The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to sell at least 51 percent of its equity in the nation’s state-owned refineries to core private investors.
The union advocates replicating the successful Nigerian Liquefied Natural Gas (NLNG) model, where the government holds a minority stake, to boost operational efficiency and shield the facilities from political interference.
Festus Osifo, the National President of PENGASSAN and also the President of the Trade Union Congress (TUC), reiterated this stance during an appearance on Channels Television’s Politics Today program on Sunday.
Osifo emphasized that the union has been championing partial privatization for over two decades, arguing that full government ownership has stifled commercial viability and led to persistent underperformance in the refineries.
“We have always advocated in PENGASSAN in the last 20 years that the government should bring about the NLNG model in the refinery,” Osifo stated. “And what is that? The government should take a minority stake in the refinery and sell the majority stake. At least, the government should sell a minimum of 51 percent to investors. And these investors should be refiners. They shouldn’t just be portfolio investors or politicians or friends of the political class.”
Osifo highlighted the NLNG framework as a proven success story, where international energy giants such as ENI, TotalEnergies, and Shell collectively hold 51 percent of the shares, while the government maintains a 49 percent stake. This structure, he argued, has enabled NLNG to operate profitably and independently, free from the bureaucratic hurdles that plague state-run entities.
“But sell at least 51% of this refinery; you sell it to refiners,” Osifo continued. “So we are not against the government selling a majority stake in the refinery. That is what we have advocated in recent years. If you check the NLNG model, it has worked. A combination of ENI, Total Energy, and Shell has 51 percent in NLNG.”
The union’s proposal comes amid ongoing debates about the future of Nigeria’s four state-owned refineries—located in Port Harcourt, Warri, and Kaduna—which have long been criticized for inefficiency, corruption, and frequent breakdowns.
Despite billions of dollars invested in rehabilitation efforts, these facilities have operated far below capacity, forcing the country to rely heavily on imported petroleum products, even as Africa’s largest oil producer.
According to PENGASSAN, divesting majority shares to experienced private refiners would inject fresh capital, modernize operations, and prioritize profit-driven decisions. “The advantage of it is that it will not be politicized,” Osifo explained. “Businessmen will make business decisions that will impact and help them make a profit. That has been our position.”
Osifo expressed cautious optimism about the direction under the current leadership of the Nigerian National Petroleum Company Limited (NNPCL), which was commercialized in 2022 under the Petroleum Industry Act. He welcomed the NNPCL’s stated intentions to attract investors and divest assets but stressed the importance of retaining a government minority stake to ensure national energy security. “Thank God, that is the direction this new NNPC management has said they are driving it to bring in investors and divest from it,” he said. “But they should not sell it 100 percent. The reason is because of energy security.”
This position from organized labor marks a significant shift, offering conditional backing for increased private sector involvement in refining—a sector historically dominated by state control.
It underscores growing consensus that depoliticizing management is key to reviving the refineries, which could reduce Nigeria’s import dependency and stabilize fuel prices amid fluctuating global oil markets.
Osifo’s comments follow closely on the heels of a high-profile visit by NNPCL’s Group Chief Executive Officer, Bayo Ojulari, to the Dangote Petroleum Refinery on Saturday. During the tour—the first official inspection by NNPCL’s senior leadership—Ojulari lauded the 650,000-barrel-per-day facility as a beacon of “technological audacity and national pride.”
The privately owned refinery, Africa’s largest single-train operation, represents a model of private investment that aligns with PENGASSAN’s vision. Notably, NNPCL holds a 7 percent equity stake in the Dangote project, illustrating a hybrid public-private approach.
As Nigeria grapples with broader oil and gas sector reforms, including subsidy removal and efforts to combat oil theft, PENGASSAN’s call adds pressure on the government to accelerate privatization while balancing strategic national interests.
Analysts suggest that adopting the NLNG model could attract international expertise and funding, potentially transforming the refineries into competitive assets. However, challenges remain, including ensuring transparent bidding processes and addressing labor concerns over job security.
Government officials have yet to respond directly to Osifo’s latest remarks, but the discourse highlights a critical juncture for Nigeria’s energy policy, where efficiency and security must coexist in an era of global energy transitions.
WHAT YOU SHOULD KNOW
Nigeria’s leading oil workers’ union, PENGASSAN, is strongly urging the Federal Government to adopt the proven NLNG ownership model for the state-owned refineries: sell at least a 51% majority stake to genuine private refinery operators while retaining a minority share.
After 20 years of advocacy, the union believes full government control has crippled efficiency and kept the refineries moribund, and the only realistic path to profitability, depoliticization, and energy security is majority private-sector management with the government still holding a strategic minority stake.
