Organised labour in the oil and gas sector has rejected the Federal Government’s plan to divest significant stakes in joint venture (JV) assets currently managed by the Nigerian National Petroleum Company Limited (NNPCL).
At a joint press briefing in Abuja, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) described the proposal as dangerous to the economy, threatening the stability of the industry and the welfare of workers.
PENGASSAN President, Festus Osifo, and NUPENG President, Williams Akporeha, said the move to reduce government shares in JV assets by as much as 30 to 35 per cent would amount to mortgaging Nigeria’s future for temporary gains. “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.
The unions argued that while the divestment plan may provide immediate revenue, it could bankrupt NNPCL in the long term, shrink its budgetary contributions, and undermine its ability to pay salaries and welfare benefits.
Their resistance follows President Bola Tinubu’s recent directive for a review of NNPCL’s deductions under the Petroleum Industry Act (PIA). The President had instructed the Economic Management Team, headed by Finance Minister Wale Edun, to reassess the 30 per cent management fee and 30 per cent frontier exploration deduction.
However, the oil unions said any attempt to amend the PIA, which was passed barely three years ago, would discourage investment and deepen uncertainty in the sector. “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.
They also alleged that the Ministry of Finance was attempting to edge out the Ministry of Petroleum from joint ownership of NNPCL, a move they described as a backdoor takeover of the national oil company. “The NNPCL manages JV assets on behalf of the Federation. 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 warned.
The unions demanded the intervention of President Tinubu to stop the divestment push and rein in officials driving the process. “If these proposals succeed, Nigeria will struggle to generate the revenue required to fund its budget. This is a recipe for crisis, and we will resist it,” Osifo maintained.
Though they stopped short of declaring a strike, both unions vowed to oppose the move with all available means. “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 said.
