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PENGASSAN Calls for Institutional Fix in Dangote, NMDPRA Dispute

The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, has advised against sweeping claims of sabotage in the oil and gas sector, saying such matters should be carefully broken down and addressed through strong regulatory systems.
Osifo spoke after the President of Dangote Group, Aliko Dangote, made repeated claims that criminal networks and regulatory failures were working against his refinery. Dangote had also called for an investigation into the former Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, over alleged personal spending on his children’s education abroad.
According to Osifo, broad accusations of sabotage can damage the industry if they are not clearly explained. He said different actions could be described as sabotage and warned that unclear claims may affect operations across the sector. He added that issues should be linked to specific actions and handled in a way that protects the industry as a whole.
He said Nigeria must focus on building strong institutions rather than focusing on individuals. He explained that regulators must be capable, firm, and supportive of businesses, while also ensuring that companies follow the law. Osifo mentioned agencies such as the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission, saying they must be strengthened to perform their duties properly.
While speaking on the Dangote Refinery, Osifo described it as a positive development for the country. He said its success depends on cooperation between the refinery’s management and government agencies. He noted that regulators have a duty to support the growth of the refinery, while the refinery must also respect regulatory authority.
On the allegations against Farouk Ahmed, Osifo said the matter should not be seen as the action of one person alone. He explained that the position reports to the Minister of Petroleum Resources and operates within instructions from the presidency.
He also spoke on the competing interests in the sector, noting that while Dangote wants fuel imports stopped, importers also have their own positions. He said regulators must balance these interests to protect energy supply in the country. According to him, the Minister of Petroleum Resources is in the best position to align all parties for the benefit of Nigerians.
Dangote had earlier claimed that his refinery had lost about 82 million dollars to theft and sabotage. He said equipment was removed from the facility and pipelines damaged, forcing the company to increase security around the refinery. He also accused local marketers and foreign traders of trying to frustrate local refining so they could continue to profit from fuel imports.
Osifo concluded by calling on all stakeholders in the oil and gas sector to come together, discuss their concerns, and agree on solutions that will serve the interests of Nigerians and protect the future of the industry.

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