As Nigeria struggles to revive its long-troubled state-owned refineries, organised labour is proposing a structural reset: sell majority control to private refiners and let government step back. The Petroleum and Natural Gas Senior Staff Association of Nigeria says anything short of that risks repeating decades of inefficiency and political interference.

Speaking on Politics Today on Channels Television, PENGASSAN President Festus Osifo renewed the union’s long-standing call for the Federal Government to divest at least 51 percent equity in the refineries operated by the Nigerian National Petroleum Company Limited.

Osifo argued that the government should retain a minority stake while selling majority shares to experienced refiners — not political allies or passive portfolio investors. He pointed to the ownership structure of Nigeria LNG Limited, where international oil majors collectively hold 51 percent, as a model that has delivered operational stability and profitability.

The proposal comes at a sensitive moment for Nigeria’s energy sector. Following the commercialisation of the national oil company and the ongoing debate over refinery performance, expectations are rising that reforms must go beyond cosmetic adjustments.
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However, most initial reports focused largely on the headline demand — “sell 51%” — without unpacking the deeper implications. Beyond the official statement, the issue is less about ownership percentages and more about governance credibility.

Nigeria’s four state-owned refineries have consumed billions of dollars in turnaround maintenance over the past two decades, yet have rarely operated at optimal capacity. Several reform attempts have stalled due to political resistance, labour concerns, and regulatory uncertainty. That history fuels skepticism that incremental reforms can fix structural inefficiencies.

Osifo’s intervention signals a shift in tone from organised labour. Traditionally cautious about privatisation, PENGASSAN is now openly supporting majority private participation — provided the state retains minority oversight for energy security reasons. That conditional support suggests labour recognises the commercial limitations of full government control.

The timing also intersects with renewed attention on private refining. Over the weekend, NNPCL’s Group Chief Executive Officer Bayo Ojulari toured the 650,000 barrels-per-day Dangote Petroleum Refinery, praising it as a symbol of technological ambition. NNPCL currently holds a 7 percent stake in the privately owned facility — a stark contrast to its full ownership of state refineries.

What makes this more complex is the balancing act between efficiency and national control. Full privatisation could maximise operational independence but expose the sector to market volatility. Retaining government influence, on the other hand, has historically opened the door to political interference and delayed decision-making.

Energy security remains central to the debate. Nigeria imports a significant portion of its refined petroleum products despite being Africa’s largest crude producer. Frequent fuel supply disruptions have had economic ripple effects — from inflation to foreign exchange pressure. Proponents of majority private control argue that commercial discipline could stabilise domestic refining and reduce import dependence.

Yet the deeper issue is investor confidence. Selling 51 percent is not merely a financial transaction; it requires regulatory clarity, transparent bidding, credible asset valuation, and long-term policy consistency. Without those, even experienced refiners may hesitate.

The issue now is whether the Federal Government can structure a divestment process that attracts credible technical investors while maintaining safeguards for national energy stability. The bigger risk is that partial reforms without governance overhaul could deter investment and prolong refinery underperformance.

What authorities do next will determine whether Nigeria’s refining sector transitions into a commercially driven industry — or remains trapped in a cycle of political management and recurring bailouts.