FG Denies Reports of Final Decision on NNPCL Crude Oil Sale as Depot Owners Hike Petrol Price

• The Federal Government has denied reports suggesting a final decision on the forward crude oil sale by NNPCL, stressing that such claims are baseless.
• Meanwhile, the government facilitated a resolution between Sterling Oil Exploration & Energy Production Company (SEEPCO) and PENGASSAN
• PENGASSAN had previously threatened to disrupt operations over claims of discrimination against Nigerians in favour of Indian nationals

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Federal Government has reaffirmed that it has not made a final decision about the forward crude oil sale by NNPCL and emphasised that any remarks implying such an endeavour are baseless.

Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, Abuja, signed the statement, which was provided to Daily Champion.

According to the statement, it reads:

"The Federal Government of Nigeria is aware of recent media reports concerning a potential forward sale of crude oil involving the Nigerian National Petroleum Company Limited (NNPC Ltd)."

"While market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the Government, and commentary suggesting the collapse of any such initiative is unfounded.

“The government is still committed to implementing a variety of creative, open, and cost-effective financing techniques to maximise Nigeria's oil reserves, enhance external liquidity, and fortify macroeconomic stability."

Meanwhile, Legit.ng reported that the federal government’s intervention has helped broker a truce between the Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

It has been confirmed that both parties have resolved all the issues that threatened to disrupt the entire upstream operations in Nigeria’s petroleum industry.

Sources disclosed that there were a series of meetings and collaborative engagements between the groups, as facilitated by the government, which eventually led to a fresh agreement on June 4, 2025.

PENGASSAN threatens national strike over discrimination

In March 2025, PENGASSAN threatened to disrupt upstream operations across Nigeria if the anti-labour issues were not addressed.

The group had raised its concerns about anti-labour practices ongoing in Sterling Oil Exploration and Energy Production Company (SEEPCO) in a protest at the company’s head office last week.

It claimed that the company was discriminating against Nigerians in favour of Indian nationals and violating the NOGICD Act.

Speaking at a press conference in Abuja, the PENGASSAN President, Festus Osifo, asked the government to step into the matter and force SEEPCO to remove its 10,699 Indian expatriates working across 15 locations and employ qualified Nigerians for the positions.

He threatened that the union would withdraw its members and disrupt every upstream operation in Nigeria.

In the following weeks, the Nigerian Content Development and Monitoring Board (NCDMB) vowed to take action against the company for repeatedly violating local content directives.

Depot owners hike petrol prices

Legit.ng reported that the Nigerian petroleum market may see a slight increase in depot prices soon due to a hike in international oil prices and a domestic distribution shutdown due to the long holiday.

Reports say that from Friday, June 6, to Monday, June 9, 2025, key petrol depots nationwide halted sales to observe the national public holiday, slowing down supply to retail stations.

As of Friday, June 6, 2025, Brent crude traded at $66.46 per barrel, rising to $67.91 by Tuesday, June 10, 2025, showing the rising global demand expectations and tighter output predictions due to Canadian wildfires and the Middle East crisis.

Source: Legit.ng