Ex-PENGASSAN President Warns of Fuel Crisis Impact

Festus Osifo, the former President of the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and current President of the Trade Union Congress (TUC), cautioned against the Nigerian Midstream and Downstream Petroleum Regulatory Authority's (NMDPRA) proposed price cap on petroleum products. Speaking at a reception organized by TotalEnergies E&P to mark the end of his six-year tenure with PENGASSAN, Osifo stated that the price cap could exacerbate Nigeria's fuel crisis and drive investors away from the downstream sector.

He argued that such a measure risks reversing the progress made under a liberalized petroleum market by reducing competition and making Nigeria less appealing for investment. Osifo urged the NMDPRA to abandon the price-capping strategy and instead implement policies that would attract more investors, particularly those interested in building modular and large-scale refineries.

He emphasized that increased market participation would lead to competitive pricing, benefiting consumers. Additionally, Osifo called for a significant increase in Nigeria's crude oil production from approximately 1.8 million barrels per day to between three and four million barrels per day over the next three to ten years.