Two of Nigeria’s most powerful oil and gas unions have pushed back against the Federal Government’s reported plan to divest significant portions of its interests in joint venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL).
In a joint press conference held Tuesday in Abuja, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) warned that the move could trigger long-term damage to the country’s economy, weaken its energy sector, and put thousands of jobs at risk.
The unions voiced strong opposition to a proposal that would reduce the Federal Government’s stake in JV assets by as much as 30 to 35 per cent, down from the current shareholding of between 55 and 60 per cent. The assets are currently held through NNPCL on behalf of the Federation.
“You cannot mortgage the future of Nigerians for temporary gains,” said PENGASSAN President, Festus Osifo, who addressed the media alongside NUPENG President, Williams Akporeha.
They described the proposal as a “quick-cash strategy” that may generate short-term revenue, but warned it would erode the long-term financial viability of NNPCL, potentially leading to insolvency. They also argued that reducing federal stakes could limit the company’s ability to meet obligations, including staff salaries, welfare packages, and contributions to the national budget.
The renewed divestment plan comes in the wake of President Bola Tinubu’s recent directive to review key financial structures within the oil and gas sector. These include NNPCL’s 30 per cent management fee and the 30 per cent allocation for frontier exploration, as stipulated under the Petroleum Industry Act (PIA).
President Tinubu, via the Economic Management Team led by Finance Minister Wale Edun, has been pushing for a restructuring of government deductions from the Federation Account to improve fiscal discipline amid growing economic pressures.
However, both unions argue that these efforts, combined with talk of amending the PIA, are sending unsettling signals to investors and creating instability in a sector that only recently achieved long-awaited reform.
“The PIA took years of negotiation and effort. It hasn’t even had time to stabilise. Now we’re talking about changing it again?” Akporeha asked, warning that such inconsistencies could deter both local and foreign investment.
Divestment Echoes Past Mistakes, Unions Say
The unions drew parallels to earlier divestments by international oil giants like Shell, ExxonMobil, and ENI’s Agip, which sold off Nigerian assets to local firms such as Seplat and Oando. They said those transactions weakened the sector’s technical and financial base, and they fear a similar outcome if NNPCL is stripped of vital assets.
“NNPCL doesn’t own these wells alone, they belong to the Nigerian people. Selling off the stakes weakens the national oil company and diminishes the Federation’s control over its most valuable resource,” Osifo said.
They also accused the Federal Ministry of Finance of attempting to sideline the Ministry of Petroleum Resources in a bid to control NNPCL through “the back door.” According to them, this would undermine the company’s national mandate and destabilise its governance framework.
While stopping short of declaring industrial action, the unions issued a stern warning, stating they would “fight with everything” to stop the sale of any NNPCL-owned JV assets.
“Whether this idea came from the Ministry of Finance, Petroleum, NNPCL, or even the Presidency, we reject it completely. If allowed to happen, it will bankrupt NNPCL and threaten the country’s budgetary stability,” said Osifo.
They urged President Tinubu to personally intervene and halt the process, calling on him to direct the Finance Minister, the NNPCL Board Chairman, and the Group CEO to abandon the proposal.
“This is a red flag for the oil industry and the wider economy. We can’t build a stable future on the back of policies that erode national capacity,” Akporeha added.
What’s at Stake
The unions’ strong resistance adds another layer of tension to the Tinubu administration’s broader economic reform agenda. As the government searches for solutions to close revenue gaps and ease fiscal pressure, labour groups say selling off key oil assets could do more harm than good.
With rising oil production and increasing global demand, union leaders argue that strengthening NNPCL, not shrinking it is the path to long-term national prosperity.
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