From Atiku Sarki, Abuja
The Petroleum and Natural Gas Senior Association Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have kicked against the Federal Government’s plan to sell its stakes in Joint Venture (JV) oil assets and amend the Petroleum Industry Act (PIA).
According to the Unions, the proposed plan by the Federal Government to sale its oil assets would not only mortgage Nigeria’s future, but it would also cripple the oil industry and endanger the welfare of the oil workers.
Briefing news men at a joint press conference organized by the two Unions in Abuja on Tuesday, the PENGASSAN President, Comrade Festus Osifo has observed that currently government holds 55–60% stakes in JV assets, insisting that “selling them for quick cash will undermine foreign exchange earnings, weaken the naira and plunge the nation into budget deficits.”
The PENGASSAN President who is also the President of TUC further accused the Federal Government of plotting to amend the Petroleum Industry Act(PIA) in an effort to shut down the Nigerian National Petroleum Company Limited. Noting that this move would render thousand of oil workers into jobless.
He, however noted that the planned sale of government assets in Oando,Seplat, Renaissance Africa and others which he said is like selling off the future of Nigerians just to have more money for their personal gain.
Believing that the NNPC Limited which is managing the assets on behalf of the federation would definitely be destabilized.
He described it as an”aberration and faulted plan”in the side of federal government to remove the Ministry of Petroleum from NNPC Ltd.’s ownership structure.
He said instead for government to focus on increase crude oil production from the current 1.7million barrels in the next three years and attract more investments into the sector, but they are planning to sell some huge percentage so that they can have cash to spend else where.
“As PENGASSAN and NUPENG, we say a big No, No, No to this plan”, Osifo warm.
The President of PENGASSAN also advocated for the adoption of the Nigeria Liquified Natural Gas(NLNG) model for managing national oil assets such as refineries.
He noted that under the NLNG structure, the private sector has 51 percent while government retain 49 percent and he said there has been efficiency and profitability in the structure.
Saying that selling off these assets is not the best solution, but what is require or needed is to run our facilities under the NLNG model to guarantee sustainability.
“As it stands, selling off these assets is not the solution. What we need is to run our facilities under the NLNG model to guarantee sustainability,” he stated.
On his part, the NUPENG President, Comrade Williams Akporeha, noted that already subsidy removal had boosted revenue inflows, but questioning why government still wants to dispose of national assets.
Comrade Akporeha described government’s action as”poor implementation”of the PIA. Observing that the law which came into force in the last two years is yet to be fully implemented.
“Today, both States and Federal Government are raking more money monthly, yet they want to sell the little assets Nigerians still have.This is not in the national interest”. Akporeha said.
He advised that instead of federal government to sales its asset, it would have been better for the government to think of how to tackle infrastructures and security challenges in order to create a stable investment climate.
Both the two unions strongly condemned the proposed plan by the government and vowed to reject and resist any attempt by the government, warning that such plans would have a direct negative impacts and would affect Nigeria’s economy and future generations.