The Nigerian National Petroleum Company Limited (NNPCL) has raised the alarm over the heavy toll of the three-day nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), warning of mounting risks to the country’s energy security and economy.
In a letter addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Upstream Petroleum Regulatory Commission, the National Security Adviser, and the Director General of the Department of State Services, the Group Chief Executive Officer, Bashir Ojulari, lamented that the industrial action triggered severe losses across oil, gas, and power supply chains.
Ojulari disclosed that the strike, which began on September 28, 2025, forced the deferment of about 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, amounting to a 16 per cent drop in national oil production, 30 per cent decline in marketed gas, and 20 per cent shortfall in power supply.
“As of September 29, within the first 24 hours of the strike, production deferments stood at approximately 283 kbpd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impact. Should the situation continue, the impacts are expected to intensify, posing a material threat to national energy security,” the GCEO warned.
The standoff, sparked by a rift between PENGASSAN and the Dangote Petroleum Refinery, resulted in the shutdown of major oil terminals, gas plants, and power facilities nationwide. The union accused the refinery of unfair labour practices, including mass sackings, forced transfers of union members, and the replacement of Nigerians with foreign nationals—allegations the company denied, insisting its workforce reorganisation was purely operational.
The disruption also stalled critical maintenance activities and crude lifting operations, with Ojulari warning of looming demurrage claims from international buyers. “Missed crude lifting and disrupted gas sales are placing our cash flow under immediate and compounding pressure,” he stated.
Though the strike has been temporarily suspended following Federal Government intervention, PENGASSAN insisted the truce remains fragile. At a briefing in Abuja, the union’s President, Festus Osifo, stressed that the industrial action was suspended “out of respect for government institutions” but not called off, adding that members would resume immediately if Dangote reneged on agreed terms.
“This fight is not about check-off dues. It is about the freedom of association and the welfare of our members. Our patience should not be mistaken for weakness,” Osifo declared.
The dispute underscores growing tensions in Nigeria’s energy sector at a time when oil and gas remain the nation’s key revenue sources. Industry observers warn that unless a sustainable resolution is reached, the recurring face-off could destabilise energy supply and worsen the country’s economic outlook.
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