Increase stake in Dangote Refinery to 45% – PENGASSAN to FG

The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Festus Osifo, has called on the federal government to increase its stake in the Dangote Refinery from 7% to at least 45%.

Osifo made this recommendation during the presentation of a communiqué at the 3rd edition of the PENGASSAN Energy and Labour Summit in Lagos.

According to Osifo, acquiring a larger stake in the refinery will help ensure product availability to meet local demands and foster energy security. He suggested that the model used in the Nigerian Liquefied Natural Gas (NLNG) project, where the government owns a minority stake, should be applied to both the Dangote Refinery and the nation’s four refineries.

He advised the government to divest its majority shareholdings in these refineries to core investors, retaining at most 49% of the shares, allowing the private sector to hold the majority.

Osifo also emphasized the need for upgrading interland petroleum depots in all six geopolitical zones and collaborating with the private sector to fix dilapidated depots.

Furthermore, he highlighted the importance of expanding pipeline networks for the transportation of refined petroleum products to ease the pressure on the nation’s road infrastructure.

In addition, PENGASSAN recommended digital interventions to curb crude oil theft, restructuring the security architecture, and simplifying the investment process in the gas sector to attract more investors.

Osifo stressed that individuals caught stealing crude oil should face severe punishments to serve as a deterrent to others.