Onyebuchi Ezigbo in Abuja
Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has said that it was against the sale of the country’s refineries but would advise that they be remodeled under the Public-Private-Partnership.
The association said they support the three per cent provided for oil producing communities in the recently passed Petroleum Industry Bill, saying it was a good starting point.
Speaking at the maiden edition of the group’s security awareness campaign in Abuja, the National President of PENGASSAN, Mr. Festus Osifo, said that the association had never advocated for the refineries to be sold.
He said:”What we have always advocated for is that there should be a Public-Private partnership in such a way that the government will not be involved in the day-to-day running of the refineries. Why is the federal government not exploring the possibility of adopting the LNG model where the government holds minority 49 per cent while the private sector will take 51 per cent? That model has worked very well.”
He said that PENGASSAN welcomed the rehabilitation of the refineries, adding that it’s position was that once the rehabilitation work was complete, government should divest from the refineries and allow private sector to run all of them.
“If we were to sell the refineries the way they are, they will be sold as scraps. If government fix the refineries and then divest, the money that government will get will be reasonable.”
He disclosed that while PENGASSAN had never opposed deregulation as a policy, it would not support a deregulation policy that is hinged on importation.
“That is why our position to support the rehabilitation of the refineries is justified. Nigeria will be ripe for a full deregulation when the three refineries in the country are fully rehabilitated and are functioning under the private sector that is efficient.
“With the refineries coming on stream in the next few months and with the Dangote refinery coming on board as well, Nigeria will soon be self-suffient in refined petroleum products,” he said
