From Adanna Nnamani, Abuja
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have strongly opposed plans by the Federal Government to reduce its stakes in Joint Venture (JV) oil assets, warning that such a move could plunge the country into deeper economic crisis.
The unions, while speaking at a joint press briefing in Abuja on Tuesday, described the planned asset sales and proposed amendments to the Petroleum Industry Act (PIA) as dangerous policies capable of bankrupting the Nigerian National Petroleum Company Limited (NNPCL) and mortgaging the future of generations yet unborn.
President of PENGASSAN, Festus Osifo, explained that the government currently holds between 55 and 60 per cent stake in JV assets managed by NNPCL on behalf of the Federation. He cautioned that moves to dispose of 30 to 35 per cent of these stakes in exchange for short-term cash would cripple the nation’s major source of foreign exchange and revenue.
“Just think about it. If 30 or 40 years ago these assets were sold, where would Nigeria be getting foreign exchange from to manage our currency today? You cannot mortgage our future today and expect tomorrow’s generation not to starve,” Osifo declared. The labour leader added that reducing the government’s stake would erode NNPCL’s ability to meet its obligations, including payment of workers’ salaries and welfare, stressing that such divestments could ultimately extend to major operators like TotalEnergies, Chevron and First E&P.
On the proposed amendment of the PIA, Osifo accused the Ministry of Finance of plotting to strip the Ministry of Petroleum of its stake in NNPCL through the back door.
According to him, “This is an aberration. NNPC Ltd., as it is today, is under the Ministry of Petroleum. If there are no ulterior motives, why would anyone want to remove the Petroleum Incorporated from the ownership structure of NNPC Ltd.? It is totally wrong and we will not accept it.”
On his part, NUPENG president, Williams Akporeha, criticised government’s inconsistency in oil sector reforms, noting that the PIA, which was enacted barely three years ago, has not been given enough time to stabilise before attempts to amend it.
“The investors are just beginning to understand the PIA and how to key in. Suddenly, the government is talking about amendments. When laws are inconsistent, they scare away investment. Every oil producing nation protects its national oil company, but here, we are trying to strip ours of everything,” Akporeha said.
The unions urged President Bola Tinubu to call the Minister of Finance, the NNPC management and other officials driving the proposals to order, insisting that focus should rather be on raising oil production to 3 million barrels per day within the next two years and creating an investor-friendly fiscal regime.
They warned that if unchecked, the planned asset sales and amendments would not only undermine NNPCL but also weaken Nigeria’s economic survival.
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