Oil Workers Warn of Economic Collapse, Naira Crash if FG Sells JV Assets

By Chinedu Echianu

The Nigerian economy could face imminent collapse and the naira may fall to as low as ₦5,000 to a dollar if the federal government goes ahead with plans to sell its stakes in joint venture oil partnerships, oil workers have warned.

The alarm was raised Tuesday in Abuja by the Presidents of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), Williams Akporeha, at a joint press conference.

Osifo accused the federal government of plotting to amend the Petroleum Industry Act (PIA) in a bid to shut down the Nigerian National Petroleum Company Limited (NNPCL), a move he said would render thousands of oil workers jobless.

He further described the planned sale of government assets in Oando, Seplat, Renaissance Africa and others as “selling off the future of Nigerians just to have more money for today.”

“Currently, government owns between 55 to 60 percent of the joint venture assets in these companies, managed by NNPCL. The plan is to sell some huge percentages so they can have cash to spend elsewhere. But as PENGASSAN and NUPENG, we say a big No to this plan,” Osifo said.

He urged the government to focus instead on increasing crude oil production from the current 1.7 million barrels per day to three million barrels in the next three years while attracting fresh investments into the sector. According to him, the move cannot be described as privatisation, but a brazen attempt to mortgage Nigeria’s future.

On his part, NUPENG President Williams Akporeha decried what he called the “poor implementation” of the PIA, noting that a law which came into force just two years ago should not be hastily amended.

“The sale of our joint venture assets at this point in time is not necessary. We supported subsidy removal because we believed it would free up resources for development. Today, states and the federal government are raking in more money monthly, yet they want to sell the little assets Nigerians still have. This is not in the national interest,” Akporeha said.

He warned that amending the PIA so soon could create doubts in the minds of investors who may see Nigeria’s regulatory framework as unstable and unreliable.

Osifo also advocated for the adoption of the Nigeria Liquefied Natural Gas (NLNG) model for managing critical national oil assets such as refineries. He explained that under the NLNG structure, the private sector holds 51 percent while government retains 49 percent, which has ensured efficiency and profitability.

“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 added.

Both unions vowed to resist any attempt by the federal government to dispose of the nation’s oil assets, warning that such a move could have grave consequences for Nigeria’s economy and future generations.