THE Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reiterated its long-standing demand for the Nigerian Government to relinquish majority control of the country’s state-owned refineries, recommending the sale of at least 51 percent equity to core investors.

The union said the proposed structure should mirror the ownership framework of Nigeria LNG Limited (NLNG), where government maintains a minority stake while strategic investors hold controlling shares. Under such a model, private refiners – not portfolio investors or politically connected interests – would take operational control, while the state retains a reduced holding to protect national energy interests.

Speaking on Politics Today on Channels Television, PENGASSAN President and Trade Union Congress chief, Mr Festus Osifo, said the union has advocated partial privatisation of the refineries for over two decades. According to him, the prevailing government ownership structure has constrained efficiency and undermined the commercial viability of the facilities.

Mr Osifo stressed that PENGASSAN is not opposed to the sale of a controlling stake, provided it is structured properly. “At least 51 percent should be sold to investors who are refiners,” he said, noting that handing over majority equity to experienced industry operators would depoliticise management decisions and prioritise profitability and operational sustainability.

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He cited NLNG as a successful precedent, pointing out that a consortium comprising ENI, TotalEnergies and Shell collectively controls 51 percent of the gas company, while the Nigerian government retains a minority share. That arrangement, he argued, has insulated NLNG from political interference and ensured disciplined corporate governance.

According to the union leader, transferring majority ownership to competent private refiners would attract fresh capital, strengthen accountability and encourage commercially driven decision-making. He maintained that business-oriented operators are more likely to implement reforms necessary to revive the long-struggling refineries.

While backing plans by the new management of Nigerian National Petroleum Company Limited (NNPCL) to attract investors and divest interests in the refineries, Mr Osifo cautioned against a full sale of government holdings. He said retaining a minority stake is crucial for safeguarding national energy security and ensuring the state maintains strategic oversight.

Aging refineries and Dangote solution

His remarks come amid renewed discussions over the fate of Nigeria’s aging and largely non-functional refineries, particularly in the wake of broader reforms that transformed the former state oil corporation into a commercially oriented limited liability company.

The debate has intensified following recent comments by NNPCL Group Chief Executive Officer, Mr Bayo Ojulari, who described the Dangote Petroleum Refinery as a symbol of technological ambition and national pride.

Speaking during a tour of Dangote Petroleum Refinery on Saturday, Mr Ojulari said Nigerians should appreciate the leadership behind the project, noting what he called the ‘audacity’ required to deliver a refinery of such magnitude.

“Nigerians, we should be grateful for the leadership and the inspiration of Alhaji [Aliko Dangote] and the Dangote Group for what my colleague called the audacity to embark on such a huge project,” he said.

“There’s nothing like being here physically to actually see things for yourself. What we are seeing here is what I call the frontline of world-class technology,” he said.

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Mr Ojulari said initial concerns about the refinery’s single-train configuration had been allayed after observing its architecture and built-in redundancies, stating that, being an engineer, he was fuly aware of the refinery’s capacity.

“Coming here and seeing the architecture of the plant and the redundancy that has been given… you see that despite being a single train, it has an incredibly high availability,” Mr Ojulari said.

The NNPC boss explained that the refinery leverages advanced digital technology, artificial intelligence, and mechanical systems, enabling it to benefit from global best practices.