privatisation of the refineries for more than two decades. According to him, total government control has weakened operational discipline and discouraged long-term investment.
Osifo stressed that any sale should be limited to credible refining companies with technical capacity and industry experience, warning against selling stakes to portfolio investors or politically connected individuals. He said bringing in experienced refiners would depoliticise management, improve maintenance culture and enhance profitability.
While backing the idea of divestment, the union insisted that government should not fully exit the refining sector. Osifo argued that retaining a minority stake would help safeguard national energy security and allow the state to maintain strategic influence without interfering in operations.
PENGASSAN also expressed cautious support for the direction being signalled by the current leadership of the Nigerian National Petroleum Company Limited (NNPCL), which has indicated plans to attract investors and reduce government exposure in refinery operations.
The call comes amid renewed national debate over the future of Nigeria’s refineries following years of low capacity utilisation and repeated rehabilitation efforts. It also coincides with recent comments by NNPCL Group Chief Executive Officer, Bayo Ojulari, who described the Dangote Petroleum Refinery as a benchmark for efficiency and industrial ambition during a recent visit by the company’s top management.
According to the union, opening the refining sector to majority private participation, while retaining limited government ownership, offers the most realistic path to restoring domestic refining capacity and reducing reliance on fuel imports
