Nigeria’s Energy Security: PENGASSAN Urges Government to Increase Stake in Dangote Refinery
As Nigeria continues to grapple with energy shortages and skyrocketing fuel prices, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to take bold steps to ensure energy security for the country. In a recent media briefing, PENGASSAN’s President, Comrade Festus Osifo, urged the government to increase its stake in Dangote Refinery and Petrochemicals from the current 7% to at least 45%.
Osifo emphasized that this move would ensure further energy assurance and security for the citizens, stating that the government should also create strategic petroleum product reserves by partnering with private sector players to maintain existing storage facilities in the six geopolitical zones. This, he believes, would eliminate the perennial shortages that lead to queues at petrol stations and reduce the pressure on the country’s roads.
PENGASSAN also urged the government to intensify local production of petroleum products, arguing that the floating of the naira contributed substantially to the high cost of fuel pump price due to the dollar-to-naira conversion. The association also called for the development and strengthening of the country’s oil and gas value chain to ensure a more efficient and reliable downstream distribution system.
The summit highlighted the need for a diversified Energy Mix, emphasizing the importance of striking a balance between harnessing Nigeria’s vast hydrocarbon resources and embracing renewable energy. Nigeria currently relies heavily on fossil fuels, but the world is transitioning to greener energy, making it crucial for the country to implement its Energy Transition Plan.
Osifo stressed that the government should provide more incentives to attract International Oil and Gas Companies and Indigenous Oil and Gas Producers to invest in more crude oil production over the next five years. He also proposed that 50% of the country’s revenue should be dedicated to investing in renewable energy sources like solar, batteries, wind, hydrogen, and hydro.
The association urged the government to develop a practical and implementable Energy Mix policy, which would set the policy direction and serve as a basis for negotiation with institutions and stakeholders who intend to invest in different energy sources.
As Nigeria continues to navigate its energy challenges, PENGASSAN’s recommendations offer a timely and crucial intervention. With the country’s energy security hanging in the balance, it is imperative that the government takes bold steps to ensure a sustainable and reliable energy supply for its citizens.
