PENGASSAN, NUPENG Reject FG’s Plan to Sell Assets, Warn of Economic Risk
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 the Federal Government’s proposal to divest some of its joint venture (JV) oil and gas assets, managed by the Nigerian National Petroleum Company Limited (NNPCL). Alongside this, the unions rejected proposed amendments to the Petroleum Industry Act (PIA), warning the moves could undermine the country’s economic stability.
Key Facts & Figures
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Current Stake: The government presently holds 55–60% stakes in JV assets under NNPCL.
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Proposed Divestment: The plan under fire seeks to cut the government’s stake by 30–35% in some JV oil assets. (
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Concerns Over PIA Amendment: This comes amid discussions about amending the PIA — especially moves that might reduce the Ministry of Petroleum’s ownership role in NNPCL or shift more control to the Ministry of Finance.
Unions’ Arguments & Warnings
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PENGASSAN President Festus Osifo and NUPENG President Williams Akporeha argued that selling off such stakes for quick cash would mortgage Nigeria’s future, potentially bankrupt the NNPCL, degrade foreign exchange earnings, and hurt revenue streams for government.
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They cautioned that NNPCL might lose capacity to meet obligations, including salaries, staff welfare, and contributions to national budget, if government stakes are significantly reduced.
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According to the unions, such proposals send negative signals to investors, who are still adapting to the current PIA regime. Constant changes create uncertainty.
Broader Implications
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Economic stability risk: Reduced government ownership of JV assets can diminish federal revenue and foreign exchange inflows.
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Investor confidence: Frequent policy amendments and perceived instability might discourage foreign investment in the oil sector. National sovereignty & control: Unions claim that national oil assets are collective wealth of the federation, not just a revenue stream to be sold off.
Unions’ Demands
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Halt the proposed sale of government stakes in JV assets. Stop attempted PIA amendments that would restructure NNPCL in ways that weaken its national mandate.
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Focus on increasing oil production (targeting 3 million barrels per day) and creating an investor-friendly fiscal regime rather than relying on asset sales.
Final Thoughts
The debate between the government’s need for revenue and the unions’ concerns over long-term economic health reflects a larger tension in Nigeria’s policy space: short-term fixes vs sustainable development. As Nigeria grapples with fiscal pressure, global economic headwinds, and the imperative to maintain economic sovereignty, the decisions made on JV stakes and oil sector reforms will have lasting consequences.
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