Sell Majority Stake in Refineries – PENGASSAN Renews Call for NLNG-Style Model

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has again pressed the Federal Government to divest a controlling interest in the country’s state-owned refineries, recommending that at least 51 per cent equity be sold to experienced private refining companies while the government retains a minority holding.

National President Festus Osifo reiterated the union’s long-standing position during an appearance on Channels Television’s Politics Today programme on Sunday, February 22, 2026. He argued that the current government-dominated ownership model has consistently undermined operational efficiency, commercial discipline, and long-term viability.

The NLNG Success Blueprint

Osifo pointed to the Nigeria LNG (NLNG) structure as a successful blueprint. In that venture, the Nigerian government holds a minority stake while international oil companies – ENI, TotalEnergies, and Shell – collectively own 51 per cent. He insisted the same logic should apply to the refineries:

• Core Investors: Majority ownership must go to genuine refiners capable of injecting capital and modern technology.

• Exclusions: Ownership should not be sold to portfolio investors, political figures, or connected individuals.

• National Interest: The government should retain a minority stake (up to 49 per cent) to preserve national energy security and strategic oversight.

Operational Efficiency vs. Political Interference

The union leader emphasized that private-sector control would remove political interference from day-to-day decisions. “Business decisions would be driven by profitability and efficiency rather than political considerations,” he said. He welcomed recent statements from NNPCL Group Chief Executive Bayo Ojulari regarding plans to attract investors but cautioned against a total relinquishment of state oversight.

The facilities in question – Port Harcourt (two plants), Warri, and Kaduna – have remained largely idle for years despite billions spent on rehabilitation. This has forced Nigeria to rely on imported petroleum products despite being Africa’s largest oil producer.

Strategic Reforms

This renewed advocacy coincides with broader reforms under the Petroleum Industry Act (PIA) and follows Ojulari’s recent tour of the 650,000 barrels-per-day Dangote Petroleum Refinery, which NNPCL views as a symbol of domestic technological success. PENGASSAN believes that a commercial operator model is the only way to stabilize domestic supply and create sustainable jobs in the downstream sector.