Key Points
- PENGASSAN leader calls for stable policies to attract long-term investment.
- Osifo says frequent regulatory changes create uncertainty for investors.
- He proposes greater private-sector equity participation in refineries.
- Labour leader says investment would support energy security and job creation.
Main Story
The outgoing President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Festus Osifo, has urged the Federal Government to provide a stable policy environment and encourage private investment to drive growth in Nigeria’s oil and gas sector.
Osifo made the call on Monday during an engagement with members of the Labour Writers Association of Nigeria (LAWAN) in Lagos.
He said frequent changes in policies and regulations could undermine investor confidence, stressing that investors needed clarity about their obligations before committing capital to the industry.
According to him, investors needed certainty regarding taxes, royalties and other financial obligations.
Osifo acknowledged some gains from the Petroleum Industry Act (PIA), including the establishment of sector regulators, the conversion of the Nigerian National Petroleum Corporation into a limited liability company and the creation of the Host Communities Development Trust.
He, however, expressed concern over subsequent policies and executive orders that he said could alter provisions of the law and create uncertainty for investors.
The labour leader said government should allow existing laws and regulations to operate for a reasonable period so that investors could make long-term decisions with greater confidence.
He said increased investment and expansion in the oil and gas sector would create more opportunities for Nigerians while strengthening the country’s energy security.
On the nation’s refineries, Osifo called for increased private-sector participation, saying PENGASSAN had consistently supported an ownership model similar to that of Nigeria Liquefied Natural Gas.
He proposed that private investors should be allowed to acquire up to 51 per cent equity in refineries, while government retains 49 per cent.
According to him, such an arrangement would reduce government interference and allow refinery operations to be guided by commercial considerations.
Osifo said some refineries had been shut down because they were operating at losses, rather than simply because they were not functioning.
He therefore welcomed the current move to introduce equity partners into the refinery business, describing it as a positive development.
The PENGASSAN leader said private equity participation could attract investment, improve refinery operations, strengthen energy security and create employment opportunities.
He also said protecting workers’ jobs and improving remuneration remained priorities under his leadership.
Osifo said despite divestments in the oil and gas sector, no PENGASSAN member had lost their job as a result of the divestments.
Earlier, the Chairman of LAWAN, Mr Toba Agboola, commended Osifo for his contributions to the association and the labour movement.
Agboola described Osifo as a friend and member of the association’s family and appreciated his support and relationship with labour writers.
The Issues
Nigeria’s oil and gas sector continues to require substantial investment, but policy uncertainty can affect investors’ willingness to commit capital for the long term. Osifo is advocating greater regulatory stability alongside increased private participation in refinery operations.
What’s Being Said
“Investors need to know their tax, royalty and other obligations before committing funds to the oil and gas industry,” – Festus Osifo, outgoing President, PENGASSAN
“For us, one of the ways to attract investment is for you to have some level of certainty in the industry,” – Festus Osifo, outgoing President, PENGASSAN
“Bringing in equity partners will encourage investment, improve refinery operations, strengthen energy security and create more employment opportunities,” – Festus Osifo, outgoing President, PENGASSAN
What’s Next
Osifo is calling for greater policy consistency and private-sector participation in the refinery business, with a proposed 51 per cent private-sector and 49 per cent government ownership structure.
Bottom Line
PENGASSAN is pushing for greater policy certainty and private-sector participation as key measures for attracting investment, improving refinery performance and strengthening Nigeria’s energy security.
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