PENGASSAN Urges Government to Bolster Energy Security with Increased Stake in Dangote Refinery

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to significantly raise its stake in the Dangote Petroleum Refinery from its current 7% to at least 45%, citing the move as crucial for Nigeria’s energy security.

Festus Osifo, President of PENGASSAN, made this plea during the association’s Energy and Labour Summit in Lagos on Tuesday, where he presented the summit’s communique and recommendations. He emphasised that increased government investment in the refinery is pivotal to securing affordable, accessible, and reliable energy for Nigeria’s citizens.

“Energy security is essential for the survival of any nation, and Nigeria is no exception,” Osifo stated, adding that such security can only be achieved through collaborative efforts between the government and private sector stakeholders. He also called for the creation of regional petroleum storage facilities across the country’s six geopolitical zones, suggesting they could serve as strategic reserves to cushion against supply disruptions and the frequent fuel shortages Nigerians face.

Osifo further urged the Federal Government to prioritiseinfrastructure development, specifically through the expansion of pipelines for distributing refined petroleum products nationwide. He warned that relying on trucks to transport fuel has placed immense pressure on Nigeria’s dilapidated roads, resulting in perennial shortages and long queues at petrol stations.

Reflecting on the recent acquisition of a 7.2% stake in the Dangote refinery, Osifo lamented the government’s missed opportunity to secure a larger portion. “Dangote was prepared to sell a 20% stake, but the government, through NNPC, could only afford 7%,” he revealed, underlining the importance of ramping up efforts to modernise Nigeria’s energy infrastructure.

Osifo also highlighted the negative impact of Nigeria’s sliding currency on the cost of fuel. “The devaluation of the naira is the main reason PMS is becoming unaffordable. If our exchange rate were at N450 to the dollar, fuel prices would be significantly lower,” he noted, pointing out that currency stabilisation, not merely subsidy removal, is the real issue hampering fuel affordability in the country.

PENGASSAN’s president further urged the government to expedite the repair and operationalisation of Nigeria’s four ailing refineries, suggesting that, once restored, majority ownership should be transferred to private investors while the government retains a minority stake.

The union also warned about the risks posed by the ongoing divestment of international oil companies (IOCs) from Nigeria’s upstream oil sector, citing the potential loss of foreign direct investment and technical expertise. Osifo called for the full implementation of a divestment framework under the Petroleum Industry Act (PIA) to ensure that Nigerians are not left vulnerable in the face of shifting global energy dynamics.

Without robust reforms, PENGASSAN stressed, Nigeria’s fuel distribution system will continue to face persistent disruptions, exacerbated by bad roads, ad-hoc logistics, and seasonal flooding, leaving citizens at the mercy of chronic fuel shortages.