Why Nigeria refineries are failing – PENGASSAN

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has identified the reasons why Nigeria’s state-owned refineries are failing.

The association said that the refineries are not failing because Nigerians lack the skills but as a result of political interference which denied workers the tools, resources, and enabling environment to deliver effectively.

Mr Festus Osifo, the association’s president, who stated this on Friday at the ongoing 4th PENGASSAN and Labour Summit (PEALS 2025), also identified widespread corruption and mismanagement as reasons for the failure of the refineries.

The News Agency of Nigeria (NAN) reports the three-day summit held in Abuja is themed, “Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment and Incremental Production.”

Osifo said Nigeria’s energy future requires more than skilled manpower, and there is the urgent need for tools, policy stability, and supportive reforms to drive growth in the energy sector.

According to him, during the COVID-19 pandemic, Nigerian workers successfully operated offshore platforms after expatriates departed.

He said the development had proven that the country possessed skilled manpower capable of sustaining global-standard energy production without disruption.

According to Osifo, policy inconsistencies and political interference undermine investor confidence and cripple the nation’s oil and gas sector.

He also expressed concerns over frequent changes to petroleum laws, warning they discourage vital investments.

He added that predictability in fiscal regimes is key to attracting petrodollars into Nigeria’s economy and long-term infrastructure development.

“We must have an industry that investors can predict in five or ten years. Constantly changing policies will only chase away investors and delay sectoral growth,” he said.

On training, Osifo urged both indigenous and international operators to prioritise worker capacity building.

He said it would ensure that Nigerians remain globally competitive and prepared for the changing demands of the energy and labour markets.

In a goodwill message the Secretary General of the Trade Union Congress (TUC), Mr Nuhu Toro, commended PENGASSAN’s foresight, describing the summit as a model platform for strategic dialogue in the energy sector.

“This summit is a testament to the foresight and strategic thinking required to navigate industry dynamics and their implications for organised labour,” he said.

Toro urged other unions under the TUC to emulate PENGASSAN’s initiative.

He said that modern engagement, dialogue, and innovation remain vital tools for advancing workers’ welfare and strengthening collective bargaining power. (NAN)

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