The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) alongside the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have firmly opposed the federal government’s initiative to reduce its equity in Joint Venture (JV) oil and gas enterprises.
They cautioned that this strategy could jeopardize national income streams, weaken the operational capacity of the Nigerian National Petroleum Company Limited (NNPC Ltd), and potentially deepen the country’s economic challenges.
During a joint press conference held in Abuja, both labor unions also voiced strong resistance to the suggested revisions to the Petroleum Industry Act (PIA). They argued that these changes would remove the Ministry of Petroleum’s oversight of NNPC Ltd, transferring exclusive control to the Ministry of Finance.
Festus Osifo, President of PENGASSAN, revealed that the government intends to divest 30 to 35 percent of its current 55 to 60 percent stake in critical JV assets as a means to generate immediate revenue.
He warned that such a move could have far-reaching negative impacts on the oil sector and the broader Nigerian economy.
Osifo emphasized that selling off these assets would not only deprive future Nigerians of vital resources but also cripple NNPC Ltd’s capacity to meet payroll obligations, fund operational activities, and maintain its workforce.
He further cautioned that if this policy proceeds unchecked, it could push the company toward insolvency in the near future.
Additionally, Osifo expressed alarm over the proposed PIA amendments that seek to exclude the Ministry of Petroleum from NNPC Ltd’s ownership framework, leaving the Ministry of Finance Incorporated as the sole shareholder. He described this as a misguided move aimed at undermining Nigeria’s sole national oil company.
Osifo stated, “We have gathered today to alert the global community about developments in our sector that, if left unaddressed, could derail the industry and thrust Nigeria into a deeper economic turmoil.
“The government’s plan to reduce its stake by up to 35 percent is unacceptable. Reflecting on history, if these assets had been sold off decades ago, Nigeria’s current position would be far weaker. Our future cannot be mortgaged for short-term gains.
“Regardless of who proposed this-be it from the petroleum ministry, finance, NUPRC, NNPC, or the presidency-we categorically reject it.
The focus should be on boosting production, not liquidating our strategic assets.”
“Regarding the PIA, the attempt to remove the Ministry of Petroleum from NNPC Ltd’s ownership and hand full control to the Ministry of Finance is a grave error. We will oppose this vigorously and urge President Tinubu to intervene,” he added.
Williams Akporeha, President of NUPENG, echoed Osifo’s concerns, asserting that there is no valid reason to divest the nation’s oil assets at this juncture.
He also warned against rushed amendments to the PIA, enacted in 2021, noting that investors are still in the process of understanding the law’s implications. Frequent policy changes, he argued, would undermine investor confidence and deter future investments.
Akporeha remarked, “Selling our JV assets now is unwarranted. We supported the removal of fuel subsidies because it was draining public funds. Currently, government revenues are improving-so why sell off the few remaining assets? We reject this approach.
“The PIA has been in force for less than three years, and stakeholders are only beginning to grasp its provisions. Proposing amendments so soon sends a negative message and breeds uncertainty. Every oil-producing nation safeguards its national oil company to protect its interests. Why dismantle NNPC, our only national oil entity? This is not the right path forward.”
