Two of Nigeria’s most powerful oil workers’ unions — the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) — have strongly opposed the Federal Government’s reported plan to sell major stakes in joint venture oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL). At a joint press briefing in Abuja, PENGASSAN President Festus Osifo and NUPENG President Williams Akporeha warned that such divestments could destabilise the economy, weaken the oil sector, and threaten thousands of workers’ welfare.
The unions revealed that the government is considering reducing its stakes in joint venture oil assets by 30–35 per cent from its current holding of 55–60 per cent. They argued that while the move might generate quick cash, it would compromise Nigeria’s long-term economic security, bankrupt NNPCL, and impair its ability to meet obligations such as salaries, welfare packages, and budget contributions. “You cannot mortgage the future of Nigerians for temporary gains,” Osifo declared.
This controversy follows President Bola Tinubu’s recent directive for a reassessment of NNPCL’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA). The Economic Management Team led by Finance Minister Wale Edun has been tasked with optimising government savings, streamlining deductions from the Federation Account, and enhancing fiscal discipline amid global financial strain. However, the oil unions say amending the PIA or reducing government stakes could undo decades of reform efforts and send a “dangerous signal” to investors.
According to the unions, further divestment would cripple NNPCL’s capacity to sustain its operations and shrink Nigeria’s control over vital oil wells. They pointed to previous divestments by international oil majors such as ENI’s Agip subsidiary, ExxonMobil, and Shell, whose assets were acquired by local firms like Oando and Seplat. “Every oil well belongs to the Nigerian people collectively. If these stakes are sold, the federation loses, and the national oil company will be too weak to deliver,” Osifo argued.
Both PENGASSAN and NUPENG called on President Tinubu to halt the divestment plan and rein in officials pushing for changes. While the unions stopped short of announcing a strike, they warned they would “fight with everything” to block the sale. They cautioned that stripping NNPCL of its core national role would scare away investors, erode Nigeria’s economic foundation, and trigger industrial unrest.
source: punch