Unbundling of NNPC not acceptable – TUC

The Trade Union Congress of Nigeria (TUC) is totally perplexed and bemused by the reported pronouncement by the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, effectively unbundling the Nigerian National Petroleum Corporation (NNPC) into 7 divisions and 20 subsidiaries.

Dr Ibe Kachikwu

The Congress considers the step a clear breach of due and proper process, tainted with illegality and anchored on gross impunity. For one, it is ultra vires the NNPC Act of 1977 under which the Corporation was created. We know for sure that neither the purported unbundling nor any other fundamental restructuring of the Corporation can be lawful and valid without prior appropriate repeal or amendment of the Act. We stand opposed to that illegality and call on President Buhari to discountenance and reverse it.

We are also pricked that the Minister omitted to consult and dialogue with relevant stakeholders, including the TUC, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the National Union of Petroleum and Natural Gas Workers (NUPENG), the oil companies, etc. before taking such a decision which has potential for far-reaching adverse effects. Such astounding impunity! What then would be the fate of the workers of NNPC? What is to be done about pensions, employee transfers, and other matters that are of interest to the workers? The Minister claimed that there will be no job loss, but how guaranteed is that claim when he did not even bother to engage the labour unions and the operators before taking his decision?

What about the massive financial burden of running so many divisions and subsidiaries? If NNPC as one unit cost so much to administer, is the nation in the best circumstance to afford the multiple increase in expenditure that maintaining the consequent new bureaucracies would entail?

Another issue that the Minister obviously did not give proper reckoning to is the likely negative effects that the unbundling of NNPC would have on inflow of foreign investments to the nation’s oil and gas industry. We insist on immediate retraction of that decision in order that such investments be not discouraged.

In view of the foregoing, the Congress is pleased to note that its affiliate union in the oil and gas sector, PENGASSAN, has already registered its opposition to the Minister’s unsavoury statement and promptly commenced an industrial action against the unbundling of NNPC. That is as it should be, and we wish to make it emphatically clear that the Congress lends its full weight and support to PENGASSAN on the matter. We are watching with keen interest and shall not hesitate to resort to and apply all lawful measures – including calling all other affiliate unions of the Congress to join PENGASSAN in an all-out nationwide strike and any other industrial action – if the Minister fails, omits or neglects to revert the NNPC to its status-quo ante. And we insist that he does so immediately.

Comrade Bobboi Bala Kaigama

President, TUC

Comrade (Barr.) Simeso Amachree

Ag. Secretary General, TUC