The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has accused the federal government and the Nigerian National Petroleum Company Limited (NNPCL) of allowing political interference to cripple the nation’s refineries. He declared that the repeated closures of the state-owned refineries — especially the Port Harcourt facility — are largely driven by political decisions rather than genuine technical issues.
Speaking at a world press conference held in Abuja on Monday, Osifo stated, “What we are witnessing with the refineries, particularly Port Harcourt, is far beyond routine maintenance or operational limitations. Politics has hijacked the management of these critical assets.”
Refineries Are Victims of Politics, Not Just Technical Problems
While acknowledging that the Port Harcourt refinery had been shut for scheduled maintenance, Osifo emphasized that the root cause of the persistent inefficiency across all refineries lies in poor governance and political manipulation.
“We’ve repeatedly raised alarms for over 15 years urging the government to overhaul the refineries’ management structure. The same challenges persist because political interests continually override sound operational decisions,” he stated.
He strongly advocated for the adoption of the Nigerian Liquefied Natural Gas (NLNG) operational model in the refinery sector. According to him, the NLNG’s semi-privatized model, which minimizes government control and maximizes private sector expertise, has proven successful and should be replicated.
NLNG Model: A Proven Solution Ignored
Osifo stressed that Nigeria’s downstream industry could become commercially viable if the government reduced its equity stake in the refineries and handed operational control to globally recognized private investors.
“The NLNG model works because it limits government’s ownership to 49%, allowing experienced, international stakeholders to manage operations. This approach enhances transparency, cuts out political interference, and has turned NLNG into one of Nigeria’s most profitable ventures,” he explained.
He questioned why the federal government has consistently failed to apply this same model to the nation’s three refineries, even though calls for reform have remained consistent for over a decade.
“Why is there resistance to a working model? If it works for gas, why not for refining crude?” Osifo asked.
Fuel Prices Inflated Despite Falling Global Oil Prices
Addressing another major concern, the PENGASSAN president slammed petroleum marketers for exploiting Nigerians through unjustified fuel pricing. He argued that the current retail price of Premium Motor Spirit (PMS), popularly known as petrol, does not reflect market realities.
According to Osifo, the international price of crude oil has dropped significantly from around $80 per barrel to between $62 and $65, yet this decline has not translated to lower pump prices.
“Back when crude oil sold at $80, petrol retailed for nearly N900 per litre. Today, crude has fallen below $65, but petrol still sells at almost the same rate. This is unjustifiable,” he stated.
He further explained that when one calculates the PLATTS index — the global pricing benchmark for refined products — and adjusts for current crude prices, the pump price should fall between N700 and N750 per litre.
“We are not advocating for subsidy; we are demanding fair pricing under a deregulated regime. Deregulation must not become a free pass for extortion,” he warned.
Security Crisis Forcing Oil Majors to Exit Nigeria
Osifo also raised alarm over worsening insecurity in Nigeria’s oil-producing regions, which he said has become a major deterrent for foreign investment. He revealed that multinational oil companies are increasingly exiting Nigeria due to the soaring costs of protecting their operations.
“Insecurity is the leading cause of divestment in the oil and gas sector. International firms are pulling out because they can no longer afford to secure their personnel and assets,” Osifo said.
He listed countries like Mozambique, Angola, Guyana, and Congo as emerging destinations for these firms due to their relatively stable environments and lower operational risks.
Union Repeats 15-Year-Old Demand for Structural Reform
In closing, the PENGASSAN president reiterated that the union’s long-standing demand for structural reform in the management of Nigeria’s refineries remains valid and urgent.
“If Nigeria is serious about energy security and economic revival, we must eliminate politics from our refinery operations. The solution is simple: adopt a transparent, investor-led structure like that of NLNG and stop using national assets as political tools,” he asserted.
The press briefing delivered a clear message: unless the government embraces bold reforms and eliminates political interference, Nigeria’s downstream petroleum sector will continue to struggle with inefficiency, public distrust, and capital flight.
