By Obinna Uballa
The Nigerian National Petroleum Company Limited (NNPCL) has revealed that the recent three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) caused 16 percent of national oil production, 30 percent of marketed gas, and 20 percent of power supply to be lost, putting severe pressure on the country’s energy infrastructure and revenue streams.
In a letter to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian Upstream Petroleum Regulatory Authority (NMDPRA) titled “Impact Assessment of ongoing industrial action”, NNPCL Group Chief Executive Officer Bashir Bayo Ojulari explained that the industrial action, which stemmed from a dispute between PENGASSAN and Dangote Refinery, forced the shutdown of major oil terminals, gas plants, and power facilities.
He said the disruption deferred 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, translating to substantial financial losses for the national oil company.
Ojulari noted in the latter dated 29 September 2025, that the impact extended to scheduled maintenance across critical assets, including the USAN turnaround, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance, and SEPNU EAP IGE, which are now delayed. He warned that ongoing and planned lifting operations could suffer further setbacks, triggering potential demurrage claims by international buyers.
Ojulari concluded that the strike posed systemic risks to energy security, national revenue, and economic stability, calling for a sustainable solution to prevent recurring disruptions to the country’s energy infrastructure.
The strike was suspended on Wednesday following Federal Government intervention, though PENGASSAN stressed that the truce was temporary and could be reinstated if outstanding issues were not resolved.
Speaking in Abuja on Wednesday, PENGASSAN President Festus Osifo said, “We are only suspending, not calling off the strike. Any breach of the agreement by Dangote, and we will immediately resume our industrial action.”
The union’s dispute with Dangote Refinery arose from allegations of mass transfers, dismissals, and replacement of Nigerian workers with foreign nationals, claims the refinery denies, insisting that workforce reorganisation was driven solely by operational requirements.
Osifo emphasised that the strike was about workers’ freedom of association and fair pay, not union dues, and dismissed suggestions that the action aimed to undermine Dangote’s investment. “Our members form the backbone of Nigeria’s oil and gas industry, which provides over 90% of foreign exchange and funds national allocations. This strike is about securing their welfare, not destroying investments,” he said.
