PENGASSAN Advocates for Partial Privatization of Refineries

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government of Nigeria to divest at least 51% of its equity in state-owned refineries to genuine refiners instead of politicians. This recommendation was made by PENGASSAN's President, Osifo, during a feature on Channels Television.

The union suggests adopting a model similar to Nigeria LNG, where the government retains a minor stake while allowing core investors with proven refining capabilities to manage operations. Osifo argued that government ownership has hindered efficiency and commercial viability in the refining sector.

He cited the success of Nigeria LNG, which operates under a privatized structure, as a model to attract fresh investment and ensure profitability. PENGASSAN supports current reforms directed at the Nigerian National Petroleum Company Limited (NNPCL) but cautions against full privatization, advocating for a minor government stake to safeguard national energy interests and insulate operations from political interference.