PENGASSAN To FG: Sell 51 Percent Shares In NNPCL, Executive Order Not The Solution

In the aftermath of President Bola Ahmed Tinubu Executive Order to the Nigerian National Petroleum Company Limited, NNPCL to pay all oil and gas revenues to the Federation Account, President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Festus Osifo has called on the federal government to diversify interests from the state owned refineries.

Following the president’s last week order, not a few Nigerians insist that the action will reduce corruption in the government -controlled oil company, regarded by many as a cesspit of corruption.

The PENGASSAN president said the only way out of the current inefficiency and corruption in the state-owned oil firm, is for the government to sell 51 percent stakes to investors, saying the same model has worked in the Nigerian Liquefied Natural Gas Company, NLNG.

The magazine had earlier  reported that the union had warned that over 4000 jobs risk being lost because of the Executive Order.

Reaffirming the Union’s position on the issue, Osifo, who spoke on Channels Television programme, Sunday Politics yesterday said the solutions to NNPCL current problem is for the federal government to sell 51 percent stakes in the refineries to investors who have the capacity to turn them around.

The sale, Osifo said, should not be politicised or made to favour cronies of those in government.

He stressed that the inefficiency in the refineries is because they are under state control, saying the federal government should hands off more that half of its stakes, and become a minority shareholder.

The four NNPCL owned refineries are currently comatose despite past efforts by the government to make them work.

“ The government should take a minority stake in the refinery and sell the majority stake,” Osifo said.

“At least, the government should sell a minimum of 51 per cent to investors. And these investors should be refiners. They shouldn’t just be portfolio investors or politicians or friends of the political class.

“But sell at least 51% of this refinery, you sell it to refiners. So we are not against the government selling a majority stake in the refinery.”

He said new investors will be able to make sound decisions, capable of driving the refineries to profitability.

He said, “So when they are making decisions, their decisions are not subjected to any political whims and caprices. That is actually what we have advocated. The government should divest its interest in the refineries and allow a minimum of 51 per cent of its shareholding.

“Give it to private investors, let them invest, and allow them to come around the refineries. The advantage of it is that it will not be politicised. Businessmen will make business decisions that will impact and help them make a profit. That has been our position.

“Thank God, that is the direction this new NNPC management has said they are driving it to bring in investors and divest from it. But they should not sell it 100 per cent. The reason is because of energy security.”