The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has renewed pressure on the Federal Government to restructure ownership of Nigeria’s state-operated refineries by transferring majority control to private sector operators with proven refining expertise.
Speaking during a televised policy discussion, the union’s leadership argued that sustained public-sector dominance has limited operational efficiency, discouraged fresh capital inflows and constrained commercial performance across the refining segment.
The association proposed that government ownership be reduced to a minority position, while at least 51 per cent equity is transferred to strategic investors with technical and operational capacity in downstream petroleum processing.
The union emphasized that equity participation should be restricted to industry players with refining experience rather than passive investors.
According to its position, majority private ownership would insulate refinery management from political influence, strengthen governance standards and align operational decisions with commercial sustainability.
The proposal draws from the structural framework of Nigeria LNG Limited, where private international partners hold controlling interest while the government retains minority participation.
Labour leaders argue that the model has demonstrated resilience, efficiency and profitability over time, offering a viable template for broader energy sector reform.
The call for restructuring comes at a time of renewed debate over the future of Nigeria’s legacy refineries and the evolving role of Nigerian National Petroleum Company following its commercial transition.
While supporting ongoing efforts to attract investment into the refining space, the union maintained that full divestment is not advisable, stressing the importance of retaining a strategic government stake to safeguard national energy security.
Industry observers note that the recommendation signals a shift in organised labour’s posture toward pragmatic reform.
Rather than opposing private participation outright, the union appears to support a hybrid ownership structure that balances commercial discipline with sovereign oversight.
The debate over refinery ownership is unfolding alongside broader structural adjustments within Nigeria’s oil and gas industry.
Advocates of majority private participation argue that introducing experienced operators could improve plant performance, enhance product output stability and reduce the fiscal burden associated with repeated rehabilitation cycles.
As discussions continue, the central question remains whether policymakers will embrace a majority-divestment model designed to attract strategic refiners while preserving minority state oversight in pursuit of long-term sector stability.
