Nigerian oil workers under the auspices of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Nigerian government to increase its stake in the 650,000 barrels per day Dangote Refinery for the benefit of the country
President of the association Festus Osifo, who spoke on behalf of the members yesterday, advised the federal government to increase its stake in the Dangote refinery to at least 45 percent.
In September 2021, NNPC has a 20 percent interest in Dangote refinery for $2.76 billion.
However, on July 14, Aliko Dangote, the refinery’s president, insisted that NNPCL, the national oil company now owns 7.2 percent stake in the
Speaking on the situation, Osifo highlighted the importance of the federal government reconsidering its decision to reduce its stake in the refinery.
“The federal government should increase its shareholding stake in Dangote’s refinery from the current 7 percent to at least 45 percent. This will ensure further energy assurance and security for the citizens,” he said.
The PENGASSAN president also recommended ramping up efforts to make the nation’s four refineries functional.
Once operational, Osifo advised the government to divest majority shareholdings and own at most 49 percent of the shareholding in the four refineries.
He said core investors would be invited to take the remaining “51 percent as applicable in NLNG”.
Osifo said the government should partner with players in the private sector to maintain the already available petroleum product storage in the six geopolitical zones in the country.
“When operational, petroleum products will be stored there and only made available when there is a shortage in supply,” he said.
“This will help in eliminating the bad roads and severe erosion-imposed perennial shortages that often lead to queues at petrol stations across the country.
“Expansion of pipelines that could be used in the delivery of refined petroleum products across the length and breadth of the country as this will reduce the pressure put on our roads by trucks carrying these products.”
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Speaking further, he asked the government to provide compressed natural gas (CNG) infrastructures across the country.
“Compressed natural gas (CNG) has been adjudged to be the most affordable and cleaner form of energy that is required to propel a car in the country today,” Osifo said.
“Sadly, the infrastructure for this product is sparsely distributed across the country. The government through its partners should deepen the reach of these infrastructures across every city in Nigeria.”
According to the PENGASSAN president, to achieve energy security, energy must be affordable.
To ensure affordability, Osifo said the government must strive to stabilise the exchange rate as the continuous slide of the naira will greatly hamper the affordability of energy in Nigeria.
