The Nigerian government’s plan to sell its stakes in joint venture oil assets has been met with opposition from the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). The two unions have also condemned proposed amendments to the Petroleum Industry Act (PIA). According to PENGASSAN President, Festus Osifo, these policies would destabilize the Nigerian National Petroleum Company Limited (NNPCL) and put the economy at risk.

The planned sale of government stakes in joint venture assets would, in Osifo’s words, “mortgage Nigeria’s future” and cripple the oil industry. The government currently holds between 55 and 60 percent stakes in these assets, which are managed by the NNPC on behalf of the federation. Selling these assets, Osifo argued, would undermine Nigeria’s foreign exchange earnings, weaken the Naira, and plunge the nation into budget deficits. This move would also put the welfare of oil workers at risk, as NUPENG and PENGASSAN constitute the largest workforce in the NNPC.

Osifo also criticized the proposed amendments to the PIA, which would remove the Ministry of Petroleum from the NNPC’s ownership structure and hand over control to the Ministry of Finance. Instead of pursuing these changes, Osifo urged the government to focus on boosting crude oil production, which could be increased from 1.7 million barrels per day to over 3 million barrels with the right investment climate. He emphasized that the government should prioritize attracting investors and improving production, rather than seeking quick fixes that could endanger the country’s future.

The PENGASSAN president called on President Bola Tinubu to intervene and ensure that relevant ministries and agencies are held accountable. With the oil industry being Nigeria’s main source of revenue, Osifo stressed that the country cannot afford to gamble with its economic future. The opposition from NUPENG and PENGASSAN highlights the need for careful consideration and consultation in policymaking, particularly when it comes to critical sectors like the oil industry. As the government weighs its options, it is essential to prioritize the long-term interests of the nation and its people.