FG charged to disembark from import-driven deregulation
Federal government have been urged to revisit its import-driven deregulation of the oil and gas sector
This advice was given by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja.
The body’s President, Mr. Festus Osifo said though the union had never opposed deregulation, it would not support a deregulation policy shouldered on importation.
While speaking at a security awareness programme organised by the union, Osifo maintained: “That is why our position to support the rehabilitation of the refineries is justified.
“Nigeria will be ripe for full deregulation when the three refineries in the country are fully rehabilitated and are functioning under the efficient private sector.
“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-sufficient in refined petroleum products.”
He said the union accepted the decision of the Federal G
overnment to rehabilitate the nation’s refineries, but empathized that PENGASSAN would carry out advocacy for private sector management of the refineries.
According to him, “PENGASSAN has never advocated that refineries be sold. What we have always advocated 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 disclosed that, “PENGASSAN welcomes the rehabilitation of the refineries. Our advocacy, once the rehabilitation work is complete, will be to call on the government to divest from the refineries and allow the 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 the government fixes the refineries and then divests, the money that government will get will be reasonable.”
The PENGASSAN national president lamented that “a lot of our personnel have been kidnapped. PENGASSAN is, therefore calling on the Federal and State Governments to be alive to their responsibilities.
“They should fund the police and other security agencies adequately. The monies they give to police stations to fuel their cars are nothing to write home about. Security cost is making foreign direct investments in the oil and gas sector to move.”
