Oil unions warn of economic collapse, reject sale of JV stakes...

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), have kicked against the Federal Government’s reported plans to sell off significant stakes in joint venture assets managed by the Nigerian National Petroleum Company Limited (NNPCL).

CBI News reports that at a joint briefing in Abuja on Tuesday, PENGASSAN President, Festus Osifo, and NUPENG counterpart, Williams Akporeha, warned that the move would cripple the oil industry, bankrupt NNPCL, and endanger workers’ welfare.

The unions said the government was considering cutting its current 55–60 per cent holdings in some assets by as much as 30–35 per cent.

“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.

They argued that while the divestment might bring in quick cash, it would weaken NNPCL’s revenue base, shrink its contribution to the national budget, and jeopardise its capacity to fund salaries and welfare packages.

The controversy follows President Bola Tinubu’s directive for a review of NNPCL’s 30 per cent management fee and frontier exploration deductions under the Petroleum Industry Act (PIA).

But unions say fresh amendments to the PIA—barely three years after its passage—would send dangerous signals to investors.

“The PIA was passed after years of struggle. Investors are just beginning to adapt to it. Now, the government wants to amend it again? That is a dangerous signal,” Akporeha said.

The unions further accused the Ministry of Finance of attempting to strip the Ministry of Petroleum of its role in NNPCL’s joint ownership, describing it as a backdoor hijack of the company.

“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,” Osifo argued.

While stopping short of declaring a strike, the unions vowed to resist the policy with all available tools.

“Whoever mooted this idea, whether from the Ministry of Petroleum, Ministry of Finance, NNPCL, or even the Presidency itself, we reject it 100 per cent. It will make NNPCL bankrupt in a few years. We will not allow that to happen,” Osifo insisted.

Akporeha added: “Every serious oil-producing nation protects its national oil company. Here, we are doing the opposite, stripping ours of its strength.”

The unions demanded that President Tinubu personally stop the divestment agenda and call the Finance Minister, NNPCL Board Chairman, and Group CEO to order.

“If these proposals succeed, Nigeria will struggle to fund its budget. This is a recipe for crisis, and we will resist it,” Osifo warned.