The Nigeria Union of Petroleum and Natural Gas Workers and the Petroleum and Natural Gas Senior Staff Association of Nigeria have strongly opposed the Federal Government’s plan to divest its stakes in Joint Venture oil assets.
In a joint news conference held on Tuesday in Abuja, the two unions also criticized the proposed amendments to the Petroleum Industry Act, warning that both moves could destabilize the Nigerian National Petroleum Company Ltd. and threaten the nation’s economy.
PENGASSAN President, Mr. Festus Osifo, described the planned sale of government stakes in JV assets as “mortgaging Nigeria’s future” and cautioned that it could cripple the country’s oil industry.
“The oil assets belong to the federation, not just the Federal Government, but to all Nigerians and any move to sell them amounts to mortgaging Nigeria’s future,” Osifo said. “Government currently holds between 55 and 60 per cent stakes in JV assets managed in NNPC Ltd. on behalf of the federation. Selling these assets for quick cash will undermine our foreign exchange earnings, weaken the Naira and plunge the nation into budget deficits.”
He added that the welfare of oil workers could be at risk, emphasizing that NUPENG and PENGASSAN make up the largest workforce in NNPC Ltd.
“If unchecked, it will weaken NNPC, bankrupt the country and endanger generations yet unborn and we say no, no, no to this plan,” Osifo stressed.
On the proposed amendments to the PIA, Osifo criticized the plan to remove the Ministry of Petroleum from NNPC Ltd.’s ownership structure, transferring control solely to the Ministry of Finance.
“This is an aberration. Everywhere in the world, national oil companies operate under petroleum ministries. We will resist any attempt to alter this structure,” he said, urging the government to focus on boosting crude oil production, which could rise from 1.7 million barrels per day to over 3 million barrels with the right investment climate.
“All government should be focused on today is how to attract investors and improve production, not quick wins that endanger tomorrow,” he added. He appealed to President Bola Tinubu to intervene and ensure that ministries and agencies act in the country’s best interest.
“The government must leave our assets alone and focus on boosting crude production, not quick cash that endangers Nigeria’s future,” Osifo reiterated.
NUPENG President, Mr. Williams Akporeha, also criticized the government’s approach, urging it to reconsider selling assets as part of its economic reforms.
“They told us subsidy was draining funds. We supported its removal in the hope of better infrastructure and security. Now, with more revenue, why sell our remaining assets?” he asked.
Akporeha noted that the subsidy removal had already increased revenue to the federation account, yet little progress had been made in addressing infrastructure and security issues.
“Now the little assets that the country still has, they also want to sell them. This is not in the interest of Nigerians, nor the oil and gas industry,” he said.
Regarding the proposed PIA amendments, he called them premature and potentially harmful to investor confidence in Nigeria’s oil sector.
“It is too early to amend the PIA. Investors need stability, not sudden changes. Government must allow the law to work before making adjustments,” he said.
He warned that the amendments would weaken NNPC Ltd., Nigeria’s sole national oil company.
“Every oil-producing country today has a national oil company that plays a huge role in protecting national interests. Why should Nigeria strip its own NNPC of that role?” Akporeha asked.
