The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has renewed its long-standing call for the Federal Government to sell at least 51 per cent stake in the nation’s state-owned refineries, arguing that majority private ownership is the only sustainable path to revitalising Nigeria’s struggling refining sector. The union wants the government to adopt the successful ownership structure of the Nigeria LNG Limited (NLNG) model, where the state retains a minority stake while core investors hold controlling shares.
Speaking on Politics Today on Channels Television, PENGASSAN National President, Festus Osifo, said the union has consistently advocated partial privatisation of the refineries for over two decades. According to him, government dominance in refinery ownership has undermined operational efficiency and commercial viability, leaving the facilities vulnerable to political interference and poor management decisions.
Osifo stressed that any majority stake should be sold strictly to experienced refiners — not political allies or passive investors. “Sell at least 51 per cent to refiners who understand the business,” he said, adding that this would encourage serious investment, improve management discipline, and position the refineries to operate profitably. He cited the NLNG structure, where global energy companies such as Eni, TotalEnergies, and Shell hold a combined majority stake, as evidence that the model works.
While backing the Nigerian National Petroleum Company Limited (NNPCL) management’s recent moves to attract investors, Osifo insisted the Federal Government must not completely exit ownership. Retaining a minority share, he argued, is essential for protecting Nigeria’s energy security and ensuring strategic national interests are preserved. “They should not sell 100 per cent,” he cautioned, noting that energy security remains too critical to be left entirely in private hands.
The renewed call comes amid broader reforms in Nigeria’s oil and gas industry following NNPCL’s commercialisation. It also follows recent remarks by NNPCL Group Chief Executive Officer, Bayo Ojulari, who praised the Dangote Petroleum Refinery as a symbol of national pride during a landmark visit to the 650,000 barrels-per-day facility. With organised labour now signalling conditional support for majority private participation, the debate over the future of Nigeria’s refineries is entering a decisive phase — one that could reshape the country’s energy landscape for decades.