The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), as well as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have rejected Federal government’s plans to sell its stakes in Joint Venture (JV) oil assets and proposed amendments to the Petroleum Industry Act (PIA), stating that the policies are dangerous and capable of bankrupting the Nigerian National Petroleum Company Limited (NNPCL).
Addressing journalists in Abuja on Tuesday, the president of PENGASSAN, Festus Osifo, explained that the government’s stake in JV assets managed by NNPCL is currently between 55 and 60 per cent.
He cautioned that moves to dispose of 30 to 35 per cent of these stakes in exchange for short-term cash would cripple the nation’s major source of foreign exchange and revenue.
Osifo noted that reducing the government’s stake would impact the ability of NNPCL to meet its obligations, including payment of workers’ salaries and welfare, stressing that such divestments could ultimately extend to major operators like TotalEnergies, Chevron and First E&P.
“Just think about it. If 30 or 40 years ago these assets were sold, where would Nigeria be getting foreign exchange from to manage our currency today? You cannot mortgage our future today and expect tomorrow’s generation not to starve.
“This is an aberration. NNPC Ltd., as it is today, is under the Ministry of Petroleum. If there are no ulterior motives, why would anyone want to remove Petroleum Incorporated from the ownership structure of NNPC Ltd.? It is totally wrong and we will not accept it,” Osifo said.
Also speaking, Williams Akporeha, NUPENG president, criticised the government’s inconsistency in oil sector reforms, noting that the PIA, which was enacted barely three years ago, has not been given enough time to stabilise before attempts to amend it.
He called on the President to call the Minister of Finance, the NNPC management and other officials driving the proposals to order, insisting that focus should rather be on raising oil production to 3 million barrels per day within the next two years and creating an investor-friendly fiscal regime.
“The investors are just beginning to understand the PIA and how to key in. Suddenly, the government is talking about amendments. When laws are inconsistent, they scare away investment. Every oil-producing nation protects its national oil company, but here, we are trying to strip ours of everything,” Akporeha said.