Two of Nigeria’s most powerful oil unions, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), have firmly rejected the Federal Government’s reported plan to divest significant stakes in joint venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL).
The PENGASSAN and NUPENG, which have historically played a decisive role in shaping energy policy, cautioned that such a move would not only endanger the country’s economic stability but also undermine the welfare of oil sector workers and erode national sovereignty over strategic resources.
Why PENGASSAN and NUPENG Reject Govt’s Plan to Sell Assets
At a joint press briefing in Abuja, PENGASSAN President Festus Osifo and NUPENG President Williams Akporeha described the proposal to reduce government stakes in JV assets by as much as 30–35 percent as reckless and short-sighted.
Currently, the Federal Government controls between 55 and 60 percent of JV assets through NNPCL.
According to the labour leaders, the plan prioritizes immediate cash flow over long-term sustainability.
They warned that the divestment would weaken NNPCL’s financial capacity, potentially bankrupt the national oil company, and reduce its ability to contribute meaningfully to the Federation Account.
“You cannot mortgage the future of Nigerians for temporary gains,” Osifo said emphatically, stressing that oil resources are a collective national asset and not a government property that can be traded away.
The rejection by PENGASSAN and NUPENG comes against the backdrop of President Bola Tinubu’s directive to reassess the NNPCL’s management fees and frontier exploration deductions under the Petroleum Industry Act (PIA).
Finance Minister Wale Edun has been tasked with exploring measures to optimise savings and streamline deductions from the Federation Account.
However, the PENGASSAN and NUPENG, argued that cutting government stakes would destabilise the oil industry, especially as Nigeria struggles to boost production and attract investment.
They noted that oil theft, vandalism, and underinvestment already limit the sector’s growth. Selling off assets, they warned, would compound these challenges and further discourage investor confidence.
Akporeha raised concerns about the inconsistency of government policies.
“The PIA was passed after years of negotiation and is barely three years old.
Investors are just beginning to understand it. Amending it now sends the wrong signal and creates unnecessary uncertainty,” he said.
The PENGASSAN and NUPENG leaders pointed to recent divestments by international oil companies, including ENI’s Agip subsidiary, ExxonMobil, and Shell, which sold their Nigerian assets to domestic operators such as Oando and Seplat.
While these transactions created opportunities for indigenous companies, they also highlighted the risks of abrupt ownership changes in a fragile operating environment.
Osifo argued that stripping NNPCL of its stake in JVs would leave it too weak to meet obligations, including workers’ salaries, welfare, and national budgetary contributions.
“Every oil well belongs to the Nigerian people collectively. If these stakes are sold, the Federation loses, and NNPCL will no longer function as a truly national oil company,” he said.
The PENGASSAN and NUPENG, also accused the Ministry of Finance of attempting to wrest control of NNPCL from the Ministry of Petroleum through the proposed divestment plan and amendments to the PIA.
They described the move as a “backdoor hijack” of the company that could strip it of its national identity and turn it into a weakened commercial entity.
“The Finance Ministry’s push to alter NNPCL’s ownership structure undermines its strategic role. Rather than empowering the company to compete globally, we are weakening it from within,” Akporeha declared.
Both PENGASSAN and NUPENG, urged President Tinubu to intervene directly, warning that allowing the divestment to proceed would plunge the economy into crisis.
They demanded that the President 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 fund its budget, and the oil industry will collapse into chaos. We will resist this plan with everything at our disposal,” Osifo said.
Although they stopped short of declaring industrial action, the unions left no doubt that they are prepared to escalate matters if the government insists on pursuing the plan.
The dispute between the unions and government highlights the difficult balancing act facing the Tinubu administration: addressing fiscal pressures while safeguarding national assets.
With oil revenues still accounting for more than 90 percent of Nigeria’s foreign exchange earnings, any instability in the sector carries far-reaching consequences.
Analysts note that while the government may be seeking short-term liquidity, selling strategic oil assets could undermine NNPCL’s role in stabilising the economy and fulfilling social obligations.
Labour’s opposition also raises the risk of strikes, which could disrupt production and worsen Nigeria’s fiscal challenges.
The opposition by PENGASSAN and NUPENG underscores growing labour resistance to the government’s reform agenda.
While authorities argue that divestment could ease fiscal pressure, unions maintain that selling critical national oil assets is tantamount to mortgaging the country’s future.
As debates over the Petroleum Industry Act and asset divestment intensify, the focus keyword PENGASSAN and NUPENG reject govt’s plan to sell assets captures a defining standoff between labour and government over the future of Nigeria’s oil industry.
For now, the unions’ warning is clear: weakening NNPCL could destabilise the economy, deter investors, and erode Nigeria’s sovereignty over its most valuable resources.
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