PENGASSAN Tasks FG to Increase Equity in Dangote Refinery to 45%

By Adedapo Adesanya

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the federal government to ensure that the Nigerian National Petroleum Company (NNPC) Limited increases its stake in Dangote Refinery and Petrochemicals from the current 7 per cent to at least 45 per cent.

Nigeria formerly had a 20 per cent stake, but recently, the majority share owner in the company, Mr Aliko Dangote, said it has dropped to 7 per cent.

PENGASSAN, however, called on the Nigerian government to hold more equity in the 650,000 barrels per day structure, stating that this will ensure further energy assurance and security for the citizens.

It also urged the federal government to create strategic petroleum product reserves, advising the government to partner with players in the private sector to maintain the already available petroleum product storage in the six geopolitical zones in the country.

According to it, when operational, petroleum products will be stored there and only made available when there is a shortage in supply.

It opined that 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.

The President of PENGASSAN, Mr Festus Osifo, stated these during a media briefing in Lagos on Tuesday, which presented the association’s communique and recommendations from the 3rd edition of PENGASSAN’s Energy and Labour Summit (PEARLS 2024).

“The communique was jointly signed by Mr Osifo and Secretary-General, PENGASSAN, Mr Lumumba Okugbawa.

Mr Osifo called for the Intensification of local production of petroleum products. He also argued that the floating of the naira which led to the devaluation of the naira contributed substantially to the high cost of fuel pump price because of the dollar to the naira conversion and not necessarily the removal of fuel subsidy by President Bola Tinubu on May 29, 2023.

He also argued that it caused a high amount of revenue to the Federation Allocation Accounts Committee and high revenue generation by government agencies and parastatals.

“Ramping up efforts to make the nation’s four refineries work; once operational, the government should divest majority shareholdings and own at most 49 per cent of the shareholding in the four refineries. Core investors will be brought in to take the 51 per cent as applicable in NLNG.

“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.”

He also called for more provision of Compressed Natural Gas (CNG) infrastructures across the country.

He stated that 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.

“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.

“To achieve energy security, energy must be affordable. To ensure affordability, the government must do all it can to stabilize the exchange rate as the continuous slide of the Naira will greatly hamper the affordability of energy in Nigeria.”

He also said the government should give more incentives to attract the International Oil and Gas Companies and the Indigenous Oil and Gas Producers to invest in more crude oil production in the next five years.

“50 per cent of the accruable revenue should be dedicated to investing in renewable energy like solar, batteries, wind, hydrogen, hydro, etc.

“Most IOCs are currently involved in developing Greener Energy strategies and businesses across the globe.

“Nigeria’s government must partner with them to accelerate and deepen this in the Nigerian market,” the communique added.