Fuel Sector Shake-Up: PENGASSAN Urges Government To Privatize Majority Stake In Refineries

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reiterated its opposition to the Federal Government’s proposal to sell its entire stake in Nigeria’s state-owned refineries, warning that a complete sale could compromise the country’s energy security.....KINDLY READ THE FULL STORY HERE▶

Speaking on Sunday Politics, PENGASSAN President Festus Osifo emphasized that while the union supports privatization, it is firmly against the sale of 100 percent government equity in the refineries.

“Selling a 100 percent stake would mean the government loses total control of these strategic assets, which is why we believe it would be detrimental to Nigeria’s energy security,” Osifo said. He explained that refineries are not merely commercial ventures but crucial infrastructure for ensuring fuel supply, managing price shocks, and safeguarding national interests during emergencies.

Osifo noted that PENGASSAN has long advised the government to reduce its ownership in refineries—but never to fully relinquish control. “Even before the tenure of Comrade Peter Esele, we have consistently advocated that the government should sell shares,” he said. “The reason we oppose a complete sale is entirely about protecting energy security.”

Why a 51% Sale Makes Sense
The PENGASSAN president proposed that the government sell 51 percent of its stake in the refineries while retaining 49 percent for Nigerians. He explained that this approach would transfer operational control to private investors while maintaining a significant government presence.

“If the government sells a 51 percent stake, operational control moves to the private sector, which is a form of privatization. But retaining 49 percent ensures the government still has a say and protects national interest,” Osifo said.

He added that Nigeria’s oil and gas sector would be in far better shape today if previous administrations had followed the union’s guidance on refinery management and ownership. He attributed decades of underperformance to political interference, poor maintenance culture, and inconsistent policies.

Addressing concerns that investors might be hesitant to buy into government-owned refineries, Osifo dismissed such fears, citing Nigeria’s large market as a major attraction. “There are definitely investors willing to acquire a stake, given the size of our population,” he said.

He stressed that the refineries would operate efficiently if well maintained and insulated from political pressures. “When properly maintained without political interference, these refineries will work,” he said.

Osifo also cautioned that even if the government moves forward with selling 51 percent of its stake, a thorough and transparent valuation must be conducted to prevent critical assets from being sold below their true worth. “The government must ensure a complete valuation to avoid selling the refineries cheaply,” he warned.

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