President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has said the Federal government should sell only a 51 per cent stake in the refineries managed by the Nigeria National Petroleum Company (NNPC) Limited to private investors.
Osifo said PENGASSAN has always maintained that the government should not sell a 100 per cent stake in the refineries to private investors because of energy security.
“If the government sells a 51 per cent stake in the refineries, they would lose control. That is actually selling, but for the benefit of Nigerians, retain 49 per cent of it,” Osifo stated in an interview on Channels Television’s Sunday Politics.
He argued that for the sake of national interest, the government should retain at least 49 per cent interest, not a zero stake.
According to him, if the government had done that over the years, the country wouldn’t be where it is today in terms of boosting domestic refining, the general development of the oil and gas sector and energy security.
“So, all we have said is the government should sell 51 per cent of its stake in the refineries, and that is the direction in which the current management of the NNPC is working towards.
“We believe that the NLNG model is what is going to work,” Osifo added.
READ ALSO: NNPCL Targets 2 million bpd by 2027, Eyes 20% Stake in Dangote Refinery
The PENGASSAN president expressed belief that there are private investors willing to invest in the refineries.
He maintained that if the refineries are properly rehabilitated and managed, they would work and boost Nigeria’s refining capacity.
There have been calls for the federal government to sell off the state-owned refineries in Port Harcourt, Warri and Kaduna, following years of incapacity with millions of dollars spent on turnaround maintenance but zero output. The refineries have a combined 445,000 barrels per day production capacity.
In November 2024, the NNPC management, then led by Mele Kyari, announced the resumption of operations at the Port Harcourt refinery. Subsequently, in December 2024, the NNPC also announced the commencement of operations at the Warri refinery (125,000 bpd).
However, a few months later, both the Port Harcourt and Warri refineries were shut down over alleged technical failure.
The current GCEO of NNPC, Engr Bayo Ojulari, had in July this year said the company is considering selling off the refineries due to significant challenges in their rehabilitation and the high costs associated with operating them.
READ ALSO: Fuel Price War: Nigerians Demand NNPC Slash Prices to Match Dangote’s ₦739 Rate
Ojulari then said NNPC is conducting a strategic review of its refinery operations, which is expected to be concluded by the end of 2025.
The decision, according to him, will be based on the outcome of the reviews.
Those calling for the sale of a 100 per cent stake in the refineries argued that the facilities would be better managed by private investors for efficiency.
However, the PENGASSAN president believes that selling 51 per cent, with the Federal Government retaining a 49 per cent stake, would remove government control and political interference that affect the management and operations of the facilities.
The NLNG (Nigeria Liquefied Natural Gas) Limited is a joint venture owned by four shareholders: NNPC with 49 per cent, Shell (25.6 per cent), TotalEnergies (15 per cent), and Eni (10.4 per cent).
The ownership structure, which is a blend of Nigerian state control with international expertise and funding, has been hailed as a successful model for resource management in Nigeria.
NLNG, which processes Nigeria’s vast gas reserves into LNG for export and the domestic market, operates with an independent board, allowing for faster decisions and less bureaucracy than traditional government-run entities, fostering transparency and efficiency.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X
