Two of Nigeria’s most influential oil unions—the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, and the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN have strongly rejected the Federal Government’s plan to sell its stakes in Joint Venture oil assets.
The unions argue that the move would have devastating consequences for Nigeria’s economy, energy security, and workforce.
At a joint press conference in Abuja on Tuesday, Festus Osifo, President of PENGASSAN, said the proposed asset sale amounted to “mortgaging Nigeria’s future.”
He stated that the government currently controls between 55 and 60 percent stakes in the JV oil assets through the Nigerian National Petroleum Company Limited.
Selling off these stakes, he warned, would not only weaken NNPC but also strip the nation of its most reliable source of foreign exchange earnings.
“Quick cash solutions will plunge the economy into deeper budget deficits, weaken the Naira, and endanger generations yet unborn,” Osifo declared.
He further argued that the policy would jeopardise the welfare of thousands of oil workers, given that NUPENG and PENGASSAN represent the largest workforce within NNPC Ltd.
The unions also criticised proposed amendments to the Petroleum Industry Act, particularly the plan to transfer NNPC’s ownership structure away from the Ministry of Petroleum and place it under the Ministry of Finance.
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Osifo described the move as an “aberration,” stressing that in most oil-producing countries, national oil companies operate under petroleum ministries to safeguard strategic interests.
Instead of selling assets or tinkering prematurely with the PIA, the unions urged the government to prioritise policies that could raise Nigeria’s oil production from the current 1.7 million barrels per day to over 3 million barrels.
They argued that attracting investors, boosting production, and improving infrastructure would provide long-term solutions to Nigeria’s revenue challenges.
On his part, Williams Akporeha, President of NUPENG, criticised the government for pursuing contradictory policies.
He recalled that the removal of fuel subsidy was justified as a way to free up funds for infrastructure and security.
Yet, despite increased revenues into the federation account since subsidy removal, Akporeha lamented that little progress had been made on these fronts.
“Now, with more revenue, government still wants to sell off our few remaining assets. This is not in the interest of Nigerians or the oil and gas industry,” Akporeha said.
He added that amending the PIA barely two years after its enactment would send a negative signal to investors, eroding confidence in Nigeria’s oil sector.
“Every oil-producing nation strengthens its national oil company. Why should Nigeria deliberately weaken NNPC Ltd.?” he queried.
The unions called on President Bola Tinubu to personally intervene, warning that the proposed asset sales and PIA changes would destabilise the petroleum sector and compromise Nigeria’s economic sovereignty.
NAN
