The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has renewed its long-standing call for the Federal Government to divest a majority stake in the country’s state-owned refineries managed by the Nigerian National Petroleum Company Limited (NNPC).
In a statement on Sunday, February 23, 2026, Festus Osifo, National President of PENGASSAN and the Trade Union Congress, advocated adopting the successful Nigeria LNG (NLNG) model where private investors hold the majority equity while the government retains a minority share.
Key points from Osifo’s remarks:
The government should sell at least 51% equity in the refineries to credible core investors, specifically experienced refiners.
“We have always advocated in PENGASSAN in the last 20 years that the government should bring about the NLNG model in the refinery. At least, the government should sell a minimum of 51 per cent to investors. And these investors should be refiners.”
Full 100% privatization should be avoided to safeguard energy security, with the government keeping a minority stake (e.g., 49%).
“The advantage of it is that it will not be politicised. Businessmen will make business decisions… But they should not sell it 100 per cent. The reason is because of energy security.”
Osifo argued that decades of full government ownership have led to inefficiency, politicization, and failure to achieve commercial viability, leaving the refineries largely moribund despite repeated rehabilitation efforts.
He praised the current NNPC leadership for actively pursuing investor partnerships and divestment, aligning with PENGASSAN’s position, but stressed the need for majority private control to attract fresh capital, professional management, and profitability.
The refineries in question include the historic state-owned facilities (such as those in Port Harcourt, Warri, and Kaduna), which have struggled with low or zero output for years, contributing to Nigeria’s heavy reliance on imported petroleum products.
PENGASSAN’s proposal comes amid broader reforms in the oil sector following the commercialization of NNPC and the operational success of private facilities like the Dangote Petroleum Refinery, in which NNPC holds a 7% equity stake.
The union believes this partial privatization approach would depoliticize operations, boost domestic refining capacity, enhance fuel supply security, and insulate the sector from political interference while protecting national interests through retained government oversight.
SOURCE: NigerianEye