PENGASSAN Highlights Concerns Over Nigeria’s N49 Trillion Budget, Advocates Economic and Energy Reforms
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) raised critical concerns regarding Nigeria’s economic and energy sectors during its National Executive Council (NEC) meeting in Lagos.
Budget of N49 Trillion: Grossly Inadequate
Speaking to journalists, PENGASSAN President Comrade Festus Osifo described the 2025 budget of N49 trillion (approximately $30 billion) as insufficient for a nation with over 230 million people.
Osifo compared Nigeria’s budget to that of South Africa, which, despite having only 60 million citizens, operates with a budget exceeding $120 billion—four times larger than Nigeria’s.
He pointed out that the current budget cannot adequately address critical infrastructure needs, including federal roads, education, and healthcare. A 2021 study indicated that rehabilitating federal roads alone would cost $120 billion, highlighting the stark inadequacy of the $30 billion budget.
Osifo called for an expansion of Nigeria’s revenue base, emphasizing the untapped potential of the country’s vast mineral and material resources. “The government must harness these resources to create jobs and add value to the economy,” he urged.
Debt Servicing Crisis
PENGASSAN also criticized Nigeria’s high debt servicing costs, which consume over 90% of the country’s revenue. “No country can progress meaningfully under such a burden,” Osifo warned, urging fiscal reforms and better debt management strategies.
National Grid Failures
Osifo lamented Nigeria’s persistent power challenges, including the collapse of the national grid more than 12 times in 2024 alone. The country has failed to generate more than 4,000 megawatts of electricity since 1999, despite billions of dollars invested in the sector.
The PENGASSAN president called on the government to ensure that only qualified professionals are appointed to manage the Nigerian Electricity Regulatory Commission (NERC) and the Ministry of Power. He urged the President to prioritize protecting and upgrading Nigeria’s electricity infrastructure.
State-Owned Refineries
On the state of Nigeria’s refineries, Osifo acknowledged progress at the Warri refinery and ongoing rehabilitation at the Kaduna and Port Harcourt refineries. However, he stressed the need for all state-owned refineries to become fully operational.
He highlighted the economic benefits of functional refineries, including job creation, foreign exchange earnings, and enhanced energy security. “Efficient local refineries will also reduce the high cost of petroleum products,” he noted.
High Pump Prices and Forex Challenges
Osifo identified Nigeria’s unstable foreign exchange (FOREX) rates as the primary factor driving high petrol prices. He explained that crude oil allocated to local refineries is priced in naira but pegged to the international dollar benchmark due to the USD-based nature of the oil business.
Efficient local refineries and better FOREX management, Osifo argued, would help stabilize pump prices, potentially reducing the cost of petrol to below N600 per litre if the naira strengthens.
Tax Reforms and Public Accountability
On tax reform bills before the National Assembly, PENGASSAN called for meaningful public hearings to ensure that citizens’ input is factored into the legislation. Osifo criticized public hearings in Nigeria as often being mere formalities and urged lawmakers to prioritize transparency and inclusiveness.
Advocacy for Workers
Osifo assured journalists that PENGASSAN is committed to protecting Nigerian oil workers affected by divestment processes. He noted that workers have been fairly compensated and absorbed into new roles, reflecting the union’s efforts to safeguard its members’ welfare.
PENGASSAN reiterated its commitment to holding the government accountable and proffering solutions to Nigeria’s pressing economic and infrastructural challenges.
