Political Interference Destroying Nigeria’s Refineries – PENGASSAN

Political Interference Destroying Nigeria’s Refineries – PENGASSAN
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reiterated that Nigeria’s moribund refineries can only function optimally if the Federal Government ends political interference in the state-owned assets.

The union argued that years of political interference had crippled refinery operations, stressing that the only solution is for the government to divest and allow competent private investors to take charge.

PENGASSAN President, Festus Osifo, made the declaration on Thursday in Abuja at the ongoing 4th PENGASSAN Energy and Labour Summit 2025. Osifo’s comment was in reference to assurances by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, on plans to revamp the refineries.

Ojulari, at the opening ceremony of the three-day event, had said the government-owned Port Harcourt, Warri, and Kaduna refineries will work again, contrary to the views of the President of the Dangote Group, Alhaji Aliko Dangote, that the refineries might not work again.

Osifo, however, warned that without structural reforms, political interference would continue to cripple refinery operations.

He argued that Nigeria’s refineries had become victims of endless political interference, warning that without reform, history would keep repeating itself.

According to him, “the only way to end the politics strangling refinery operations is for the government to divest and allow professionals to take charge.”

He added that the Federal Government should adopt the Nigeria Liquefied Natural Gas ownership model, stressing that the government must divest its majority stake and allow private companies with the requisite expertise to manage the refineries.

The PENGASSAN president said, “We have said this countless times, over and over again, that yes, the refinery should work, but that there is a model that we have canvassed for over the years, and that model that we have operated over the years is what we refer to as the NLNG model. It is okay to bring the refinery to work. It is okay.

“But when the refinery is working, you divest. Let the government have minority shares in it, not companies that are specialised in other industries, not companies that are not proponents, but bring companies that know how to manage refineries. Let them come in and have the majority stake. As we have said, we have human resources in the refineries who understand how to operate the operations of the refinery. We have the human resources in Nigeria to make that refinery work.

“But as we know, if you work in an organisation and you are not given the tools to work, it is very, very difficult for you to work. So there is a lot of politics going on over the years as far as the refinery operation is concerned. But for you to be able to reduce that politics, the government must divest. You divest, you have minority shareholders, shareholding. In NLNG today, the government has 49 per cent shares.

“With that, the majority of decisions will be taken by the private sector. So this is what we have advocated for, for at least 10 years now. And that is the model we want the government to implement in terms of the refinery operation.”

Economic Confidential reports that the three refineries have remained dormant over the years despite all efforts to bring them back to life and a cumulative spending of $18bn. The Port Harcourt and Warri refineries that were reopened last year were later shut down for another maintenance.

Speaking further, Osifo reminded policymakers that Nigeria is endowed with over 37 billion barrels of proven crude oil reserves, warning that at the current output of just under 2 million barrels per day, it would take more than 50 years to exhaust the reserves.

“This shows that we are under-producing. We must step up output if we want to enjoy the benefits now and invest in other sectors. Dubai today was built by Abu Dhabi’s oil wealth. Why can’t Nigeria replicate that?” he asked.

In his remarks, the Executive Secretary of the Nigerian Content Development and Monitoring Board, Mr Felix Ogbe, underscored the need for human capacity development as the bedrock of Nigeria’s oil and gas growth.

Ogbe said the sector’s sustainability depends not only on reserves and infrastructure but also on equipping Nigerians with critical skills in engineering, safety, automation, and digital technologies. He highlighted NCDMB’s investments in training, research, and technical innovation, noting that every major oil and gas project must include skill-transfer components.

Source: EconomicConfidential | Read Full Story…