The Trade Union Congress of Nigeria (TUC) has backed private sector participation in the country’s refinery industry but opposed any plan to sell the facilities completely to private investors.
TUC President, Festus Osifo, made the position known on Tuesday in Abuja during a news conference on economic and labour-related issues affecting Nigerians.
Osifo proposed that the Federal Government reduce its ownership stake in the refineries to 49 per cent, while credible private investors with the required technical expertise should control the remaining 51 per cent.
According to him, the arrangement would be similar to the ownership structure of Nigeria LNG Limited, where the government holds a 49 per cent stake and private investors own 51 per cent.
He argued that such a model would encourage commercially focused decisions and limit political interference in the running of the refineries.
Osifo stressed that investors with proven experience in refinery and petrochemical operations should be selected to ensure the facilities are efficiently managed and remain sustainable.
He said the TUC had maintained this position for about 25 years, describing private-sector equity participation as one of the best ways to revive Nigeria’s refineries.
The labour leader also warned the government against repeating the challenges experienced during the privatisation of the power sector, where some investors, according to him, lacked the technical and financial capacity to manage the assets they acquired.
“We don’t want such to happen to our refinery,” Osifo said.
He, however, praised the ongoing efforts of the Nigerian National Petroleum Company Limited (NNPCL) to attract experienced investors into the refinery sector and reduce the government’s stake.
Osifo said operational refineries would improve Nigeria’s energy security, reduce reliance on imported petroleum products and contribute to economic development.
On the ongoing aviation workers’ strike, the TUC president expressed support for the workers’ demands for unionisation rights and better welfare.
He alleged that airlines were withholding about N25 billion generated from the five per cent ticket charge meant for workers. He called on the airlines to remit the funds and resolve the issues responsible for the industrial dispute.
Osifo also urged the Federal Government to continue food importation until insecurity is sufficiently addressed and farmers can safely return to their farms.
He said the policy had contributed to lowering food prices and should only be discontinued when domestic agricultural production is strong enough to meet demand.
On the foreign exchange market, the TUC president called for further appreciation of the naira, proposing an exchange rate of about N1,000 to the US dollar.
He said a stronger naira would lower the cost of imported goods, ease inflation and improve economic stability for workers and other Nigerians.