Nigeria’s oil and gas industry is at the forefront of the concerns of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) as it calls on the Federal Government to increase its stake in the Dangote Refinery. According to the Chairman of PENGASSAN, Mr. Festus Osifo, an increase in government stake from 7% to 45% would ensure availability of products to meet domestic demand, thereby ensuring energy security for citizens and energy supply.
PENGASSAN’s call resonates as an indisputable necessity as there is a real need to consolidate domestic production capacity to meet the growing demand for petroleum products. The success story of Nigeria Liquefied Natural Gas (NLNG) is an inspiring benchmark for the sector, prompting consideration of an increased role for government in the refinery sector.
In addition to encouraging increased government participation in refineries, PENGASSAN stresses the importance of modernizing and maintaining domestic oil depots, which are essential to ensure smooth distribution of petroleum products and strengthen national strategic reserves. Expansion of the pipeline network is also raised as a key measure to relieve pressure on roads from trucks carrying petroleum products.
In addition, digital intervention is proposed to combat crude oil theft, improve security in the sector, and facilitate investments by reducing bureaucratic hurdles. PENGASSAN stresses the need to severely punish those involved in crude oil theft to deter further illegal activities.
Finally, the call for full implementation of the Petroleum Industry Act (PIA) is crucial to ensure equitable distribution of oil revenues and promote an investment-friendly environment. By encouraging greater private sector participation, innovative use of artificial intelligence, and adoption of sustainable practices, Nigeria could strengthen its position in the energy sector and ensure economic growth.
In summary, PENGASSAN’s recommendations highlight the critical challenges facing Nigeria’s oil and gas industry. By adopting a collaborative approach between government, private stakeholders, and unions, the country could realize its potential and establish its leadership position on the international energy scene.