The Nigerian National Petroleum Company Limited (NNPCL) has reported significant losses in crude and gas production due to a three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
In a letter to regulatory authorities, Group Chief Executive Officer Bashir Ojulari outlined the impact of the industrial action, noting a 16 percent reduction in oil production and a 30 percent loss in marketed gas. The strike also contributed to a 20 percent shortfall in the nation’s power supply.
The letter, dated September 29, 2025, indicated that the strike led to the shutdown of major oil terminals, gas plants, and power facilities, resulting in the deferment of 283,000 barrels of crude oil and 1.7 billion standard cubic feet of gas daily.
Despite the suspension of the strike following federal government intervention, PENGASSAN cautioned that the agreement is temporary and could be revisited if unresolved issues persist. The conflict primarily arose from allegations against the Dangote Refinery regarding mass transfers and dismissals of union members.
Ojulari projected that if the situation continues, the impacts would intensify, posing a threat to national energy security. He detailed that within the first 24 hours of the strike, production deferments reached approximately 283,000 barrels per day and over 1,200 megawatts of power generation, equating to significant national output losses.
While some non-unionized staff continued to facilitate crude exports, operations remained heavily constrained. The ongoing disruptions have raised concerns about financial setbacks and potential demurrage claims from international buyers.
PENGASSAN’s leadership emphasized that their decision to suspend the strike was made in respect for federal institutions and mediation efforts, but they remain vigilant about any breaches of the agreement. They reiterated that the dispute centers on workers’ rights to freedom of association and fair pay, dismissing claims that the strike was motivated by check-off dues as unfounded.
The union’s actions reflect a commitment to improving working conditions and rights for its members, underscoring the importance of addressing these issues to ensure stability in Nigeria’s energy sector.
