PENGASSAN Advocates for AI Integration, Local Refinery Ownership, and Exchange Rate Stabilization
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for the integration of artificial intelligence (AI) and local ownership of refineries as key strategies to enhance energy security and address crude oil theft in Nigeria. These recommendations were made during the 3rd edition of the Energy and Labour Summit (PEALS 2024), held in Lagos.
Speaking at a press conference, PENGASSAN President Comrade Engr. Festus Osifo emphasized the critical role of technology in combating crude oil theft and improving the country’s energy supply chain. “AI-powered surveillance, predictive analytics, and automated threat detection systems are essential to safeguarding Nigeria’s oil and gas infrastructure,” he said.
The summit, themed “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment and Crude Oil Theft,” gathered industry experts to address the pressing challenges facing the sector. Among the key resolutions was the need for private sector-driven solutions to restore and manage Nigeria’s four refineries. Osifo urged the government to divest majority ownership of these refineries, retaining only 49%, while private investors take the lead, similar to the Nigerian Liquefied Natural Gas (NLNG) model.
Osifo also advocated for increasing Nigeria’s stake in the Dangote Refinery from 7% to 45%, a move he believes will significantly boost domestic petroleum production and reduce reliance on fuel imports.
Diversification of Nigeria’s energy mix was another critical point of discussion, with Osifo highlighting the need for investment in renewable energy sources like solar, wind, and hydrogen to secure the country’s energy future.
PENGASSAN further called for the rehabilitation of inland petroleum depots and the expansion of pipelines for the efficient distribution of refined petroleum products. Digital interventions to curtail crude oil theft and an overhaul of the security architecture were also recommended.
The summit’s communiqué urged the Federal Government to stabilize the exchange rate, arguing that the uncontrolled floating of the naira has destabilized the economy. Additionally, PENGASSAN called for the strict prosecution of those involved in crude oil theft and the implementation of the Petroleum Industry Act (PIA) provisions, including the 3% contribution to the Host Community Fund.
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Osifo expressed optimism that, with the right policies and collaboration, Nigeria’s oil and gas industry can overcome its current challenges and secure a sustainable energy future.
