TUC backs private sector equity in refineries, rejects outright sale

The Trade Union Congress of Nigeria (TUC) says it supports private sector equity participation in refineries, but not their outright sale.
The TUC President, Festus Osifo, said this at a news conference in Abuja on Tuesday, while speaking on economic and labour issues affecting Nigerians.
Mr Osifo said the government should reduce its equity to 49 per cent and allow credible private investors with technical expertise to hold the remaining 51 per cent.
“We have advocated that government should not sell the refinery outright. What we have advocated is for government to reduce its equity,” Osifo said.
He said the proposed structure should mirror the ownership model of Nigeria LNG Limited, where government holds 49 per cent and private investors control 51 per cent.
According to him, the arrangement will promote commercially driven decisions and reduce political interference in the management of the refineries.
“Decision-making should not be reached emotionally or politically, but when you look at the economics and commercial considerations,” he said.
Mr Osifo said investors with proven expertise in refinery and petrochemical operations should be prioritised to ensure efficient management and sustainable operations.
“We have said this for 25 years that this is the most veritable way to get those refineries functioning,” he said.
The TUC president cautioned against repeating the experience of the power sector, where, according to him, some investors lacked the technical and financial capacity to manage acquired assets.
“We don’t want such to happen to our refinery,” Mr Osifo said.
He commended ongoing efforts by the Nigerian National Petroleum Company Limited (NNPCL) to attract experienced investors into the refinery sector.
“We endorse what is currently happening in NNPC Ltd. to ensure that those refineries are functioning and government holdings are reduced,” he said.
Mr Osifo said functioning refineries are essential to strengthening Nigeria’s energy security, reducing dependence on imported petroleum products and supporting economic growth.
He also expressed TUC’s support for the ongoing strike by aviation workers, saying the union backed their demand for unionisation rights and improved welfare.
Mr Osifo said airlines were withholding about N25 billion accruing from a five per cent ticket charge meant for workers.
He urged the airlines to remit the funds and address the underlying issues to ensure lasting resolution of the industrial dispute.
He also urged the federal government to sustain food importation until insecurity was addressed and farmers could safely return to their farms.
“We support food importation for now because it has helped reduce prices. It should only stop when farmers can return to their farms and supply is restored,” he said.
He also called for further appreciation of the naira, saying the exchange rate should be reduced to about N1,000 to one dollar.
Mr Osifo said a stronger naira would reduce the cost of imported goods, ease inflationary pressures and enable economic stability to benefit workers and ordinary Nigerians.
(NAN)
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