PENGASSAN URGES FG TO BOOST STAKE IN DANGOTE REFINERY FOR ENERGY SECURITY

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Olori Uwem

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Mar 18, 2024
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PENGASSAN URGES FG TO BOOST STAKE IN DANGOTE REFINERY FOR ENERGY SECURITY

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to significantly increase its stake in the Dangote Petroleum Refinery from 7% to 45%. According to PENGASSAN, this step is essential for ensuring energy security and stability for Nigerians.

Speaking at the association's Energy and Labour Summit in Lagos, PENGASSAN President Festus Osifo emphasized that a larger government stake would strengthen Nigeria’s energy security by making energy more affordable, accessible, and available. He stressed the importance of collaboration between the government and private sector in managing petroleum product storage across Nigeria’s six geopolitical zones, which would prevent the recurring fuel shortages that often arise from poor infrastructure and logistics.

Osifo further highlighted the need for expanding the country’s petroleum pipelines, which would reduce the heavy reliance on road transport for fuel distribution and alleviate pressure on Nigeria's deteriorating road networks.

He also advocated for the revitalization of Nigeria’s four refineries. Once operational, Osifo suggested that the government should retain a maximum 49% stake, while inviting private investors to take over 51%, ensuring improved efficiency and productivity.

In addressing the rising cost of petroleum products, Osifo pointed to the devaluation of the naira as a major factor. He argued that stabilizing the exchange rate would make fuel more affordable for Nigerians, and reiterated that energy affordability is key to national stability.

PENGASSAN also called for the implementation of a comprehensive framework to guide the divestment of assets in the oil and gas sector, protecting jobs and encouraging local innovation amidst a wave of international oil company divestments.

The association concluded by urging the government to strengthen the country’s oil and gas value chain, which would ensure a more efficient and reliable petroleum distribution system for Nigeria's growing energy needs.