June 4, 2026
BUSINESS

Energy Expert Accuses PENGASSAN of Stalling Nigeria’s Petroleum Sector Reforms

An energy expert, Nick Agule, has criticised the Petroleum and Natural Gas Senior Staff Association of Nigeria, accusing the union of obstructing reforms and contributing to inefficiency in Nigeria’s petroleum sector.

In a statement issued on February 21, 2026, Agule alleged that the union has, over the years, resisted critical reforms while prioritising its own interests above national development. He argued that Nigeria’s oil industry has suffered prolonged stagnation partly due to what he described as PENGASSAN’s opposition to change.

Citing past events, the expert referenced the 2007 refinery privatisation effort under former President Olusegun Obasanjo, which was opposed by the union. According to him, despite assurances at the time, the country’s refineries have remained largely non-functional, with billions of dollars reportedly spent on rehabilitation without significant results.

Agule also questioned recent claims by the union regarding improved output at the Port Harcourt refinery, arguing that operations running at a financial loss cannot be considered productive. He maintained that such outcomes reflect deeper structural inefficiencies within the system.

The expert further alleged that even reform-driven officials within the Nigerian National Petroleum Company Limited have faced pressure from the union, particularly over discussions surrounding the possible privatisation of state-owned refineries.

He accused PENGASSAN of focusing on preserving check-off dues and existing workforce structures, rather than supporting restructuring efforts aimed at improving efficiency. According to him, this has resulted in continued financial strain on the country’s oil sector.

Agule called on President Bola Ahmed Tinubu to take decisive action, insisting that Nigeria cannot allow vested interests to dictate the future of its petroleum industry. He also raised concerns about revenue allocation within production sharing contracts and remittances to the federation account.

The statement concluded with a call for greater transparency, efficiency, and private-sector participation in the oil and gas sector, warning that continued resistance to reform could further hinder national progress.

The union has yet to respond to the claims at the time of filing this report.

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