Festus Osifo, President of PENGASSAN Says Government Should Sell 51% Stake in NNPC Refineries

Festus Osifo, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has reignited the national conversation on the future of Nigeria’s refineries by openly advocating for the sale of a 51 per cent stake in NNPC-owned refineries. According to him, partial privatization remains the most realistic path to reviving the country’s long-struggling refining sector.

Festus Osifo Advocates Majority Stake Sale as Path to Refinery Revival

Festus Osifo has stated that the Federal Government should urgently sell a 51 per cent controlling stake in the Nigerian National Petroleum Company (NNPC) refineries to competent private investors. He argued that decades of full government ownership have failed to deliver efficiency, profitability, or consistent production, leaving the refineries largely moribund despite repeated rehabilitation efforts.

Festus Osifo explained that partial privatization would introduce stronger corporate governance, operational discipline, and performance-driven management into the refinery system. He noted that allowing private investors to hold a majority stake would reduce political interference while encouraging transparency, accountability, and commercial viability.

Festus Osifo further stressed that this approach aligns with global best practices in the oil and gas industry, where governments increasingly act as regulators rather than operators. He maintained that Nigeria cannot afford to continue subsidizing inefficiency, especially at a time of fiscal pressure and rising energy demand.

Festus Osifo Says NNPC Management Already Working Toward Divestment

Festus Osifo disclosed that the current management of NNPC Limited is already moving in the direction of selling a controlling stake in the refineries. According to him, internal restructuring and commercial reforms within NNPC indicate a clear shift away from total state control toward private-sector-led operations.

Festus Osifo revealed that discussions around equity participation have progressed beyond speculation, noting that serious investors have shown interest in acquiring shares in the refineries. He emphasized that investor appetite remains strong despite the refineries’ troubled history, largely because of Nigeria’s massive domestic fuel market.

Festus added that with the right investors, the refineries could be modernized, efficiently managed, and integrated into regional and global supply chains. He said such investments would not only improve output but also reduce Nigeria’s dependence on imported petroleum products.

Festus Osifo Highlights Economic Benefits of Partial Privatization

Festus Osifo pointed out that selling 51 per cent of NNPC refineries would significantly ease the financial burden on the Federal Government. He noted that the proceeds from the sale could be redirected to critical sectors such as education, healthcare, and infrastructure, while the private sector shoulders operational risks.

Festus argued that improved refinery performance would translate into job creation, energy security, and price stability in the downstream sector. He stressed that functional local refineries would conserve foreign exchange currently spent on fuel imports and strengthen the national economy.

Festus concluded that partial privatization is not a loss of national assets but a strategic reform aimed at long-term sustainability. He urged policymakers to act decisively, insisting that selling a majority stake in NNPC refineries is a necessary step toward a more efficient, competitive, and self-reliant Nigerian oil and gas industry.