The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have rejected the federal government’s plans to reduce its stakes in Joint Venture (JV) oil and gas assets.
They warned that the move could endanger national revenue, weaken the Nigerian National Petroleum Company Limited (NNPC Ltd ), and plunge the economy into a deeper crisis.
At a joint briefing in Abuja yesterday, both unions also opposed proposed amendments to the Petroleum Industry Act (PIA), which they said would strip the Ministry of Petroleum of its role in managing NNPC Ltd and hand sole control to the Ministry of Finance.
PENGASSAN President Festus Osifo told journalists that the government was planning to sell 30 to 35 per cent of its holdings in key JVs, which currently stand between 55 and 60 per cent, to raise quick funds.
He argued that such a decision would have devastating consequences for the oil industry and the wider economy.
According to him, the planned sale would not only deprive future generations of critical resources but also undermine NNPC Ltd’s ability to pay salaries, invest in operations and sustain its workforce.
He added that, if unchecked, the policy could lead to bankruptcy in the coming years.
Osifo also raised concerns about efforts to amend the PIA by removing the Ministry of Petroleum from the ownership structure of NNPC Ltd, leaving the Ministry of Finance Incorporated as the sole shareholder and described the plan as an aberration designed to weaken Nigeria’s only national oil company.
Osifo said, “We are here today to cry to the world of some happenings in our industry that, if not checked, have the capacity to derail this industry and plunge Nigeria into a bigger economic crisis.
“ The government wants to reduce its stake in these assets, selling as much as 30 to 35 per cent. We say no. If these assets were sold 30 years ago, where would Nigeria be today? You cannot mortgage our future.
“Whoever muted this idea, whether from petroleum, finance, NUPRC, NNPC, or the presidency, we reject it 100 per cent.
The government should focus on increasing production, not selling off assets.”
“On the PIA, they want to yank off the Ministry of Petroleum from the ownership of NNPC Ltd and hand it solely to the Ministry of Finance. This is an aberration. It is wrong, and we will resist it. President Tinubu should call them to order”, he added.
NUPENG President, Williams Akporeha, backed Osifo’s position, saying there was no justification for selling the country’s oil assets.
Akporeha also cautioned against hasty amendments to the PIA, which was passed in 2021. He said investors were still studying its provisions and that frequent policy shifts would create doubt and discourage investment.
Akporeha said, “The sale of our JV assets at this point is unnecessary. The government told us the subsidy was draining funds, and we supported its removal. Today, money is flowing into government coffers. What are they doing with it? Why then sell the little assets that we have left? We say no.
“PIA came into effect barely three years ago. Investors are only just beginning to understand it. How do you start talking about amendments so soon? This sends the wrong signal and creates doubt. Every oil-producing country has a national oil company to protect its investments. Why strip down NNPC, the only one we have? This is not the best way to go.”
