Leading oil sector unions, PENGASSAN and NUPENG, have jointly condemned an alleged plan by the Federal Government to sell off a portion of its stakes in Joint Venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL) and international oil companies.
The unions warned that the move, if executed, would severely undermine Nigeria’s economic stability, weaken the NNPCL, and hand over strategic national assets to private and foreign interests.
The controversy follows President Bola Ahmed Tinubu’s directive last month for a review of NNPCL’s 30% management fee and frontier exploration fund deductions under the Petroleum Industry Act (PIA). Tinubu tasked the Economic Management Team with reassessing the fiscal structure to optimize national savings, reduce pressure on the Federation Account, and improve economic efficiency amid global financial headwinds.
Union Leaders Sound Alarm
Speaking at a joint press conference in Abuja on Tuesday, PENGASSAN President Festus Osifo and NUPENG President Williams Akporeha voiced strong opposition to what they described as a “desperate attempt to mortgage Nigeria’s oil future.”
“The government wants to reduce its stake in these assets. In some cases, they are talking of selling up to 35%. But we say no.
You cannot mortgage the future of Nigerians for temporary gains,” Osifo declared.
He noted that NNPCL currently holds between 55–60% in JV assets, and any divestment would significantly reduce the company’s capacity to fund government operations, including budget contributions, salary payments, and welfare programs.
National Oil Company at Risk, Unions Warn
The unions warned that such asset sales would weaken NNPC Ltd operationally and financially, reduce national budget contributions, shrink FX reserves, expose the oil sector to foreign control and bankrupt NNPC Ltd within years.
“The NNPCL manages JV assets on behalf of the Federation. Every oil well belongs to Nigerians—not just the Federal Government,” Osifo added. “If these stakes are sold, the federation loses.”
The unions also rejected a proposed amendment to the Petroleum Industry Act, which they say would further marginalize the Ministry of Petroleum and strip NNPCL of its core national mandate.
“The PIA was passed after years of struggle. Investors are just beginning to adapt to it. Now, the government wants to amend it again? That is a dangerous signal,” said Akporeha.
He added that frequent policy shifts deter investors and send the wrong message about Nigeria’s commitment to its own laws.
The labour leaders also took issue with a proposed amendment to the Petroleum Industry Act (PIA), which they said would further erode NNPCL’s autonomy and scare off foreign investment.
“The PIA was passed after years of negotiation and struggle. It’s barely three years old, and now they want to change it again? That sends a dangerous signal to investors,” said Akporeha.
They accused the Ministry of Finance of attempting to edge out the Ministry of Petroleum Resources from co-ownership and governance structures of NNPCL—a move they say could destabilize the sector.
“We Will Resist This Plan” – Oil Workers Vow Nationwide Action
Both unions pledged to resist any attempt to sell the JV stakes or weaken the Petroleum Industry Act through hasty amendments. They warned that pushing through with the plan would have devastating consequences for the national budget and economic sustainability.
“Whoever mooted this idea, whether from the Ministry of Petroleum, Finance, NNPCL, or even the Presidency, we reject it 100 per cent,” Osifo declared. “It will bankrupt NNPCL in a few years. We will not allow that to happen.”
