The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have strongly opposed the Federal Government’s proposed plan to divest significant stakes in Joint Venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL).
At a joint press conference in Abuja on Tuesday, the two powerful oil workers’ unions cautioned that the planned sale could destabilize the economy, mortgage the future of coming generations, and plunge NNPCL into bankruptcy.
They also alleged that there were moves within government circles to tamper with the Petroleum Industry Act (PIA), describing such a move as dangerous, ill-advised, and a setback for the country’s oil and gas sector.
Sale Seen As Threat To Nigeria’s Economic Stability
PENGASSAN President, Comrade Festus Osifo, and NUPENG President, Comrade Williams Akporeha, said the Federal Government intends to reduce its controlling stake in JV assets, currently between 55% and 60%, by as much as 30% to 35%.
According to them, the rationale behind the proposed divestment is to raise immediate revenue for government spending, a move they described as “short-sighted” and “reckless.”
“Government wants to reduce its stake in these assets, some by up to 35 percent, so that they will have quick cash to spend in other areas.
“But as NUPENG and PENGASSAN, we say no, no, no to this. You cannot mortgage the future of this country for temporary spending,” Osifo said.
The unions warned that such divestments would erode the capacity of NNPCL to meet critical obligations, including the payment of salaries, workers’ welfare, and contributions to the national budget.
They added that any weakening of the national oil company would have dire implications for Nigeria’s economic survival.
Lessons From Past Oil Majors’ Exit
Both unions pointed to previous divestments by multinational oil giants such as ENI, ExxonMobil, and Shell, whose Nigerian assets were acquired by local firms like Oando Energy and Seplat.
They warned that further government divestment could cripple NNPCL’s ability to act as a strong custodian of the federation’s oil resources.
They stressed that all crude oil and oil wells belong not just to the Federal Government but to the federation at large, and that NNPCL holds and manages them in trust for the Nigerian people. Weakening the company, they argued, would endanger national interest.
Resistance To Alleged PIA Amendment
The unions also raised alarm over an alleged plot to amend the Petroleum Industry Act (PIA) of 2021.
They accused the Ministry of Finance of spearheading an effort to strip the Ministry of Petroleum of joint ownership of NNPCL, a move they described as “an aberration and a backdoor attempt to hijack the company.”
According to them, such amendments would undermine investor confidence, destabilize the industry, and eventually bankrupt NNPCL.
“We will resist this with everything in us because it is not in the interest of Nigerians. The regulators should play their oversight role, not seek to take over the management of NNPCL. Anything else is driven by ulterior motives,” the unions said.
They further argued that tampering with the PIA so soon after its passage sends a negative signal to international investors, who may interpret it as evidence that Nigeria does not respect its own laws.
Call On Tinubu To Intervene
The oil workers called on President Bola Ahmed Tinubu to urgently step in, warning that the moves by government officials were dangerous for the nation’s economic stability and global reputation.
They urged the President to rein in the Ministry of Finance, the NNPCL board, and other actors allegedly pushing for both the sale of JV stakes and the amendment of the PIA.
“If all these actions had been taken before Tinubu assumed office, government revenues would have collapsed, and budgets would have been impossible to fund. We are sending a strong warning that this must stop now. A stitch in time saves nine,” they warned.
Both NUPENG and PENGASSAN concluded that they would resist any sale or legislative manipulation that undermines Nigeria’s oil sovereignty and the welfare of workers, stressing that the long-term future of the country must not be sacrificed for short-term financial gains.
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