FG speaks on increasing NNPC’s stake in Dangote refinery from 7% to 45 percent

• PENGASSAN urged the Federal Government to increase its shares in the Dangote Petroleum Refinery
• It explained that the development will ensure further energy assurance and security for the citizens
• According to the group's president, the high stake in the refinery would enhance energy security

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

To provide assurance and energy security, the Federal Government has been requested by the Petroleum and Natural Gas Senior Staff Association of Nigeria to expand its stake in the Dangote Petroleum Refinery from the existing 7% to at least 45%.

President of PENGASSAN clarified that the substantial ownership of the refinery will improve energy security. Photo Credit: Dangote Refinery
Source: UGC

It was stated that doing this will give the public even more energy security and assurance.

Festus Osifo, President of PENGASSAN, made the request on Tuesday in Lagos while delivering the organization's communiqué and suggestions from the most recent Energy and Labor Summit, according to a Punch report.

He clarified that the substantial ownership of the refinery will improve energy security, pointing out that energy security is essential to any country's existence—Nigeria is no different—and that as a result, the people demand that energy be affordable, accessible, and readily available.

Osifo further said that in order to preserve the petroleum product storage facilities that are now in place in the nation's six geopolitical zones, the government should collaborate with members of the private sector.

“When operational, petroleum products will be stored there and only made available when there is a shortage in supply. This will help in eliminating the bad roads and severe erosion-imposed perennial shortages that often lead to queues at petrol stations across the country,” he said.

In order to lessen the burden that trucks transporting these goods place on the nation's roadways, Osifo emphasized the development of pipelines that could be used to transport refined petroleum products throughout the whole nation.

He said that energy needs to be affordable in order to be secure, and that the government needs to do everything within its power to stabilize the exchange rate since the ongoing depreciation of the Naira will significantly impair the affordability of energy in Nigeria.

He encouraged the federal government to step up efforts to get the nation's four refineries operating in order to ensure local manufacturing of petroleum products.

He emphasized that, once the four refineries are operating, the government should sell off the majority of its shares and hold no more than 49% of the total, with key investors coming in to take the remaining 51%.

Group speaks on operation of Port Harcourt refinery

Legit.ng reported that the President of Nigeria Employers Consultative Association (NECA), Dr. Ifeanyi Okoye, has given his two cents on subsidy removal in Nigeria.

He made this known in an interview with journalists on the country’s current business environment and the need to achieve the complete removal of petrol subsidies, This Day reported.

He said the issue of subsidy has been creating a lot of corruption in the petroleum business in Nigeria. He, however, advocated for the total removal of subsidies to allow individuals to come and play in the field, just the way Dangote has done.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng