Nigeria’s state oil company, NNPC, has announced it will sell stakes in selected oil and gas assets, triggering opposition from major unions that warned the move could reduce government revenue and threaten workers’ benefits.
The company said some of the assets are directly held by NNPC, while others are joint ventures with international firms including Shell, Chevron, Eni and TotalEnergies. NNPC did not disclose the expected value of the stakes on offer or the size of individual holdings.
A formal bidding process has been launched, with registration for interested parties open until Jan. 10, 2026. The process includes pre-qualification checks on technical and financial capacity, document reviews, negotiations, and regulatory approvals. Shortlisted bidders will gain access to a secure virtual data room containing detailed asset information.
The divestment plan is part of NNPC’s broader strategy to streamline its portfolio and attract fresh investment, particularly as Nigeria struggles to increase crude production and mobilise liquidity amid economic pressures. The company aims to reduce at least 25 percent of certain interests, either through direct sales or by cutting joint venture stakes.
Union opposition re-emerges
The announcement has reignited tensions with Nigeria’s largest oil unions, PENGASSAN and NUPENG, which previously opposed similar proposals in September. The unions warned that reducing the state’s share in joint ventures from around 55–60 percent to 30–35 percent could compromise public revenue, weaken NNPC’s finances, and put workers’ pay and benefits at risk.
Union leaders also raised concerns over potential amendments to the 2021 Petroleum Industry Act, which they said could alter the management of NNPC assets and undermine investor confidence. They argued that rushed legal changes or transferring management to regulators could push the company toward financial instability.
Citing prior divestments by companies such as Eni, ExxonMobil and Shell, some of which were later acquired by local firms, the unions said reducing state participation too quickly carries significant economic and operational risks.
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They called on President Bola Tinubu to intervene, urging a careful approach to safeguard Nigeria’s economic and social interests while maintaining investor confidence in the oil sector.
NNPC said the divestment programme is intended to open up onshore marginal fields abandoned by international operators, attract investment, and boost production, but unions have stressed that any move must balance financial gains with long-term stability and protection of workers’ rights.
The outcome of the bidding process and the government’s response to union concerns will be closely watched, as Nigeria seeks to revitalise its oil sector amid fluctuating global prices and ongoing domestic economic challenges.
