The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has identified incompetent leadership within the Ministry of Power and its regulatory agencies as a key factor behind Nigeria’s persistent power sector challenges, including frequent grid collapses.
Speaking at the National Executive Council (NEC) meeting held at the Oriental Hotel, Victoria Island, Lagos, PENGASSAN President, Comrade Festus Osifo, called for the appointment of capable professionals to lead the sector, emphasizing the importance of technical expertise in tackling Nigeria’s energy crisis.
In 2024 alone, the country experienced 12 grid collapses, recurrent tripping of transmission lines, and inadequate power generation, which remained between 3,000 and 4,000 MW. Osifo criticized the inefficiencies despite billions of dollars invested in the sector since 1999, attributing these failures to poor leadership and inadequate infrastructure protection.
“The continuous grid collapses and insufficient electricity generation highlight the urgent need for better leadership and infrastructure management. Nigeria is blessed with intellectuals, and we must harness their expertise to steer this critical sector forward,” he said.
Osifo commended the federal government’s efforts to decentralize the power sector under President Bola Tinubu’s administration but urged further action to ensure sustainable progress.
Osifo also addressed the high cost of petroleum products, linking it directly to the naira’s exchange rate. He explained that if the naira appreciates to below N1,000 per dollar, petrol prices could drop to less than N600 per liter.
“The pump prices of petroleum products are heavily influenced by the exchange rate. While crude oil for local refineries is priced in naira, its value is benchmarked against the international dollar rate,” he explained.
He also pointed to the decline in crude oil prices from $83 to $70 per barrel in late 2024 as a factor in the temporary reduction of petrol prices during the festive season. However, he warned of a potential marginal increase in prices unless the naira strengthens or local refineries operate efficiently.
The PENGASSAN President confirmed partial operations at the old Port Harcourt and Warri refineries and ongoing work at the Kaduna and new Port Harcourt refineries. He emphasized the potential of fully operational refineries to create jobs, reduce logistics costs, and earn foreign exchange.
“Functional refineries will not only create jobs but also eliminate the logistics costs of importing refined products. Without local refining, petrol prices could rise to as much as N1,300 per liter,” Osifo warned.
He highlighted the over 2,000 jobs created during the operational phase of the Port Harcourt Refinery and called for expedited efforts to achieve full refinery capacity.
Osifo stressed the need for Nigeria to diversify its revenue base by harnessing its abundant mineral resources. He called for value creation in the extractive sector to boost job creation and economic growth.
“The erosion of the naira’s value since June 2024 has significantly impacted the cost of goods and services in Nigeria. Expanding our revenue base and leveraging mineral resources can provide the much-needed buffer for the economy,” he noted.
Osifo urged Nigerians to pray for economic stability, warning against further devaluation of the naira to levels experienced in Venezuela and Zimbabwe. He called on the government to adopt measures to stabilize the FX market and promote sustainable economic growth.
PENGASSAN’s message underscores the urgent need for systemic reforms in Nigeria’s energy and economic sectors to address lingering challenges and ensure sustainable development.