PENGASSAN to FG: Adopt NLNG model, divest refineries for efficiency
…says politics stalling progress
…insist Nigeria must boost oil production, replicate Dubai’s transformation
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to adopt the Nigeria Liquefied Natural Gas (NLNG) model in the management of the country’s refineries, insisting that politics has stalled progress for too long.
President of PENGASSAN, Comrade Festus Osifo, made the call in Abuja during the Petroleum and Energy Labour Summit (PEALS) 2025, stressing that the nation must urgently embrace a sustainable refinery model that prioritises efficiency and shields operations from political interference.
He explained that in the proposed model, government would maintain minority shareholding while private sector operators with the technical expertise and financial capacity take majority control.
“Yes, the refinery should work, but there is a model that we have operated over the years, and that is the NLNG model. Bring the refinery to work, but when the refinery is working, you divest. Let government have minority shares in it.
“In NLNG today, government has 49 percent shares, while companies like Shell and Total Energies hold 51 percent,” Osifo noted.
The labour leader stressed that Nigeria has the human resources to make the refineries functional, but political interference has crippled their efficiency.
Osifo lamented that despite issuing licences to several companies for drilling and production, many of the fields remain idle.
“There is a lot of politics going on over the years as far as refinery operation is concerned. For you to reduce that politics, government must divest.
“You are given licences to engage in drilling and production, but most of these companies have not carried out the function. Today, most of those fields are lying fallow.” He queried
He revealed that Nigeria sits on over 37 billion barrels of crude oil, yet current production levels of about two million barrels per day were grossly inadequate.
The PENGASSAN chief argued that Nigeria must use its oil wealth as a foundation to transform other sectors of the economy, citing the example of the United Arab Emirates.
“If we maintain this rate, it will take us over 50 years to drill what we have. Effort must be put in place to increase production.
“Dubai today was built by the oil money from Abu Dhabi. Why can’t we replicate the same thing in Nigeria? This is not rocket science,” he charged.
On licensing rounds, Osifo commended the transparency of the recent marginal field bid exercise, describing it as one of the fairest processes witnessed in the sector.
“Before now, oil blocks were given to big politicians who lacked the expertise or financial capacity to develop them. But the recent round was very transparent,” he said.
He insisted that future oil sector allocations must be based strictly on technical competence and financial capacity.
Osifo, however, expressed concern over attempts by some companies to frustrate workers from joining trade unions, even as he warned that PENGASSAN would resist such practices.
“If you have the technical expertise and financial muscle, you should be able to contribute to the growth of the oil and gas industry, without needing to know any big man.
“There are a few companies today preventing members from joining the union. One company, as we speak, is giving its workforce letters to sign that they will not join. This is 2025, and we still have companies indulging in this.
“We wish to use this media to let them understand that they must cease and desist, because if they don’t, we will surely come after them,” he said.
