Nigeria’s oil workers’ union, PENGASSAN, has called on the government to privatize the nation’s failing refineries, using the successful Nigeria LNG (NLNG) model as a blueprint for efficiency.
PENGASSAN President Festus Osifo is not just suggesting privatization; he is advocating for a specific, proven blueprint: the Nigeria Liquefied Natural Gas (NLNG) model.
The Nigeria LNG Limited is often cited as one of Nigeria’s most successful public-private partnerships. NLNG is owned by a consortium of four companies: NNPC (49%), Shell (25.6%), TotalEnergies (15%), and Eni (10.4%).
This structure is key. The government retains a significant minority stake, ensuring it benefits from profits and has a voice, but operational control and majority decision-making lie with international private consortia that bring proven technical expertise, capital, and efficient management practices.
This has kept NLNG highly profitable and professionally run, largely insulated from the political interference that plagues state-owned enterprises. Osifo argues that the refineries are crippled by “politics.” This typically refers to political appointments, management positions based on patronage rather than expertise.
The summit’s theme—“Building a Resilient Oil and Gas Sector”—provides the context for Osifo’s comments. His focus on refinery efficiency is one pillar of building this resilience. The other speakers addressed other critical pillars:
NMDPRA on ESG and HSE Engr. Farouk Ahmed said that to attract investment and remain competitive globally, Nigeria must adopt international best practices.
Engr Farouk also said investors and multilateral lenders are increasingly allocating capital based on ESG criteria. A company with poor environmental records, negative community relations, or corrupt governance will struggle to secure funding
This is non-negotiable for operational excellence. Poor safety records lead to disasters, loss of life, costly downtime, and reputational damage.
Also Read: Shipping Woes Slash Dangote Refinery’s CNG Truck Fleet Plans
Engr. Felix Ogbe on Human Capacity Development addressed a fundamental long-term challenge. Ogbe makes a crucial point saying assets without skilled people are useless. ‘Human Capital is the True Oil’ this metaphor stresses that Nigeria’s greatest resource is its people, not just its crude oil reserves.
Investing in education and vocational training is essential not just for today’s operations but for navigating the energy transition(e.g., moving into renewables, hydrogen, carbon capture) and ensuring the workforce remains relevant and employed.
Osifo’s warning against companies preventing unionization is a classic labor stance. PENGASSAN is asserting its role in protecting workers’ rights to collective bargaining, which it sees as essential for ensuring fair wages, safe working conditions, and job security—all key components of the “Social” aspect of ESG that the NMDPRA mentioned.
The summit presents a multi-faceted but interconnected vision for fixing Nigeria’s oil and gas sector. It suggests that the Nigeria’s oil and gas is fixed by adopting the NLNG model—government ceding majority control to expert private operators to eliminate politics and inefficiency; Embrace ESG and HSE principles to attract foreign investment, reduce environmental impact, and ensure social license to operate.
Also, investment in people, human capacity development to build a skilled workforce capable of managing current assets and adapting to the future energy landscape.
In essence, PENGASSAN is arguing that the government’s role should shift from being an incompetent operator to a strategic regulator and minority investor, allowing professional private players to drive efficiency while the country focuses on building a skilled, safe, and sustainable industry for the future.
