Business
Why Nigeria’s Refineries Are Not Working – PENGASSAN
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Monday identified lack of accountability and ownership as part of the reasons why the nation’s refineries have not worked.
Mr Babatunde Ogun, the PENGASSAN President, told newsmen in Lagos that the refineries could function effectively without undue pressure.
He called for the early passage of the Petroleum Industry Bill (PIB) now in the National Assembly to ensure that interests of oil workers were protected.
“The content of the bill must be made open for people to contribute and understand the discussions on it because people are worried on the movement from Joint Venture (JV) to Integrated Joint Venture (IJV).
“It is also good to tell the people the worth of NNPC before unbundling it. Nobody knows the worth of NNPC; nobody knows the liability of those organisations.
“Nobody knows the current worth of those refineries. Nobody knows what is required to transfer those refineries or upgrade them to the new standards,” Ogun said.
The PENGASSAN chief said it was pertinent to know the problems and the net worth of the organisation before the take off of the IJV.
Ogun said with this, the new management would be accountable to both the people and the Federal Government.
He said the pensions and gratuities of NNPC workers should be settled before the integrated joint venture takes over so that new investors would not be burdened with many encumbrances.
“It is regrettable that experts in Nigeria are replaced by less competent foreigners because of poor understudy,’’ Ogun said.
He said PENGASSAN was not averse to deregulation, saying that it only opposed the people who siphoned the money accruing from the subsidy without adding value to the nation’s economy.
Ogun said though no time was fixed for the deregulation of the sector, government should ensure that necessary infrastructural facilities were put in place before its implementation.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.