Oil Unions kick Against Asset Sale And PIA Review

Two of Nigeria’s biggest oil workers’ unions, PENGASSAN and NUPENG, have rejected plans by the Federal Government to sell part of its stakes in joint venture (JV) oil assets and amend the Petroleum Industry Act (PIA).

At a joint briefing in Abuja on Tuesday, the unions described the proposals as reckless moves that could bankrupt the Nigerian National Petroleum Company Limited (NNPCL) and jeopardize the country’s economic future.

PENGASSAN president, Festus Osifo, said government currently controls 55 to 60 percent of JV assets through the NNPCL but now plans to dispose of 30 to 35 percent for quick cash. He warned that the move would cripple Nigeria’s main source of foreign exchange and revenue.

“Imagine if these assets were sold 30 or 40 years ago, where would Nigeria be getting foreign exchange to manage its currency today? You cannot mortgage our future and expect tomorrow’s generation not to starve,” Osifo said. He added that the plan would erode NNPCL’s capacity to meet obligations, including workers’ salaries, and could trigger divestments by major operators like Chevron and TotalEnergies.

On the planned PIA amendment, Osifo accused the Ministry of Finance of seeking to weaken the Petroleum Ministry’s role in NNPCL’s ownership structure, describing the move as “totally wrong.”

NUPENG president, Williams Akporeha, faulted government’s inconsistency in oil sector reforms. He noted that the PIA, passed only three years ago, was just beginning to gain investor acceptance before talk of amendments emerged.

“When laws are inconsistent, they scare away investment. Every oil-producing country protects its national oil company, but here we are trying to strip ours,” Akporeha said.

The unions urged President Bola Tinubu to step in and halt the plans. They advised government to focus instead on ramping up production to three million barrels per day in the next two years and creating policies that attract investors.

They warned that if allowed, the asset sales and PIA changes would weaken NNPCL and threaten Nigeria’s long-term economic survival.