NNPCL Raises Alarm Over Huge Oil and Gas Losses From PENGASSAN Strike

The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that the recent three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) resulted in massive crude and gas production losses, as well as a drop in power supply across the country.

In a letter addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, the Group Chief Executive Officer of NNPCL, Bashir Ojulari, revealed that the suspended industrial action led to a 16 per cent reduction in oil output, a 30 per cent decline in marketed gas and a 20 per cent shortfall in electricity supply.

The correspondence, dated September 29, 2025 and titled Impact Assessment of Ongoing Industrial Action, was also copied to the National Security Adviser and the Director General of the Department of State Services.

According to Ojulari, the strike forced the shutdown of oil terminals, gas plants, and power facilities, deferring 283,000 barrels of crude oil and 1.7 billion standard cubic feet of gas per day. This disruption significantly cut into Nigeria’s vital oil and gas revenues.

Although the strike has since been suspended following Federal Government intervention, Ojulari warned that the impact would linger. He stressed that the losses extended beyond Dangote Refinery, citing systemic risks to national energy security, personnel safety, and economic stability.

Speaking with newsmen in Abuja, PENGASSAN President Festus Osifo explained that the union suspended, rather than called off, the strike out of respect for government mediation efforts. He accused the Dangote Refinery of mass transfers, unfair sackings and replacing Nigerian staff with expatriates—allegations the company denied.

Osifo maintained that the dispute was not about check-off dues but about the fundamental rights of workers to unionise and secure fair welfare packages. He warned that the union would not hesitate to resume industrial action if Dangote failed to honour agreements reached under government supervision.

Industry data revealed that the gas sector alone recorded an average daily loss of 1.7 billion standard cubic feet during the strike, equivalent to about 1.76 million MMBtu. Critical maintenance projects were also stalled, increasing the risk of further deferments and financial losses.

Ojulari concluded that missed crude liftings and disrupted gas sales had placed NNPCL’s cash flow under “immediate and compounding pressure” with mounting risks of demurrage claims from international buyers.

The Federal Government has vowed to ensure full compliance with the truce, stressing that any relapse could have severe consequences for Nigeria’s energy stability and economy.