At a joint press briefing in Abuja on Tuesday, PENGASSAN President, Festus Osifo, and NUPENG President, Williams Akporeha, condemned the move, describing it as “short-sighted and dangerous.” They argued that reducing the government’s stake — currently between 55% and 60% — by up to 35% in some ventures would weaken NNPC Ltd, threaten workers’ welfare, and jeopardize the country’s economic future.
The unions recalled earlier divestments by international oil giants such as ENI, ExxonMobil, and Shell, which transferred their Nigerian assets to domestic companies. They warned that further government sales would undermine national revenue and mortgage the future of younger generations.
“Government cannot mortgage our future today and leave the country starving tomorrow,” Osifo said. “This plan could bankrupt NNPC within years and cripple its ability to meet obligations like salaries, welfare, and contributions to the national budget.”
Concerns Over Petroleum Industry Act (PIA) Amendment
Beyond asset sales, the unions also raised alarm over alleged attempts by the Ministry of Finance to push for amendments to the Petroleum Industry Act (PIA), which was passed in 2021. According to them, the plan would strip the Ministry of Petroleum of joint ownership of NNPC Ltd — a move they described as a “backdoor attempt to hijack” the national oil company.
They argued that such amendments would distort the structure of the oil and gas industry, undermine investor confidence, and erode NNPC’s core role as a national oil company.
“If you don’t have ulterior motives, why move NNPC Ltd’s management away from its rightful place? This sends negative signals to investors and portrays government as unwilling to uphold its own laws,” the unions stated.
NLC’s Support and Strike Threat
The unions’ concerns have drawn the backing of the Nigeria Labour Congress (NLC), which warned that attempts to eject oil workers with military force could spark a nationwide strike, further threatening an already fragile economy.
They called on President Bola Tinubu to intervene immediately, halt the divestment plans, and stop the push to amend the PIA.
“Mr. President must call the Finance Ministry, NNPC Board, and management to order. Nigeria cannot afford this reckless gamble,” the unions warned.
Possible Economic Crisis
Stakeholders fear that the standoff could escalate into an industrial crisis capable of crippling oil production and plunging the economy into deeper uncertainty.
For now, NUPENG and PENGASSAN have vowed to “resist the plan with everything at their disposal,” warning that Nigeria’s oil wealth should not be sold off for “quick cash.”
