Oil Unions Reject FG’s Plan to Sell NNPCL Joint Venture Stakes

Two of Nigeria’s most influential oil unions have rejected the Federal Government’s reported 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 on Tuesday, 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 destabilise the economy, weaken the oil industry and endanger workers’ welfare.

PENGASSAN President Festus Osifo and NUPENG’s leader Williams Akporeha opposed proposals to cut government stakes in JV assets by 30 to 35 per cent. The Federal Government currently holds between 55 and 60 per cent through NNPCL.

According to the unions, the plan might generate short-term cash but would undermine Nigeria’s long-term economic security. They cautioned that selling such stakes could bankrupt NNPCL, hinder its ability to meet obligations like salaries and welfare packages, and reduce its contributions to the national budget.

“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” Osifo declared.

Wider Economic and Policy Concerns

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

Oil unions, however, argued that fresh amendments to the PIA barely three years after its passage would create more uncertainty in a sector still adapting to reform. They warned that further divestments would cripple NNPCL’s operations, citing earlier exits by ENI’s Agip subsidiary, ExxonMobil, and Shell whose assets were acquired by domestic firms such as Oando and Seplat.

“The NNPCL manages JV assets on behalf of the Federation. Every oil well belongs to the Nigerian people collectively, not just the Federal Government. If these stakes are sold, the Federation loses, and the national oil company will be too weak to deliver,” Osifo said.

Labour’s Demands

The unions also accused the Ministry of Finance of attempting to edge out the Ministry of Petroleum from NNPCL’s ownership, calling it a “backdoor hijack” of the company. They said such moves would strip NNPCL of its core national role, scare investors and damage Nigeria’s policy credibility.

“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” Akporeha warned.

The unions urged President Tinubu to personally halt the divestment plan and rein in officials pushing the agenda. They also warned that while they have not declared a strike, they would “fight with everything” to block the sale.

“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” Osifo insisted.

Rising Tensions in Economic Reforms

The unions maintained that weakening NNPCL would erode Nigeria’s economic foundation and expose the country to deeper fiscal risks. They stressed that selling off strategic oil assets for quick revenue is a recipe for crisis and could trigger industrial unrest.

Both PENGASSAN and NUPENG called on the government to prioritise national interest over short-term gains, warning that undermining NNPCL would mortgage Nigeria’s future.