On Tuesday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) alongside the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) nigeria-killing-field-ex-goc-ali-keffi-urges-emergency/” title=”Ex-GOC Ali-Keffi Urges Tinubu: "… Is a Killing Field – Declare a State of Emergency Now!”>firmly opposed the federal government’s rumored initiative to divest substantial shares in Joint Venture (JV) assets overseen by the Nigerian National Petroleum Company Limited (NNPC Ltd).
These influential labor unions cautioned that such a move could destabilize Nigeria’s economy, weaken the oil sector, and threaten the livelihoods of industry workers.
During a joint press conference held in Abuja, PENGASSAN President Comrade Festus Osifo and NUPENG President Williams Akporeha expressed concerns that selling off large portions of JV stakes would not only diminish national income but also compromise the prosperity of future generations.
The oil sector representatives criticized the government’s intention to reduce its current 55 to 60 percent ownership in JV assets down to approximately 30 to 35 percent as a short-term strategy to raise funds, labeling it reckless and detrimental.
They referenced previous exits by multinational oil giants such as TotalEnergies, Chevron, and BP, whose Nigerian operations were subsequently acquired by local companies, highlighting the risks of further divestment.
The unions warned that continued reduction of government equity would leave NNPC Ltd financially fragile, impairing its ability to fulfill essential responsibilities including employee remuneration, benefits, and contributions to the national budget.
Additionally, both unions voiced apprehension about proposed amendments to the Petroleum Industry Act (PIA) of 2021, legislation that took decades to finalize.
They accused the Ministry of Finance of attempting to exclude the Ministry of Petroleum from the joint ownership structure of NNPC Ltd, describing this as an irregular and covert effort to seize control of the company.
According to the unions, these legislative changes risk stripping NNPC Ltd of its fundamental national mandate, eroding investor trust, and potentially pushing the company toward insolvency.
They stated, “The government plans to significantly reduce its stakes in these JV assets, in some cases by as much as 30 to 35 percent, aiming to generate immediate cash flow for other expenditures.
“However, as representatives of PENGASSAN and NUPENG, we categorically reject this approach. Sacrificing our nation’s future for short-term gains will leave us vulnerable and impoverished in the years ahead.
“Allowing this course will inevitably lead to NNPC’s financial collapse within a few years, jeopardizing critical obligations such as staff salaries and welfare.
“Regardless of whether this proposal originated from the Ministry of Petroleum, Ministry of Finance, NNPC Ltd, or the Presidency, we stand united in our complete opposition,” the unions affirmed.
They urged President Bola Tinubu to take immediate action to halt the proposed sales and legislative changes.
Further updates to follow…
