The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has renewed its call for the federal government to divest majority shares in the country’s state-owned refineries, recommending a model similar to Nigeria LNG by selling at least 51 per cent equity to core investors.
Under this approach, the government would retain a minority stake while private refiners hold the majority, a move the union says would improve efficiency and profitability.
National President of PENGASSAN and the Trade Union Congress, Festus Osifo, emphasized that the union has advocated partial privatisation of refineries for over 20 years. He stressed that government ownership has hindered commercial viability.
“We have consistently suggested that the government adopt the NLNG model for refineries,” Osifo said. “This means selling at least 51 per cent to refiners, not just portfolio investors or political allies. The government retains a minority stake to protect energy security, while investors manage operations efficiently.”
According to PENGASSAN, divesting majority shares to private refiners would depoliticize management, attract fresh investment, and encourage profitable operations. Osifo also expressed support for the current NNPC management’s efforts to attract investors while cautioning against full divestment.
The call comes amid ongoing discussions on the future of Nigeria’s struggling state-owned refineries and broader reforms in the oil and gas sector following the commercialisation of the Nigerian National Petroleum Company Limited (NNPCL).
Recently, the Group Chief Executive Officer of NNPC praised the Dangote Petroleum Refinery, Africa’s largest single-train facility, during a visit to the 650,000 barrels-per-day plant. NNPC currently holds a seven per cent equity stake in the privately owned refinery.
PENGASSAN’s recommendation reflects organised labour’s conditional support for private participation in the refining sector, provided the government retains a minority stake to safeguard energy security and reduce political interference in operations.
