The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to increase its stake in Dangote Refinery from 7% to 45%.
PENGASSAN President, Festus Osifo, made this appeal during the presentation of recommendations from the 3rd PENGASSAN Energy and Labour Summit in Lagos. The union emphasized that this move would enhance local product availability, ensure energy security, and meet national demand.
PENGASSAN also suggested that the refineries should adopt the Nigerian Liquefied Natural Gas (NLNG) model, which has proven successful, recommending the government retain a maximum of 49% ownership in the four national refineries, while 51% would be held by core investors.
Osifo highlighted the deteriorating state of petroleum depots across Nigeria’s six geopolitical zones, calling for government collaboration with the private sector to rehabilitate them and ensure smooth petroleum distribution. Additionally, PENGASSAN advocated for expanding pipelines to reduce road traffic from petroleum trucks and suggested digital interventions to curb crude oil theft and improve the sector’s security.
The union expressed concern over the lack of implementation of certain sections of the Petroleum Industry Act (PIA), particularly the requirement that oil companies contribute 3% of their operational revenue to a host community fund. PENGASSAN also called for a more business-friendly environment with incentives for gas investment, and urged reforms to the PIA’s divestment framework, as current divestments are underperforming due to financial constraints.
Finally, PENGASSAN recommended leveraging Artificial Intelligence (AI) to enhance productivity, combat oil theft, and boost sustainability in Nigeria’s energy sector.
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