The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN,has insisted that it will not support a deregulation policy that is hinged on importation,saying it would add value to the country
President of the union,Comrade Festus Osifo, who disclosed this at the maiden edition of PENGASSAN Security Awareness Campaign in Abuja,said PENGASSAN has never opposed deregulation as a policy.
He said,” That is why our position to support the rehabilitation of the refineries is justified. Nigeria will be ripe for a full deregulation when the three refineries in the country are fully rehabilitated and are functioning under the private sector that is efficient.With the refineries coming on stream in the next few months and with the Dangote refinery coming on board as well, Nigeria will soon be self-sufficient in refined petroleum products.”
He expressed the union’s aversion to outright sales of the nation’s refineries.
According to him,PENGASSAN has never advocated for the refineries to be sold,but has always campaigned for a Public-Private partnership in such a way that government will not be involved in the day-to-day running of the refineries.
He added:“Why is the Federal Government not exploring the possibility of adopting the LNG model where government holds minority 49 per cent while the private sector will take 51 per cent?That model has worked very well. PENGASSAN welcomes the rehabilitation of the refineries.
” Our advocacy once the rehabilitation work is complete will be to call on government to divest from the refineries and allow private sector to run all of them. If we were to sell the refineries the way they are, they will be sold as scraps. If government fix the refineries and then divest, the money that government will get will be reasonable.”
He said allocation of three percent to host communities in the just passed Petroleum Industry Bill, PIB, by the two chambers of the National Assembly, is a good starting point.
He said:“For us in PENGASSAN, three per cent of operating expenditure is a good place to start. Let the bill be signed to end the uncertainty that shrouded the petroleum industry.The host communities can then seek amendment. In my rough estimation gotten from the expenditure of the oil companies in the last one year, three per cent translates to about $45 million. The most important thing is how the fund will be administered?
” How will the fund be applied in such a way that will serve the purpose it is meant for? Corruption must not be allowed to find its way into the administration of the fund so that the host communities will benefit maximally.”
