Oil workers warn Nigeria risks energy security with full refinery sale

Nigeria’s powerful oil workers’ union has warned that the Federal Government risks handing away the country’s energy security if it goes ahead with plans to sell off its refineries entirely to private investors.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) says it is firmly opposed to the sale of a 100 per cent government stake, arguing that such a move would strip the state of any meaningful control over critical national assets.

Speaking on Sunday Politics, Festus Osifo, President of PENGASSAN, said the union instead supports a partial privatisation model that would see the government retain a significant minority stake.

According to Osifo, selling 51 per cent of the refineries while holding on to 49 per cent strikes a balance between attracting private-sector efficiency and safeguarding national interests.

He warned that a full divestment would leave Nigeria exposed, particularly in times of global supply shocks, stressing that energy security should not be sacrificed for short-term financial gains.

Osifo revealed that the union’s position is not new, noting that PENGASSAN had been making the same argument long before his tenure, including during the leadership of Peter Esele.

He maintained that successive governments ignored the advice, a failure he said has contributed to the prolonged decline of the country’s refining capacity and the continued dependence on fuel imports.

Dismissing scepticism about investor interest, Osifo insisted that Nigeria’s large population and fuel demand make the refineries attractive to serious investors, provided they are run without political interference.

He argued that refineries can only function efficiently when insulated from political pressures and managed on strict commercial principles.

However, the union leader issued a final warning: any sale of government assets must be preceded by a thorough and transparent valuation process.

Without proper valuation, he cautioned, Nigeria risks selling strategic infrastructure far below its true worth, repeating mistakes that have plagued past privatisation exercises under the Federal Government of Nigeria.