PENGASSAN, NUPENG reject govt’s plan to sell assets
Two of Nigeria’s influential oil sector unions have strongly opposed the Federal Government’s reported plans to divest significant stakes in joint venture assets managed by the Nigerian National Petroleum Company Limited.
The Petroleum and Natural Gas Senior Staff Association of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers on Tuesday warned that such moves could destabilise the economy, weaken the oil industry, and jeopardise the welfare of workers.
At a joint press briefing in Abuja, PENGASSAN President, Festus Osifo, and his NUPENG counterpart, Williams Akporeha, rejected the proposal to cut government stakes in JV assets by as much as 30–35 per cent. Currently, the Federal Government holds between 55 and 60 per cent of such assets through NNPCL.
According to the unions, the planned sale would generate quick cash but at the expense of Nigeria’s long-term economic security. They cautioned that reducing government holdings in critical oil assets could bankrupt NNPC, impair its ability to meet obligations such as salaries and welfare packages, and shrink its contributions to the national budget.
The government wants to reduce its stake in these assets. In some cases, they are talking of selling up to 35 per cent. But we say no.
You cannot mortgage the future of Nigerians for temporary gains,” Osifo declared.
The controversy follows President Bola Tinubu’s directive last month for a reassessment of the NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act.
Tinubu, in charging the Economic Management Team led by Finance Minister Wale Edun, stressed the need to optimise government savings, streamline deductions from the Federation Account, and enhance fiscal discipline in a time of global financial strain.
But oil unions said the administration’s latest policy moves, including talk of amending the PIA, could create more uncertainty in a sector that only recently secured a comprehensive reform law after decades of delays.
Osifo warned that further divestment would cripple NNPC’s ability to sustain its operations. He recalled previous divestments by international oil companies, including ENI’s Agip subsidiary, ExxonMobil, and Shell, whose Nigerian assets were acquired by domestic firms such as Oando and Seplat.
“The NNPCL manages JV assets on behalf of the Federation. Every oil well belongs to the Nigerian people collectively, not just the Federal Government. If these stakes are sold, the federation loses, and the national oil company will be too weak to deliver,” he argued.
