October 2, 2025-Published by Cyril
The Nigerian National Petroleum Company Limited (NNPCL) has revealed the scale of economic losses caused by the recent three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), even as the union temporarily suspended its action following federal government intervention.
In a letter dated September 29, 2025, and addressed to key regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPCL’s Group Chief Executive Officer, Bashir Ojulari, lamented massive crude, gas, and power disruptions linked to the strike.
According to Ojulari, the industrial action resulted in:
- 283,000 barrels per day of crude oil deferment (about 16% of national output).
- 1.7 billion standard cubic feet of gas are lost daily (30% of marketed gas).
- Over 1,200 megawatts in power generation shortfall (20% of the electricity supply).
He warned that continued disruption could pose a “material threat to national energy security” with ripple effects on crude lifting operations, scheduled maintenance, and export revenues. Ojulari further noted that several international cargoes already suffered demurrage costs as stalled loading operations delayed exports.
Dispute With Dangote Refinery
The strike stemmed from allegations by PENGASSAN that the Dangote Refinery engaged in mass transfers, unjust sackings, and replacement of Nigerian staff with foreign nationals — accusations the company denied, insisting workforce changes were purely operational.
The shutdown of terminals and gas plants during the strike led to a sharp drop in government revenue streams and threatened Nigeria’s energy stability.
Federal Government Intervention
Amid fears of further economic fallout, the Federal Government intervened, brokering a fragile truce between both parties. PENGASSAN announced it was suspending — not calling off — the strike, stressing that its decision was based on respect for government mediation and national interest.
Speaking in Abuja, PENGASSAN President Festus Osifo cautioned that the union remained highly suspicious of Dangote’s commitment to the agreement.
- “We are only suspending, not calling off this strike. If any part of this agreement is broken, we will immediately resume our industrial action without warning,” Osifo declared.
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He dismissed claims that the strike was about union dues, describing such reports as “laughable,” and emphasized that the dispute was rooted in workers’ rights, welfare, and fair pay.
“Not Against Investment”
Osifo also rejected the narrative that the strike could undermine the $20bn Dangote Refinery investment, insisting that PENGASSAN has strengthened major oil companies like Shell, Chevron, and ExxonMobil, which have invested far more in Nigeria.
- “This fight is not about dues. It is about the freedom of association and the welfare of our members. Our members form the backbone of Nigeria’s oil and gas industry, which provides over 90% of the country’s foreign exchange earnings,” he said.
The union insisted it would closely monitor the Dangote Group’s compliance with the truce, warning that any breach would trigger an immediate resumption of industrial action.
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