By John Umeh
Two of Nigeria’s most powerful oil unions — the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) — have declared total opposition to the Federal Government’s plan to sell off significant stakes in joint venture (JV) oil assets managed by the Nigerian National Petroleum Company Limited (NNPCL).
At a joint press briefing in Abuja, union leaders Festus Osifo of PENGASSAN and Williams Akporeha of NUPENG insisted that the proposed sale, which could see government reduce its ownership by as much as 30 to 35 percent, would cripple the NNPCL, undermine Nigeria’s oil sovereignty, and threaten workers’ welfare.
Currently, the Federal Government holds between 55 and 60 percent of these JV assets through the NNPCL. Selling off such a large chunk, the unions warned, would generate short-term cash at the expense of long-term national security and stability.
Unions Warn of Dangerous Consequences
The oil unions argued that the sale would weaken NNPCL to the point where it could no longer meet critical obligations such as salaries, welfare packages, and its yearly contributions to the national budget.
“Every oil well belongs to the Nigerian people collectively, not just the Federal Government,” Osifo said. “Selling these stakes means mortgaging the future of the country for temporary gains. If this happens, NNPCL will be bankrupt in a few years.”
They recalled how recent divestments by international oil companies (IOCs) such as ENI’s Agip subsidiary, ExxonMobil, and Shell had seen domestic players like Oando and Seplat step in. While those divestments were market-driven, the unions stressed that it would be reckless for government itself to deliberately strip down the national oil company’s strength.
Akporeha added that the move would send the wrong signal to international investors, creating policy instability at a time when the industry is still adjusting to the Petroleum Industry Act (PIA).
The PIA Debate and Policy Flip-Flops
President Bola Tinubu had recently directed a reassessment of certain provisions of the PIA, including NNPC’s 30 percent frontier exploration fund and its management fee. Finance Minister and Coordinating Minister of the Economy, Wale Edun, has been leading the push for fiscal reforms aimed at reducing waste and generating immediate revenue.
But the oil unions say that the administration is rushing into dangerous waters. “The PIA was enacted barely three years ago after decades of struggle,” Akporeha explained. “Investors are just beginning to adapt to it, and now government wants to tamper with it again. That is a dangerous signal — it scares investment away.”
The unions also accused the Ministry of Finance of attempting to edge out the Ministry of Petroleum from joint ownership of the NNPCL — a move they described as a “backdoor hijack” of the company. According to them, such attempts could destabilise NNPC, frighten investors, and erode its role as a truly national oil company.
A Direct Appeal to Tinubu
Both PENGASSAN and NUPENG have called on President Tinubu to personally halt the plan and rein in government officials pushing for the asset sale. They specifically urged him to call the Finance Minister, the NNPCL Board Chairman, and the Group Chief Executive Officer to order.
“If these proposals succeed, Nigeria will struggle to raise the revenue required to fund its budget. This is a recipe for crisis, and we will resist it,” Osifo warned.
While the unions stopped short of announcing strike action, they issued a strong threat that they would “fight with everything” to prevent the sale.
“Whoever brought up this idea — whether from the Ministry of Petroleum, Ministry of Finance, NNPCL, or even the Presidency itself — we reject it 100 percent,” Osifo declared.
Labour vs. Government: A Brewing Showdown
This confrontation adds another layer of tension to Tinubu’s ongoing economic reform agenda. The government is desperate to shore up revenue and cut costs amid global financial strain. However, organised labour argues that the administration’s approach is too focused on quick fixes that mortgage Nigeria’s future.
“Every serious oil-producing nation protects its national oil company,” Akporeha said. “But here in Nigeria, we are stripping ours of its power. That is unacceptable.”
The unions’ rejection now places the Tinubu administration in a difficult position: proceed with the asset sale at the risk of industrial unrest, or reverse course and find alternative means of boosting revenue.
For now, one thing is clear: Nigeria’s oil workers are prepared to draw a line in the sand. And if the government ignores their warnings, the country could be heading for yet another round of high-stakes battles between labour and the state — with the oil sector, and the nation’s economy, hanging in the balance.
