Two major oil workers’ unions have kicked against the Federal Government’s reported move to divest significant stakes in joint venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL).
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) warned on Tuesday that the plan could destabilise the economy, weaken the national oil company, and put workers’ welfare at risk.
Speaking at a joint briefing in Abuja, PENGASSAN President Festus Osifo and NUPENG leader Williams Akporeha rejected proposals that government stakes in JV assets be reduced by as much as 30 to 35 per cent. The Federal Government currently holds between 55 and 60 per cent in such ventures through NNPCL.
According to the unions, while the planned sale may generate immediate revenue, it would endanger the country’s long-term economic security. They argued that reducing government holdings could cripple NNPCL’s ability to meet obligations such as salaries and budget remittances.
“You cannot mortgage the future of Nigerians for temporary gains,” Osifo declared.
The development comes on the heels of President Bola Tinubu’s directive last month for a review of NNPCL’s 30 per cent management fee and its 30 per cent frontier exploration allocation under the Petroleum Industry Act (PIA). Tinubu had tasked the Economic Management Team, headed by Finance Minister Wale Edun, with boosting government savings and enforcing stricter fiscal discipline.
But the unions warned that tampering with the PIA barely three years after its passage could unsettle investors and reverse progress made in reforming the sector.
Akporeha described the planned amendment as a “dangerous signal” to investors.
“Every serious oil-producing country protects its national oil company. Here, we are stripping ours of its strength,” he said.
They also accused the Ministry of Finance of attempting to sideline the Ministry of Petroleum in NNPCL’s ownership structure, alleging that the move amounted to a “backdoor takeover” of the company.
The unions demanded President Tinubu personally halt the plan and caution officials pushing for it. While they stopped short of declaring a strike, they warned they would resist any attempt to sell off critical national oil assets.
“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,” Osifo insisted.
With the government under pressure to shore up revenue, the unions’ opposition sets the stage for another face-off between organised labour and the Tinubu administration.
