The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reiterated its firm opposition to the Federal Government’s plan to divest completely from Nigeria’s state-owned refineries, cautioning that such a decision could expose the country to serious energy risks and weaken national security.
Speaking on the programme Sunday Politics, the President of PENGASSAN, Festus Osifo, clarified that the union is not against privatization itself but strongly objects to the idea of selling 100 per cent of government equity in the refineries. According to him, total divestment would deprive the government of oversight and influence over assets that are critical to Nigeria’s economic stability and energy independence.
Osifo explained that refineries go beyond being profit-driven enterprises; they are strategic national infrastructure. In times of global supply disruptions, economic shocks, or national emergencies, locally controlled refining capacity plays a vital role in ensuring fuel availability, stabilizing prices, and safeguarding national interests. Handing over full ownership to private investors, he argued, would leave the country overly dependent on market forces and external actors.
“Once government sells its entire stake, it loses all control,” Osifo said, adding that this loss of control could have long-term consequences for Nigeria’s energy security. He stressed that the union’s position has remained consistent over the years, even before his tenure as president. PENGASSAN, he noted, has always advised the Federal Government to reduce its ownership in the refineries—but never to abandon them completely.
Tracing the history of the union’s advocacy, Osifo recalled that previous PENGASSAN leaders, including Comrade Peter Esele, had made similar recommendations. The central concern, he said, has always been energy security and the need for government to retain a meaningful stake on behalf of Nigerians.
As an alternative, PENGASSAN is proposing a partial divestment model in which the government sells 51 per cent of its shares in the refineries while keeping the remaining 49 per cent. Osifo explained that this structure would transfer operational control to the private sector, encouraging efficiency and profitability, while still allowing the government to maintain a significant presence and protect public interest.
“If government sells 51 per cent, that is effectively a sale because operational control shifts to private investors,” he explained. “But by retaining 49 per cent, Nigerians still have a stake in these strategic assets.”
Osifo argued that Nigeria’s oil and gas sector would be far more advanced today if successive administrations had acted on PENGASSAN’s long-standing advice. He attributed the poor performance of the refineries over the decades to political interference, weak maintenance practices, and inconsistent policies rather than to the idea of public ownership itself.
Responding to concerns that investors might not be interested in government-owned refineries, Osifo dismissed such fears. He pointed out that Nigeria’s large population and high demand for petroleum products make the refineries attractive investments. With proper management, clear governance structures, and freedom from political pressure, he said, the facilities could operate efficiently and profitably.
Nigeria’s market size alone, he emphasized, is a strong incentive for investors willing to take on a majority stake. However, he maintained that success would depend on insulating refinery operations from political influence and ensuring professional management.
Osifo also issued a strong warning on the need for transparency if the government proceeds with partial privatization. He stressed that a thorough and independent valuation of the refineries must be carried out to prevent the assets from being sold at prices far below their true worth.
Failing to do so, he warned, would amount to short-changing Nigerians and undermining the long-term value of the country’s critical infrastructure. According to him, careful valuation, transparency, and a balanced ownership structure are essential to achieving reform without sacrificing national interest.
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