The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has urged the Federal Government to increase its stake in the Dangote Refinery from the current seven per cent to 45 per cent.
This call was made by PENGASSAN’s President, Festus Osifo, during the presentation of a communiqué and recommendations from the 3rd edition of the PENGASSAN Energy and Labour Summit in Lagos.
PENGASSAN highlighted that increasing the government’s stake in the refinery would help ensure sufficient product availability to meet local demand and guarantee energy security for Nigerian citizens. The union recommended modeling the nation’s refineries after the successful Nigerian Liquefied Natural Gas, NLNG, model, suggesting that the government retain a maximum 49% share in the four national refineries while divesting the majority 51% stake to core investors, similar to the structure used in NLNG.
Osifo also expressed concerns about the dilapidated state of inland petroleum depots across the country’s six geopolitical zones, calling on the government to collaborate with the private sector to rehabilitate these facilities. Restoring these depots would enhance the distribution of petroleum products and improve the national strategic reserve. PENGASSAN further called for the expansion of pipelines for refined product delivery nationwide, which would reduce the strain on roads caused by trucks transporting these products.
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Additionally, the union advocated for digital interventions to combat crude oil theft, a restructured security framework, and efforts to streamline regulations to attract more gas investments. Osifo emphasized that individuals caught engaging in crude oil theft should face strict punishment in order to deter others.
PENGASSAN raised concerns that, three years after the passage of the Petroleum Industry Act, PIA, certain provisions—such as the requirement for oil companies to contribute 3% of their operational revenue to the host community fund—have yet to be fully implemented.
The union also urged the government to create a business-friendly environment with incentives that would encourage more investment in Nigeria’s vast gas resources. In the upstream sector, PENGASSAN called for an amendment to the PIA to establish a clearer framework for divestment, noting that previous divestments have been ineffective due to the lack of financial capacity among the acquiring companies to maintain and expand the oil wells.
Finally, the group encouraged the energy sector to leverage advancements in Artificial Intelligence to boost productivity, enhance sustainability, and tackle issues such as oil theft and smuggling.
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