NUPENG, PENGASSAN reject sale of National Oil stakes

By Joan Nwagwu

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 plan to divest its stakes in Joint Venture (JV) oil assets.

Speaking at a joint press conference in Abuja on Tuesday, PENGASSAN President, Mr Festus Osifo, warned that the proposed sales, coupled with the suggested amendments to the Petroleum Industry Act (PIA), could destabilise the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and threaten the nation’s economic stability.

“The oil assets belong to the federation, not merely the Federal Government. Selling them for quick cash amounts to mortgaging Nigeria’s future,” Osifo said.

“Government currently holds between 55 and 60 per cent stakes in JV assets managed by NNPC Ltd. on behalf of all Nigerians. Any attempt to divest these holdings will undermine foreign exchange earnings, weaken the Naira, and exacerbate budget deficits,” he added.

Osifo added that such a move could endanger the welfare of oil workers, noting that NUPENG and PENGASSAN collectively constitute the largest workforce within NNPC Ltd.

He described the plan as a threat to the country’s long-term economic security, stressing, “If unchecked, it will weaken NNPC, bankrupt the nation, and jeopardise future generations.”

On the proposed PIA amendments, Osifo criticised the government’s plan to remove the Ministry of Petroleum from NNPC Ltd.’s ownership structure, transferring full control to the Ministry of Finance.

“This is an aberration. Around the world, national oil companies operate under petroleum ministries. We will resist any attempt to alter this governance structure,” he said.

He called on the government to focus on expanding crude oil production, which he said could rise from the current 1.7 million barrels per day to over 3 million barrels with the right investment climate.

“The priority should be attracting investors and improving production, not seeking short-term gains that jeopardise the future,” Osifo urged.

NUPENG President, Mr Williams Akporeha, echoed these concerns, urging the government to reconsider its approach to economic reforms.

“They argued that subsidies were draining funds, and we supported subsidy removal in the hope of better infrastructure and security. With increased revenues now flowing into the federation account, why consider selling our remaining assets?” he asked.

Akporeha also described the proposed PIA amendments as premature, warning that they could erode investor confidence.

“Investors need stability, not sudden changes. The amendments being considered appear targeted at weakening NNPC Ltd., Nigeria’s sole national oil company. Every major oil-producing nation maintains a strong national oil company to safeguard national interests. Nigeria should not undermine its own,” he said.

Both unions called on President Bola Tinubu to intervene and ensure that the government prioritises long-term national interests over immediate financial gains.

“The government must leave our assets untouched and focus on boosting crude production. Nigeria cannot afford to gamble with its primary source of revenue,” Osifo concluded.