The Petroleum and Natural Gas Senior Staff Association of Nigeria is advocating for the Federal Government to increase its ownership in the Dangote Petroleum Refinery from seven percent to at least 45 percent to enhance energy security. This move aims to guarantee energy stability for the populace. During a summit in Lagos, PENGASSAN President Festus Osifo highlighted the importance of government involvement in the refinery to bolster energy security, which is vital for the nation’s survival. Osifo also suggested collaboration between the government and private sector to maintain petroleum product storage facilities in all six geopolitical zones to prevent shortages and eliminate challenges like bad roads and erosion-induced disruptions.
In addition, Osifo emphasized the necessity of expanding pipelines for efficient transportation of refined petroleum products across the country to reduce reliance on road transport. He stressed the significance of affordable energy and urged the government to stabilize the exchange rate to ensure energy affordability for Nigerians. Osifo also called for efforts to optimize the functionality of the nation’s refineries and proposed divesting majority shareholdings to attract core investors and enhance operational efficiency.
The association pointed out the impact of currency devaluation on the affordability of petroleum products, emphasizing the need for exchange rate stability. PENGASSAN urged the government to focus on developing a robust oil and gas value chain to streamline downstream distribution and mitigate fuel shortages caused by logistical challenges. The association also highlighted the importance of local empowerment and innovation in response to the divestment trend by International Oil Companies, stressing the need for a comprehensive divestment framework under the Petroleum Industry Act to guide asset divestment in the sector. Additionally, PENGASSAN recommended the establishment of a job protection system to safeguard employment post-divestment and ensure the welfare of workers.