By Samuel Godspower
04 December 2024
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to privatise 51% of its stakes in the nation’s four public refineries, proposing a model similar to the Nigerian Liquefied Natural Gas (NLNG) partnership.
The association’s president, Festus Osifo, shared this recommendation during the National Executive Council (NEC) meeting held in Abuja. He lauded the Nigerian National Petroleum Company Limited (NNPCL) for reviving the old Port Harcourt refinery but emphasised the importance of ensuring efficient refinery management through private-sector participation.
Osifo stated, “We congratulate NNPCL on the rehabilitation and successful startup of the old Port Harcourt refinery. However, PENGASSAN remains committed to advocating for the complete rehabilitation of the remaining refineries. We will push for their eventual privatisation using the NLNG model, where private ownership ensures efficiency.”
The PENGASSAN president raised concerns about the increasing number of foreign junior workers, particularly from India, entering Nigeria’s oil and gas sector. He urged the government to strengthen regulatory mechanisms to prioritise local content, adding that unchecked foreign labour undermines economic growth.
Osifo also highlighted the plight of oil-bearing communities, which face environmental degradation and underdevelopment. He urged the full implementation of the Petroleum Industry Act’s host community provisions to foster stability and development.
“The government must focus on proactive environmental management, regulatory enforcement, and community engagement to address these challenges,” Osifo noted.
On fiscal policies, PENGASSAN proposed increasing the zero-tax threshold from N800,000 to N1.5 million annually to relieve low-income earners, especially with the recent N70,000 minimum wage implementation.
Osifo remarked, “The current threshold is too low. With wage increases, more workers now fall into the taxable bracket. The tax reforms need urgent revision to ensure relief for low-income earners.”
He also announced PENGASSAN’s participation in the upcoming public hearing on tax bills affecting regulatory commissions, stressing the need for clarity in revenue collection processes.
Osifo affirmed the association’s support for the Trade Union Congress (TUC) on-strike actions in states yet to implement the new minimum wage. “We stand with organised labour movements and urge state governments to comply to avoid industrial actions,” he warned.
