Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) President Festus Osifo has renewed calls for the Federal Government to sell 51% stakes in the nation's four state-owned refineries Port Harcourt, Warri, and Kaduna to private sector players, mirroring the successful NLNG model where private partners hold majority control. Speaking at PENGASSAN's National Executive Council meeting in Abuja on December 21, 2025, Osifo congratulated the Nigerian National Petroleum Company Limited (NNPCL) on rehabilitating the old Port Harcourt refinery but insisted privatization post-revival would guarantee operational sustainability amid past inefficiencies.
Osifo argued that government retaining just 49% would attract core investors for expert management, curbing waste from political interference and underutilization of Nigeria's 37 billion barrels of crude reserves, while urging full implementation of the remaining three refineries' turnarounds. He warned against over-reliance on state control, citing NLNG's profitability as proof that private majority stakes foster resilience in the oil and gas sector. This advocacy aligns with PENGASSAN's long-standing position, including 2025 summit communiques emphasizing divestment for incremental production and ESG compliance.
The proposal arrives as NNPCL navigates Dangote Refinery competition and global energy shifts, with Osifo also decrying expatriate influxes, host community neglect under the Petroleum Industry Act, and low tax thresholds for workers, signaling broader labor demands amid Tinubu's reforms. Critics question privatization risks, but Osifo envisions it stabilizing supply chains and reinvesting revenues into diversification like Dubai's model.