The Petroleum and Natural Gas Senior Staff Association of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers have firmly opposed alleged plans by the federal government to divest significant stakes in Joint Venture oil assets managed by the Nigerian National Petroleum Company Limited.
In a joint press conference held in Abuja on Tuesday, PENGASSAN President, Comrade Festus Osifo, and his NUPENG counterpart, Williams Akporeha, warned that such a move could destabilise the country’s economy, erode the strength of the oil and gas sector, and jeopardise the welfare of workers across the industry.
They described the proposal to reduce government stakes—currently between 55 and 60 percent—by as much as 30 to 35 percent in exchange for quick cash as a dangerous and short-sighted decision. According to the unions, this approach would not only reduce national revenue but could also compromise the future of the next generation.
The labour leaders cited the divestments of international oil companies such as ENI, ExxonMobil, and Shell, whose Nigerian operations were sold to local firms. They argued that further sales would leave NNPC Ltd financially vulnerable and unable to fulfill key responsibilities, including the payment of salaries, staff benefits, and contributions to the national budget.
The unions also expressed concern over proposed amendments to the Petroleum Industry Act (PIA), enacted in 2021. They alleged that the Ministry of Finance was attempting to strip the Ministry of Petroleum of its joint ownership of NNPC Ltd—an action they described as a “backdoor” takeover that would compromise the integrity and national mandate of the company.
According to the union leaders, such amendments would diminish NNPC Ltd’s core role, shake investor confidence, and potentially push the national oil company toward insolvency.
“Government is wanting to reduce its stake in these assets, principally, they want to sell some huge percentages in these assets. In some places, sell up 35 percent, in some places sell up 30 percent, so that they will have some cash to spend in other areas.
“That is the excuse that they are giving. But as an association, as PENGASSAN and NUPENG, we say no, no, no to this. You cannot mortgage our future today and tomorrow we will be starving as a country.
“If we allow this to continue, it has a way of making NNPC become bankrupt in the next few years. There are obligations that must be met, the chief of these obligations is payment of staff salaries and welfare of our members.
“Whoever mooted this idea, whether from the Ministry of Petroleum, Ministry of Finance, NNPC Ltd, or the Presidency itself, we reject it 100 percent,” the unions said.
They urged President Bola Tinubu to take immediate action to halt the proposed divestment, calling it a threat to the long-term stability of the oil industry and the national economy.
