The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), have opposed Federal Government’s plan to sell its stakes in Joint Venture (JV) oil assets.
The two oil unions also condemned in strong, the proposed amendments to the Petroleum Industry Act (PIA).
PENGASSAN President, Mr Festus Osifo, at a world joint news conference on Tuesday in Abuja, said that both policies would destabilise the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and put the economy at risk.
According to Osifo, the planned sale of government stakes in JV assets would mortgage Nigeria’s future and cripple its oil industry.
“The oil assets belong to the federation, not just the Federal Government, but to all Nigerians and any move to sell them amounts to mortgaging Nigeria’s future.
“Government currently holds between 55 and 60 per cent stakes in JV assets managed in NNPC Ltd. on behalf of the federation.
“Selling these assets for quick cash will undermine our foreign exchange earnings, weaken the Naira and plunge the nation into budget deficits,” he said.
Osifo said that such sales would put the welfare of oil workers at risk, stressing that NUPENG and PENGASSAN constitute the largest workforce in NNPC Ltd.
He added that, if unchecked, it will weaken NNPC, bankrupt the country and endanger generations yet unborn and we say no, no, no to this plan.
On the PIA, Osifo faulted the move to remove the Ministry of Petroleum from NNPC Ltd.’s ownership structure and handover control solely to the Ministry of Finance.
“This is an aberration. Everywhere in the world, national oil companies operate under petroleum ministries. We will resist any attempt to alter this structure,” he said.
He urged the federal government to instead focus on boosting crude oil production, which could be increased from 1.7 million barrels per day to more than 3 million barrels with the right investment climate.
He added that, all government should be focused on today is how to attract investors and improve production, not quick wins that endanger tomorrow.
He, therefore, urged President Bola Tinubu to intervene and call relevant ministries and agencies to order, stressing that Nigeria could not afford to gamble with its main source of revenue.
“The government must leave our assets alone and focus on boosting crude production, not quick cash that endangers Nigeria’s future,” Osifo said.
On his part, NUPENG President, Mr Williams Akporeha, called on government to rethink its approach to economic reforms and stop considering asset sales.
“They told us subsidy was draining funds. We supported its removal in the hope of better infrastructure and security. Now, with more revenue, why sell our remaining assets?” he said.
He said the subsidy removal had already increased revenues flowing into the federation account but lamented that little had been done to address infrastructure and security challenges.
“Now the little assets that the country still has, they also want to sell them. This is not in the interest of Nigerians, nor the oil and gas industry,” he said.
On the proposed amendment to the PIA, Akporeha described it as premature and damaging to investor confidence in Nigeria’s oil sector.
“It is too early to amend the PIA. Investors need stability, not sudden changes. Government must allow the law to work before making adjustments,” he said.
According to him, the amendments being considered are targeted at weakening NNPC Ltd., Nigeria’s only national oil company.
“Every oil-producing country today has a national oil company that plays a huge role in protecting national interests. Why should Nigeria strip its own NNPC of that role?” he asked
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