NUPENG
By Olamilekan Abayomi
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have strongly rejected the federal government’s plan to sell its stakes in Joint Venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL). According to PENGASSAN President Festus Osifo, the government plans to sell 30 to 35 percent of its holdings in key JVs, currently standing between 55 and 60 percent, to raise quick funds.
The unions believe that reducing the government’s stake in JV assets would cripple the nation’s major source of foreign exchange and revenue. Osifo emphasized that the oil assets belong to the federation, not just the Federal Government, and any move to sell them amounts to mortgaging Nigeria’s future. NUPENG President Williams Akporeha echoed this sentiment, stating that the planned sale would weaken NNPC Ltd, making it difficult for the company to meet its obligations, including payment of workers’ salaries and welfare.
The unions also expressed concerns about the government’s plan to amend the Petroleum Industry Act (PIA), passed in 2021. They accused the Ministry of Finance of attempting to remove the Ministry of Petroleum from joint ownership of NNPC Ltd, which they described as an aberration. Osifo stressed that national oil companies worldwide operate under petroleum ministries, and they would resist any attempt to alter this structure.
Selling government stakes in JV assets would undermine foreign exchange earnings and weaken the naira. Reducing government stakes would affect NNPC Ltd’s ability to meet its obligations, including payment of workers’ salaries and welfare. Amending the PIA would create uncertainty and undermine investor confidence in Nigeria’s oil sector. The planned sale would put the welfare of oil workers at risk, with NUPENG and PENGASSAN constituting the largest workforce in NNPC Ltd.
The unions are calling on President Bola Tinubu to intervene and halt the proposed sale and amendments. Instead of selling assets, they urge the government to focus on increasing oil production to 3 million barrels per day and creating an investor-friendly fiscal regime.
