NUPENG, PENGASSAN reject FG's plan to sell JV Oil assets, warn of economic fallout

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have strongly opposed the Federal Government’s plan to sell its stakes in Joint Venture (JV) oil assets.

The unions also condemned proposed amendments to the Petroleum Industry Act (PIA), warning that both measures could destabilise the Nigerian National Petroleum Company Limited (NNPCL) and jeopardise the nation’s economy.

Speaking at a joint press conference in Abuja on Tuesday, PENGASSAN President, Mr Festus Osifo, described the sale of government stakes in JV assets as a move that would “mortgage Nigeria’s future and cripple its oil industry.”

According to him, “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.

“The government currently holds between 55 and 60 per cent stakes in JV assets managed by 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 further highlighted the risk to workers’ welfare, noting that NUPENG and PENGASSAN constitute the largest workforce in NNPC Ltd.

“If unchecked, this policy will weaken NNPC, bankrupt the country, and endanger generations yet unborn. We say no, no, no to this plan,” Osifo stressed.

On the PIA amendments, Osifo criticised the move to remove the Ministry of Petroleum from NNPC Ltd.’s ownership structure, handing control solely to the Ministry of Finance.

He urged the Federal Government to instead focus on boosting crude oil production, which he said could rise from 1.7 million barrels per day to over 3 million barrels with the right investment climate.