Two of Nigeria’s most powerful oil workers’ unions have rejected the Federal Government’s plan to sell major stakes in joint venture assets managed by the Nigerian National Petroleum Company Limited (NNPCL), warning that the move would endanger the country’s economic stability.
At a joint press briefing in Abuja on Tuesday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) described the proposal as a “short-sighted policy” that would weaken the national oil company and mortgage the nation’s future.
PENGASSAN President, Festus Osifo, told journalists that government officials were considering cutting state participation in joint venture oil assets by as much as 30–35 per cent, even though the Federal Government currently holds between 55 and 60 per cent through NNPCL.
“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 said.
The unions argued that while the sale might provide short-term revenue, it would leave Nigeria exposed to long-term risks. They warned that reducing NNPCL’s ownership could bankrupt the company, compromise its ability to meet salary and welfare obligations, and cut its contributions to the national budget.
According to Osifo, every oil well is a collective asset of the Nigerian people, not just the Federal Government. “If these stakes are sold, the federation loses, and the national oil company will be too weak to deliver,” he said.
NUPENG President, Williams Akporeha, added that amending the Petroleum Industry Act (PIA), barely three years after its passage, would send a dangerous signal to investors.
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“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,” he stated.
The unions also accused the Ministry of Finance of attempting to edge out the Ministry of Petroleum from joint ownership of NNPCL, describing the move as a “backdoor hijack.” They warned that such a change would erode investor confidence and strip the company of its core national mandate.
Akporeha said: “Every serious oil-producing nation protects its national oil company. Here, we are doing the opposite, stripping ours of its strength.”
Both unions urged President Bola Tinubu to personally intervene, calling on him to halt the divestment plan and rein in officials pushing for the sale. They specifically mentioned the Minister of Finance, the NNPCL Board Chairman, and the Group Chief Executive Officer of NNPCL.
“If these proposals succeed, Nigeria will struggle to generate the revenue required to fund its budget. This is a recipe for crisis, and we will resist it,” Osifo warned.
Although the unions did not immediately announce industrial action, they vowed to “fight with everything” to stop the asset sale. “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,” Osifo insisted.
The dispute comes just weeks after President Tinubu directed the Economic Management Team, led by Finance Minister Wale Edun, to reassess deductions under the PIA, including the NNPC’s 30 per cent management fee and 30 per cent frontier exploration fund. The move was intended to optimise savings and strengthen fiscal discipline.
However, with unions raising the alarm, the plan to sell off assets has now escalated into a major confrontation that could test the administration’s reform drive.
PENGASSAN and NUPENG maintain that the nation’s interest should come before quick fixes. They warned that selling critical national oil assets would weaken the country’s economic foundation and could provoke widespread labour unrest.
