The President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, has urged caution over sweeping allegations of sabotage in the oil and gas sector, stressing that such claims should be carefully examined and addressed through strong institutions rather than personal accusations.
Osifo made the remarks during an interview with Channels Television on Sunday, reacting to repeated allegations by Aliko Dangote, President of the Dangote Group, who has accused regulators and vested interests of sabotaging the operations of the Dangote Petroleum Refinery. Dangote recently called for an investigation into the former Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, over alleged personal expenditures.
Dangote had alleged that Ahmed spent about $5 million on the secondary school education of his four children in Switzerland, demanding a full investigation and public explanation.
Reacting to the claims, Osifo cautioned against broad use of the term “sabotage,” noting that it is a serious allegation that must be clearly broken down and substantiated.
“The word sabotage is very huge. It’s very big. So what would have been done properly was to deconstruct it, open it up,” he said, warning that vague accusations could damage confidence in the industry.
He stressed that Nigeria must prioritise building strong regulatory institutions rather than focusing on individuals. “For us, as a country, we must build institutions and not individuals. We must have regulators who are strong, solid, and willing to support businesses to grow, while ensuring operations remain within the ambit of the law,” Osifo said.
He highlighted key regulators such as the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), insisting they must be strengthened to effectively manage the sector.
While describing the Dangote Refinery as a major national achievement and a source of pride, Osifo emphasised the need for cooperation between the refinery’s management and government institutions. According to him, regulators have a responsibility to support the refinery’s growth, just as refinery operators must recognise and work with regulatory authorities.
On the controversy surrounding Farouk Ahmed, Osifo noted that regulatory actions go beyond individuals, pointing out that officials operate under ministerial oversight. He added that any concerns should be addressed within institutional frameworks rather than through public accusations.
Osifo also acknowledged competing interests within the sector, noting that while Dangote seeks an end to fuel imports, importers have their own economic arguments. He stressed that regulators must balance these interests to ensure national energy security, a task he said ultimately falls under the purview of the Minister of Petroleum Resources.
Meanwhile, Dangote has maintained that his refinery has suffered significant losses—estimated at $82 million—due to theft and sabotage, including the removal of critical equipment during operations. He described what he termed an “oil mafia” as a powerful network determined to frustrate local refining in favour of fuel imports.
Osifo concluded by calling for stakeholder engagement and institutional alignment, urging the Minister of Petroleum Resources to convene all parties to address challenges facing the sector.
“All stakeholders must sit down together, discuss challenges, and come up with concrete decisions that will benefit not just the industry, but the over 230 million Nigerians,” he said.
