Sell 51% stake in refineries to IOCs, PENGASSAN advises govt

Blames weak institutions for influx of expatriates

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged the Federal Government to sell 51 per cent stakes in the four public refineries to the private sector to ensure they remain operational.

The association insisted that privatisation like the NLNG model where the government holds 49 per cent while the private sector owns 51 per cent would ensure efficient management of the refineries.

PENGASSAN President, Festus Osifo, stated this in Abuja yesterday at the association’s National Executive Council (NEC) meeting, confirming that the old Port Harcourt refinery has, indeed, come on stream.

“We wish to congratulate NNPCL for the rehabilitation and successful startup of the old Port Harcourt refinery. Over the years, PENGASSAN has been at the forefront of demanding that these refineries be rehabilitated and brought back into operation. This will not stop until the remaining three refineries are successfully rehabilitated and resume operations. Afterwards, we will mount a vanguard for the refineries to be privatized using the NLNG model that has worked efficiently over the year,” he said.

Osifo also hinted that oil workers are worried about the influx of foreign nationals, especially from India, into the industry.

He noted that the unchecked influx of junior workers is a drain on the economy while urging the government to take deliberate steps to strengthen regulatory mechanisms and enforce regulations to promote local content and ensure transparency and accountability.

The PENGASSAN boss noted that the neglect of the oil-bearing communities may fuel unrest in the region as most communities battle environmental degradation, lack of infrastructure and general development.

He added that harnessing Nigeria’s environmental protection regulations in the oil and gas industry to benefit host communities requires a multi-faceted approach focusing on regulatory enforcement, community engagement, and proactive environmental management and legal framework enhancement.

Osifo called for 100 per cent implementation of the provision of host communities in the Petroleum Industry Act, saying this will go a long way in bringing stability and development to the affected communities.

He submitted that while the country is in dire need of a functional tax system, there is an urgent need to provide more clarification and grant more concessions for low-salary earners.

According to him, the association said the N800,000 cap yearly for zero tax is too low. It argued that the threshold should be moved up to N1.5 million per annum to allow low-salary earners a breather.

He said: “The Association noted the ongoing tax reforms and wishes to demand that the tax relief exemptions that are given to those earning minimum wage and business should be expanded to accommodate more people and companies in that category. With the minimum wage going up to N70,000 minimum, many low earners will see their pay move up to about N120,000 and N150,000; therefore, these sets of workers need a tax rebate also. The N800,000 threshold is too small. The tax committee needs to reexamine this again.”

Osifo also hinted that PENGASSAN would attend the planned public hearing on the tax bills on proposals concerning the collection of payments by the Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA) to seek more clarifications.

He added: “Clarity must be provided regarding revenue collection processes from oil and gas companies as some provisions in the bill have the likelihood of negatively impacting our members in some of our major branches like the Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA). We shall be participating actively in the public hearing where our position will be well articulated. We hereby call on the National Assembly to conduct a proper public hearing session where different views will be collated to amend the provisions in the bill and not just to tick the box.”

He also declared his support for strike actions in states that have implemented the N70,000 national minimum wage, saying: “We are members of the Trade Union Congress (TUC). Therefore, we are a part of every decision TUC takes. For the fact that most of our members are not minimum wage earners, we are part of the struggle. We have had to go on strike for issues that did not affect us directly. This will not be an exemption. Our appeal is to all state governments to implement the new wage so as not to attract the wrath of the organised labour movement.”