The Nigerian National Petroleum Company Limited (NNPC Ltd.) has revealed massive production and revenue losses from the three-day strike staged by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), even as the union agreed to suspend its industrial action against the Dangote Refinery after federal intervention.
In a letter to energy regulators and security agencies, NNPC’s Group Chief Executive Officer, Bashir Ojulari, disclosed that the strike triggered an immediate 16% drop in oil production, 30% in marketed gas, and a 20% decline in electricity supply. Within the first 24 hours, the country lost an estimated 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas, stalling power generation by over 1,200MW.
Ojulari warned that the disruption had “systemic risks” for national energy security and would worsen if unresolved, noting that crude liftings, maintenance schedules, and exports already faced delays and demurrage penalties.
The strike, which began September 28, was sparked by allegations that the Dangote Refinery unfairly dismissed union members and replaced some Nigerian staff with foreigners. The refinery denied the claims, insisting workforce changes were based on operational needs.
Federal Government intervention halted the action temporarily, but PENGASSAN President Festus Osifo stressed the truce was not permanent.
“We are only suspending, not calling off this strike. If Dangote fails to keep to the agreement, we will resume immediately without warning,” Osifo declared at a press briefing in Abuja.
He dismissed claims that the dispute was linked to union dues, stressing it was about the freedom of association and fair welfare for workers.
Osifo also rejected suggestions that the union was sabotaging Dangote’s $20bn investment, citing that global oil giants like Shell, Chevron, and TotalEnergies have thrived despite hosting thousands of PENGASSAN members.
While the government managed to avert an escalation, both NNPC and PENGASSAN agree that the underlying dispute remains unresolved — raising fresh concerns about the stability of Nigeria’s oil and gas sector.
