Samuel Omang
Two of Nigeria’s most powerful oil sector unions — the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) — have rejected the Federal Government’s reported plan to divest significant stakes in joint venture (JV) assets managed by the Nigerian National Petroleum Company Limited (NNPCL).
At a joint press briefing in Abuja on Tuesday, PENGASSAN President, Festus Osifo, and NUPENG President, Williams Akporeha, warned that the proposed sale of up to 30–35 per cent of government holdings in the JV assets could destabilise the economy, weaken the oil sector, and endanger workers’ welfare.
Currently, the Federal Government holds between 55 and 60 per cent of such assets through the NNPCL. According to the unions, reducing government stakes might provide quick cash but would mortgage Nigeria’s long-term economic stability. They argued that such divestment could bankrupt NNPCL, impair its ability to pay salaries and benefits, and shrink its contributions to the national budget.
“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 controversy comes weeks after President Bola Tinubu directed a reassessment of the NNPCL’s 30 per cent management fee and 30 per cent frontier exploration fund deduction under the Petroleum Industry Act (PIA). Tinubu, through the Economic Management Team led by Finance Minister Wale Edun, had called for enhanced fiscal discipline, streamlined deductions from the Federation Account, and improved government savings.
But the oil unions cautioned that further tinkering with the PIA, which was enacted only three years ago after decades of delay, could create policy instability and discourage investment.
Osifo recalled that past divestments by international oil companies — including ExxonMobil, Shell, and ENI’s Agip — had left local firms such as Oando and Seplat to acquire their assets, a process that came with challenges.
“The NNPCL manages JV assets on behalf of the federation. Every oil well belongs to Nigerians collectively, not just the Federal Government. If these stakes are sold, the federation loses, and NNPCL becomes too weak to deliver,” he warned.
Akporeha also accused the Ministry of Finance of attempting to edge out the Ministry of Petroleum in joint ownership of NNPCL, describing it as a “backdoor hijack” of the national oil company. He argued that the proposed amendments would strip NNPCL of its core national role, scare away investors, and erode confidence in Nigeria’s policy direction.
“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. Every serious oil-producing country protects its national oil company. Here, we are doing the opposite,” he said.
Both unions demanded that President Tinubu personally intervene to stop the proposed divestment and call key government officials, including the Minister of Finance, the NNPCL Board Chairman, and the Group Chief Executive Officer, to order.
They warned that the move could trigger a major economic crisis by crippling Nigeria’s ability to generate sufficient revenue to fund its budget. While they stopped short of announcing an immediate strike, they vowed to “fight with everything” to resist the plan.
“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 maintained.
The rejection by PENGASSAN and NUPENG adds to the growing tension surrounding Tinubu’s economic reform agenda. While the administration pushes for quick revenue fixes, organised labour insists that selling off critical national oil assets would mortgage Nigeria’s economic future.