PENGASSAN and NUPENG Reject Government’s Plan to Sell JV Assets

PENGASSAN and NUPENG Reject Government’s Plan to Sell JV Assets

“You Cannot Mortgage the Future of Nigerians” – Osifo

At the joint press briefing, PENGASSAN President Festus Osifo and NUPENG President Williams Akporeha condemned the plan. Osifo stated clearly:

“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.”

The unions warned that reducing government holdings in critical oil assets could bankrupt NNPCL, impair its ability to meet obligations such as salaries and welfare packages, and shrink its contributions to the national budget.

The controversy follows President Bola Tinubu’s directive last month for a reassessment of the NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act (PIA). The President tasked the Economic Management Team, led by Finance Minister Wale Edun, to optimise government savings, streamline deductions from the Federation Account, and enhance fiscal discipline during global financial strain.

Oil unions say the administration’s latest policy moves, including talk of amending the PIA, could create more uncertainty in a sector that only recently secured a comprehensive reform law after decades of delays. According to Williams Akporeha:

“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 added that every serious oil-producing nation protects its national oil company. “Here, we are doing the opposite, stripping ours of its strength,” Akporeha said.

Osifo recalled previous divestments by international oil companies (IOCs) such as ENI’s Agip subsidiary, ExxonMobil, and Shell, whose Nigerian assets were acquired by domestic firms such as Oando and Seplat. He noted that the NNPCL manages JV assets on behalf of the Federation, meaning every oil well belongs collectively to 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 argued.

The unions also accused the Ministry of Finance of attempting to remove the Ministry of Petroleum from joint ownership of NNPC, describing it as a “backdoor hijack” of the company. They argued that the proposed amendments would strip NNPCL of its core national role, scare away investors, and send negative signals about Nigeria’s policy consistency.

The unions demanded that President Tinubu personally halt the divestment plan and rein in officials pushing for changes. They specifically urged him to call the Minister of Finance, the NNPCL Board Chairman, and the Group Chief Executive Officer of NNPCL to order.

“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 maintained.

While the unions stopped short of announcing a strike, they issued a strong warning that they would “fight with everything” to prevent the sale. Osifo insisted:

“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.”

Akporeha further criticised the government’s inconsistency, noting that the PIA, enacted barely three years ago, had not been given enough time to stabilise before fresh amendments were being considered.

“When laws are inconsistent, they scare away investment. The investors are just beginning to understand the PIA, and suddenly government wants to change it again,” he said.

The oil unions’ rejection adds another layer of tension to the government’s economic reform drive. While the administration seeks quick fixes to address fiscal pressures, organised labour insists that selling off critical national oil assets would mortgage the country’s future.

Both PENGASSAN and NUPENG have urged President Tinubu to prioritise national interest over short-term gains, warning that any move to weaken NNPCL could erode Nigeria’s economic foundation and trigger industrial unrest.

This standoff between Nigeria’s oil unions and the Federal Government reflects the high stakes involved in the country’s oil and gas sector. As the nation grapples with economic challenges, decisions about its energy assets must balance immediate revenue needs with long-term stability, workers’ welfare, and national interest.