PENGASSAN won’t support import induced deregulation — Osifo
The President, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), comrade Festus Osifo has insisted that his Association would not support any deregulation policy hinged on importations.
He added that PENGASSAN would not accept any policy that would not add value to the industry and Nigeria as a whole.
Osifo while making this known at the maiden edition of PENGASSAN Security Awareness Campaign in Abuja, said PENGASSAN has never opposed deregulation as a policy.
Osifo revealed that “That is why our position to support the rehabilitation of the refineries is justified. Nigeria will be ripe for a full deregulation when the three refineries in the country are fully rehabilitated and are functioning under the private sector that is efficient.
“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.”
According to him, PENGASSAN has never advocated for the refineries to be sold, but has always campaigned for a Public-Private partnership in such a way that 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 government holds minority 49 per cent while the private sector will take 51 per cent? That model has worked very well. PENGASSAN welcomes the rehabilitation of the refineries.
“Our advocacy once the rehabilitation work is complete will be to call on government to divest from the refineries and allow 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 government fix the refineries and then divest, the money that government will get will be reasonable,” he added.
Reacting to the three per cent profit for host community, he said, “For us in PENGASSAN, three per cent of operating expenditure is a good place to start. Let the bill be signed to end the uncertainty that shrouded the petroleum industry.
“The host communities can then seek amendment. In my rough estimation gotten from the expenditure of the oil companies in the last one year, three per cent translates to about $45 million.”
