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 plan by the Federal Government to sell its stakes in Joint Venture (JV) oil assets.
The two oil unions at a press briefing on Tuesday in Abuja, also condemned the proposed amendments to the Petroleum Industry Act (PIA).
According to the President of PENGASSAN, Comrade Festus Osifo, both policies would destabilise the Nigerian National Petroleum Company (NNPC) Limited and putt the economy at risk.
Osifo also added that the planned sale of government stakes in JV assets would mortgage Nigeria’s future, cripple the oil industry and put the welfare of oil workers especially members of NUPENG and PENGASSAN who constitutes the largest workforce in NNPC Ltd, at risk.
While noting that government’s focus should be on how to attract investors and improve production, not quick wins that endanger tomorrow, Osifo urge 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.
He said: “The government must leave our assets alone and focus on boosting crude production, not quick cash that endangers Nigeria’s future.
“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.”
Osifo further warned that if left unchecked, it would “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.”
Osifo further urged the federal government to 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.
On his part, NUPENG President, Mr Williams Akporeha, called on government to rethink its approach to economic reforms and stop considering asset sales.
Akporeha who noted that the removal of subsidy of petroleum products had already increased revenues flowing into the federation account, however lamented that little had been done to address infrastructure and security challenges.
“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?
“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.”
On the proposed amendment to the PIA, Akporeha who described the move as premature and damaging to investor confidence in Nigeria’s oil sector, noted that the amendments being considered were targeted at weakening NNPC Ltd., Nigeria’s only national oil company.
“It is too early to amend the PIA. Investors need stability, not sudden changes. Government must allow the law to work before making adjustments.
“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?”