Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has clarified the reasons behind the shutdown of Nigeria’s state-owned refineries.
Osifo refuted claims that the refineries never worked, stating that they indeed operated but were inefficient, causing financial losses due to the value of products being less than the cost of crude input.
He explained that the shutdown was necessary to address a “material balance” issue, where the input and output values did not align, along with a technological gap exacerbated by government mismanagement, such as separating refinery units that previously worked in tandem.
Osifo defended refinery workers, pointing out that many were reassigned to other strategic business units within the Nigerian National Petroleum Company Limited (NNPCL) during refinery shutdowns, continuing to contribute to operations elsewhere.
He urged the government to privatize the refineries by giving private investors a majority stake (51%), believing this would improve efficiency and ensure sustainable operations.
Osifo also highlighted that political interference, corruption, and lack of supporting infrastructure have historically crippled refinery performance and discouraged vital investments.
Nigeria’s four main refineries Port Harcourt, Warri, Kaduna, and now Dangote Refinery have struggled to function optimally despite billions spent on rehabilitation.