Just in: PENGASSAN, NUPENG reject FG ‘s JV stake sale plan
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have kicked against the Federal Government’s 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 today, PENGASSAN President, Festus Osifo, and NUPENG President, Williams Akporeha, warned that the proposed sale could bankrupt the NNPCL, threaten workers’ welfare, and jeopardise Nigeria’s economic stability. They urged President Bola Tinubu to halt the plan and protect the country’s interest in the oil and gas sector.
According to the unions, government’s plan to cut its stakes in JV assets- currently between 55 and 60 per cent by as much as 30 to 35 per cent for quick cash is “short-sighted and dangerous.” They noted that such a move would weaken the NNPCL’s ability to meet critical obligations, including salaries, benefits, and contributions to the national budget.
The oil workers also raised concerns about alleged moves to amend the Petroleum Industry Act (PIA) to remove the Ministry of Petroleum from joint ownership of the NNPCL. They described the move as a backdoor attempt to hijack the national oil company and strip it of its core role in managing the country’s oil assets.
Osifo said past divestments by international oil companies such as ENI, ExxonMobil, and Shell, which saw their Nigerian operations sold to local firms, should serve as a warning.
“If we allow this to continue, it has a way of making NNPC bankrupt in the next few years. Whoever mooted this idea, whether from the Ministry of Petroleum, Ministry of Finance, NNPC Ltd, or the Presidency itself, we reject it 100 per cent,” he said.
Akporeha, on his part, faulted the government’s inconsistency in oil sector reforms, stressing that the PIA, passed just three years ago, has not been given enough time to stabilise. He warned that constant policy changes could scare away investors and undermine confidence in Nigeria’s oil and gas industry.
The unions insisted they would resist any policy or amendment that threatens the survival of NNPCL, calling on President Tinubu to intervene and stop the planned sale. “Every oil-producing nation protects its national oil company, but here, we are trying to strip ours of everything,” Akporeha said.
