The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have voiced strong opposition to the Federal Government’s plan to sell its stakes in joint‑venture (JV) oil assets. Both unions also condemned the proposed amendments to the Petroleum Industry Act (PIA), warning that these policies could destabilise the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and jeopardise the economy.
PENGASSAN President Festus Osifo argued that the sale of government stakes in JV assets would have far‑reaching consequences, including a loss of foreign‑exchange earnings, a weakening of the naira and the emergence of budget deficits. He stressed that oil assets belong to the federation, not merely to the Federal Government, and that selling them would amount to mortgaging Nigeria’s future. Osifo noted that the government currently holds between 55 % and 60 % of JV assets managed by NNPC Ltd. on behalf of the federation.
The unions are also concerned that the proposed PIA amendments would remove the Ministry of Petroleum from NNPC Ltd.’s ownership structure and place control solely with the Ministry of Finance. They argue that this would weaken NNPC and endanger the country’s main source of revenue. Instead, they call on the government to focus on boosting crude‑oil production, which could rise from 1.7 million barrels per day to over 3 million barrels with the right investment climate.
NUPENG President Williams Akporeha urged the government to rethink its approach to economic reforms and stop considering asset sales. He pointed out that the removal of subsidies has already increased revenues flowing into the federation account, yet little has been done to address infrastructure and security challenges. Akporeha described the proposed PIA amendment as premature and likely to damage investor confidence in Nigeria’s oil sector.
The unions’ opposition underscores the need for careful consideration of the potential consequences of these policies. With Nigeria’s economy heavily reliant on the oil and gas sector, any decisions in this area could have significant implications for the country’s future. The government is being urged to prioritise boosting crude‑oil production and improving the investment climate rather than pursuing quick fixes that could endanger the nation’s primary source of revenue.
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