Don’t mortgage tomorrow: The real cost of FG’s oil stake sale
Oil and gas
The clash in Nigeria’s oil sector is getting louder, and this time, it cannot be ignored. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have openly rejected the Federal Government’s plan to sell a significant part of its stakes in joint venture oil and gas assets managed by the Nigerian National Petroleum Company Limited (NNPCL). They have also condemned alleged plans to amend the Petroleum Industry Act (PIA) in ways that would alter the ownership structure and reduce oversight of NNPCL.
To many Nigerians, this might sound like a technical dispute between unions and government, but at its core, it is a debate about the future of our oil wealth, workers’ rights, and national sovereignty.
Selling off government stakes may look like an easy way to raise cash in the short term, especially with Nigeria’s struggling economy and revenue shortfalls. But the unions are right to ask: at what cost? Oil remains Nigeria’s primary source of foreign exchange and a major contributor to national revenue. Reducing our stake in joint ventures could mean smaller government earnings over time and less control over a sector that is critical to our future. It is like selling the family house to pay one term’s school fees . So, what happens next term?
Beyond asset sales and legislative changes, NUPENG has also raised alarms about alleged anti-union practices at Dangote Refinery, where drivers reportedly face restrictions on union membership. If true, this is not just a labour dispute but a violation of workers’ rights. Unionisation is not a luxury; it is a legal right enshrined in Nigeria’s labour laws and international conventions. Denying workers the right to organize sets a dangerous precedent and could easily turn what should be a smooth refinery operation into a season finale of “Strike vs. Government.”
At the heart of this standoff lies a bigger question: whose interest does government policy ultimately serve? The unions argue that national interest must come first before foreign investors, before quick cash injections, and before political expediency. They are calling for transparency, for a thorough cost-benefit analysis before any divestment, and for a commitment to protecting jobs and institutional integrity. These are not unreasonable demands. After all, you cannot build investor confidence while knocking down worker confidence at the same time.
President Tinubu and his economic team must listen carefully. This is not the time for quick-fix solutions that look good on paper but cost Nigeria more in the long run. The government should open up the conversation, consult widely with unions, industry experts, and civil society, and make sure that any step taken strengthens rather than weakens the oil sector. The rights of workers must be safeguarded, and the integrity of NNPCL must not be sacrificed on the altar of “urgent 2k” fiscal relief.
Nigeria stands at a crossroads. We can either rush into quick fixes that deliver temporary revenue but cripple our future, or we can act with foresight, fairness, and courage to protect the nation’s most valuable asset ‘its energy sector.’ If we choose the latter, this crisis could become a turning point, one that strengthens trust between government and labour, improves investor confidence, and secures a more sustainable future for every Nigerian. And maybe, just maybe, we can stop turning every oil sector debate into a national deadlock.
