PENGASSAN Calls On Government To Boost Support For Dangote Refinery

PENGASSAN Calls On Government To Boost Support For Dangote Refinery....KINDLY READ THE FULL STORY HERE▶

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to increase its shareholding in the Dangote Petroleum Refinery from the current 7% to at least 45%. This move, according to PENGASSAN, would enhance energy assurance and security for Nigerian citizens……CONTINUE READING 

During the presentation of the association’s communique at the recent Energy and Labour Summit in Lagos, PENGASSAN President Festus Osifo emphasized that a higher stake in the refinery is essential for national energy security, which he deemed crucial for the nation’s survival. He highlighted the citizens’ demand for energy that is affordable, accessible, and available.

Osifo also proposed that the government collaborate with private sector players to maintain existing petroleum product storage facilities across the six geopolitical zones. This strategy would allow for the storage of petroleum products to manage supply shortages, thereby alleviating issues like poor road conditions and erosion-related shortages that often lead to long queues at fuel stations.

He advocated for expanding pipeline infrastructure to facilitate the transportation of refined petroleum products, which would lessen the burden on road networks currently used by tanker trucks. To achieve energy security, Osifo stressed that energy must be affordable, urging the government to stabilize the exchange rate to combat the ongoing depreciation of the Naira, which he noted is significantly affecting energy costs.

Additionally, Osifo called for increased efforts to reactivate Nigeria’s four refineries and recommended that the government maintain a maximum of 49% ownership stake while bringing in core investors to take the majority share. He expressed regret that the Nigerian National Petroleum Corporation (NNPC) could only manage a 7.2% stake in the $20 billion refinery, despite earlier opportunities to acquire a larger share.

He pointed out that the devaluation of the Naira is a significant factor behind the rising cost of Premium Motor Spirit (PMS), explaining that if the exchange rate were more favorable, fuel prices could be substantially lower.

PENGASSAN urged the government to develop and strengthen the country’s oil and gas value chain to improve the efficiency and reliability of fuel distribution, arguing that the current truck-based system is inadequate and vulnerable to disruptions caused by poor infrastructure.

The association also noted the recent trend of divestment by International Oil Companies (IOCs) as a call for strategic local empowerment and innovation. They cautioned that while divestments may present risks such as reduced foreign investment and technical expertise, they also offer opportunities for the local market.

PENGASSAN stressed the importance of adhering to a comprehensive divestment framework under the Petroleum Industry Act (PIA) and recommended establishing a job protection system to safeguard employment for Nigerians affected by divestments. They proposed signing a Memorandum of Understanding (MOU) between divesting companies and trade unions to ensure job security and enhance workers’ welfare.