The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has explained its strong opposition to the Federal Government’s proposal to sell its entire stake in Nigeria’s government-owned refineries, warning that such a move would leave the country vulnerable and weaken its energy security.
Speaking during an appearance on Sunday Politics, the President of PENGASSAN, Festus Osifo, said the union was not against privatisation but opposed the sale of 100 per cent government equity in the refineries.
Osifo warned that selling off the refineries completely would strip the government of control over strategic national assets, with serious consequences for Nigeria’s energy stability.
He said, “Selling a 100 per cent stake would mean that the government loses total control of the refineries, and that is why we believe it will be detrimental to Nigeria’s energy security.”
According to him, refineries are not just commercial ventures but strategic infrastructure that plays a critical role in guaranteeing fuel supply, managing price shocks and protecting national interest during emergencies.
The PENGASSAN president explained that the union had, for many years, consistently advised the Federal Government to reduce its ownership in the refineries but never to completely relinquish control.
“PENGASSAN, even before the time of Comrade Peter Esele, had been advocating that government should sell its shares,” Osifo said.
“The reason why we don’t want government to sell it 100 per cent to private investors is because of the issue bordering on energy security.”
Why 51% Sale Makes Sense
Osifo said the union was proposing that the government sell 51 per cent of its stake in the refineries while retaining 49 per cent on behalf of Nigerians.
He explained that selling 51 per cent would effectively hand operational control to the private sector while still allowing the government to maintain a significant presence.
“So, what we have advocated is what I have said earlier. If the government sells a 51 per cent stake in the refinery, what is going to happen? They will lose control, so that is actually selling.
“But for the benefit of Nigerians, retain 49 per cent of it,” Osifo added.
The PENGASSAN leader insisted that Nigeria’s oil and gas sector would have been in a much better state if past governments had listened to the union’s advice on refinery management and ownership structure.
He blamed decades of political interference, poor maintenance culture and policy inconsistency for the failure of the refineries to function optimally.
Addressing fears in some quarters that investors may not be interested in government-owned refineries, Osifo dismissed such concerns, saying Nigeria’s market size alone makes the assets attractive.
“Yes, there are investors who surely will be willing to buy a stake in the refinery because our population in Nigeria is quite huge,” he said.
He added that the refineries would function efficiently if properly maintained and shielded from political pressures.
“And those refineries, when well maintained without political pressures and political interference, will work,” he stated.
Osifo, however, cautioned that even if the Federal Government proceeds with selling 51 per cent of its stake, it must ensure that a comprehensive and transparent valuation of the refineries is carried out.
According to him, failure to do so could result in Nigeria’s critical assets being sold far below their true value.
He warned that the government must “ensure that a complete valuation is carried out to avoid selling the refineries cheaply.”