Sell 51% stake in NNPCL refineries, PENGASSAN urges FG

The Petroleum and Natural Gas Senior Staff Association of Nigeria on Sunday renewed its call for the Federal Government to divest majority shares in the nation’s state-owned refineries, urging authorities to adopt the Nigeria LNG model by selling at least 51 per cent equity to core investors.

Under this arrangement, the government would retain a minority stake while selling a majority shareholding to core investors.

The National President of PENGASSAN and the Trade Union Congress, Festus Osifo, made the recommendation when he featured as a guest on Politics Today on Channels Television.

Osifo said the union had consistently canvassed partial privatisation of the refineries over the past two decades, insisting that government ownership structure had hindered efficiency and commercial viability.

He said, “We have always advocated in PENGASSAN in the last 20 years that the government should bring about the NLNG model in the refinery. And what is that? The government should take a minority stake in the refinery and sell the majority stake.

“At least, the government should sell a minimum of 51 per cent to investors. And these investors should be refiners. They shouldn’t just be portfolio investors or politicians or friends of the political class.

“But sell at least 51% of this refinery, you sell it to refiners. So we are not against the government selling a majority stake in the refinery. That is what we have advocated in recent years. If you check the NLNG model, it has worked. A combination of ENI, Total Energy and Shell has 51 per cent in NLNG.”

According to the union, divesting majority shares to private refiners would depoliticise refinery management, encourage fresh investment and promote profitability.