We must privatise pipeline assets to safeguard energy sector — PETAN Chairman
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Engr. Wole Ogunsanya, has called for the privatisation of Nigeria’s oil and gas pipelines to ensure the continued sustainability of the energy sector.
Speaking at the recently concluded Nigeria International Pipeline and Security Conference (NIPITECS), the PETAN Chairman argued that privatisation is in the best interest of Nigerians, describing it as a “commonwealth solution” to guarantee efficiency and sustainability in the nation’s critical oil and gas industry.
Engr. Ogunsanya explained that the rationale behind the privatisation of Nigeria’s pipeline network is the opportunity for private investors to hold 51% ownership in the nation’s pipelines, with oil producers, including the NNPC Ltd. and IPPG, who own the crude oil, as shareholders.
This model, he stated, is not new in Nigeria, as it has been successfully implemented in the case of the Nigeria Liquefied Natural Gas (NLNG) project, which continues to be a source of pride for the industry. He noted, however, that there is still room for improvement in establishing more LNG facilities and increasing gas feedstock.
“Across the world,” he continued, “life expectancy of populations is closely tied to energy security, which ensures access to healthcare, infrastructure that improves living standards, affordable food, better housing, and education.”
With Nigeria’s life expectancy currently at 54.46 years (according to 2023 UN data), Engr. Ogunsanya pointed out that this indicates a lack of energy security for Nigerians, meaning the majority of the population lacks these essential services.
“For Nigeria, oil and gas are the catalysts for our economic growth. Capacity must be built across the entire value chain— from resource discovery to production, refining, transportation, and the downstream sector. Developing this capacity within the country will secure Nigeria’s position as one of the top 20 economies in the world,” he declared.
He also expressed regret that Nigeria has failed to use the proceeds from crude oil sales over the decades to build the nation. Despite this, he commended indigenous companies and professional associations like PETAN and the Petroleum League of Nigeria (PLAN) for their efforts in building local capacity and creating jobs. This, he said, has had a positive, multiplier effect along the value chain of the industry and the broader regional economy.
