Oil Politics, PIA, and the Power Shift We’re Not Talking About

By Njideka Maduka

Journalist



On Tuesday, September 24th, Nigeria’s oil sector found itself in the eye of the storm, the consequences of which will be revealed in the days to come. Oil unions- the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG), led by Festus Osifo and Williams Akporeha respectively, strongly rejected the Federal Government’s alleged plan to sell off 30–35% of its stakes in Joint Venture (JV) oil assets. (FG currently holds between 55% and 60% of such assets through NNPCL.)


They argue this move would:

- Weaken NNPCL financially  

- Put Nigeria’s oil sector in foreign hands  

- Undermine national budget contributions  

- Strip the Petroleum Industry Act (PIA) of its stability  


They’re also resisting proposed amendments to the PIA, warning that frequent changes will scare away investors and destabilize the sector.


But here’s something I’ve been reflecting on.


When the PIA was signed under late President Muhammadu Buhari, many Nigerians especially from the Niger Delta criticized the 30% frontier exploration fund, claiming it was a ploy to use national oil wealth to search for oil in the North, particularly since only 3% was reserved for host communities. At the time, those concerns were dismissed.


Now, under President Bola Tinubu, a southerner, the same financial commitments are being reassessed, not for regional reasons, but for economic sustainability. Last month, President Tinubu issued a directive to reassess NNPCL’s 30% management fee and 30% frontier exploration deduction under the PIA. He charged the Economic Management Team, led by Finance Minister Wale Edun, to optimize government savings, streamline deductions from the Federation Account, and enhance fiscal discipline in a time of global financial strain.


Ironically, this shift may now validate the concerns of those who opposed the original PIA structure.


So what changed?

- Economic strain: Nigeria needs every naira it can save. Whether these savings are judiciously used is another matter altogether.  

- The political lens has shifted: What was once dismissed as regional favouritism is now being re-evaluated as fiscal reform.  


Labour unions aren’t seeing it that way. Their resistance is rooted in national control and sector stability.  Personally, I wonder how much of it is driven by fear of job loss. 


The conversation is evolving, and let’s see if the Federal Government shifts ground. And maybe, just maybe bills will need to be thoroughly reviewed before passage.


This isn’t just about oil. It’s about how policy, politics, and perception collide in Nigeria. And it’s a reminder that thoroughness, fiscal discipline, regional equity, and national interest must go hand in hand in any national discourse.


We await what follows.


#Nigeria #PIA #OilPolitics #PENGASSAN #NUPENG #NNPCL #ResourceControl #NationalUnity #OilAndGas #PresidentTinubu #FiscalDiscipline #NjidekaMaduka #NjidekaMadukaOnAir





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