Sell 51% stake in NNPCL refineries – PENGASSAN urges FG
Nigeria’s senior petroleum workers have renewed pressure on the Federal Government to fundamentally restructure ownership of the country’s state-owned refineries, insisting that majority private control is the only viable path to commercial sustainability.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has formally reiterated its position that the government should divest at least 51 per cent equity in the refineries under the control of the Nigerian National Petroleum Company Limited (NNPCL), while retaining a minority stake for strategic oversight.
Speaking during a televised policy discussion, the union’s National President, Festus Osifo, argued that partial privatisation based on the Nigeria LNG Limited (NLNG) template would depoliticise refinery management, unlock fresh capital and restore operational discipline to facilities that have struggled for decades.
Why PENGASSAN wants 51% stake in NNPCL refineries sold
According to PENGASSAN, the call to sell 51% stake in NNPCL refineries is not new. The union maintains that it has consistently canvassed majority private participation for nearly two decades, citing inefficiency, weak maintenance culture and political interference as recurring constraints under full government ownership.
Osifo explained that the proposed model would mirror NLNG’s shareholding arrangement, where the Federal Government retains a minority interest while international energy firms hold majority equity and drive commercial decision-making.
Under that framework, investors are expected to be established refiners with technical capacity and long-term capital commitments — not passive financial players or politically exposed interests.
PENGASSAN believes that selling 51% stake in NNPCL refineries to competent refining operators would ensure that investment decisions are commercially driven, insulated from political cycles and focused on profitability.
Energy security still central
Despite advocating majority divestment, the union insists the government must not exit completely. Retaining a minority shareholding, it argues, would preserve national energy security and safeguard sovereign interests.
This hybrid ownership structure, proponents say, balances commercial efficiency with public accountability.
Nigeria’s refineries in Port Harcourt, Warri and Kaduna have historically operated below optimal capacity, despite repeated rehabilitation efforts and multi-billion-dollar investments.
Analysts observe that past turnaround maintenance programmes yielded limited long-term improvements, reinforcing labour’s argument that structural reform — rather than incremental repair — is required.
Reform momentum and industry context
The debate over whether to sell 51% stake in NNPCL refineries has gained urgency following broader sector reforms under the Petroleum Industry Act and the commercialisation of NNPCL.
In recent months, NNPCL leadership has signalled openness to strategic partnerships aimed at reviving refining operations and reducing reliance on imported petroleum products.
The Group Chief Executive Officer of NNPCL, Bayo Ojulari, recently toured the 650,000 barrels-per-day Dangote Petroleum Refinery, describing it as a benchmark for technological ambition and industrial scale.
NNPCL currently holds a minority stake in the privately owned refinery, a development seen by some observers as evidence of a shifting philosophy toward partnership-led growth.
Labour leaders argue that if the Dangote model demonstrates the power of private capital and operational independence, similar principles should apply to legacy state-owned plants.
Investors and governance considerations
Energy economists note that selling 51% stake in NNPCL refineries could attract international refining majors seeking footholds in West Africa’s largest fuel market.
However, successful execution would depend on transparent valuation, credible bidding processes and clear post-transaction governance frameworks.
Investors typically require regulatory certainty, stable crude supply agreements and freedom to set commercially viable pricing structures.
For the Federal Government, the challenge lies in structuring the divestment to maximise long-term value while avoiding asset undervaluation or politically contentious sales.
Labour’s conditional support
PENGASSAN’s endorsement of majority private participation is conditional on safeguards for workers’ welfare, skills development and local content compliance.
The union emphasises that any sale of 51% stake in NNPCL refineries must include enforceable commitments on employment stability and investment in human capital.
Labour representatives also caution against full privatisation, warning that 100 per cent divestment could weaken national control over strategic assets.
Their position reflects a pragmatic middle ground: commercial logic with sovereign balance.
Broader implications for fuel markets
Nigeria’s refining capacity has long influenced foreign exchange demand and downstream price stability.
Reducing import dependence through functional local refining could ease pressure on external reserves and improve supply chain resilience.
If majority private ownership delivers higher utilisation rates and improved maintenance culture, analysts believe domestic refining margins could strengthen fiscal sustainability.
However, critics argue that structural reform alone will not resolve systemic issues such as pipeline vandalism, crude allocation disputes and regulatory bottlenecks.
Political economy of reform
The proposal to sell 51% stake in NNPCL refineries inevitably intersects with political considerations.
Past privatisation efforts in other sectors have drawn scrutiny over transparency and equitable participation.
To avoid public distrust, policymakers would need to ensure open bidding, independent valuation and parliamentary oversight.
Stakeholder engagement — including labour unions, host communities and industry operators — will likely shape the reform’s trajectory.
A turning point for Nigeria’s refineries?
As debate intensifies, one point is clear: the status quo is no longer widely defended.
PENGASSAN’s renewed advocacy signals that even organised labour recognises the limits of state-dominated refinery management.
Whether the Federal Government embraces the NLNG-style template and proceeds to sell 51% stake in NNPCL refineries remains uncertain. But the proposal has reignited national discourse on efficiency, accountability and the future of Nigeria’s refining architecture.
If executed with transparency and technical rigour, majority private participation could mark a structural reset for a sector long burdened by underperformance.
The coming months may determine whether Nigeria’s refineries finally transition from perennial rehabilitation projects to commercially viable industrial assets.
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