The Nigerian National Petroleum Company Limited (NNPC Ltd) has revealed that the recent three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) cost the nation dearly in crude oil, gas output, and power supply. Group Chief Executive Officer, Bashir Bayo Ojulari, disclosed that the industrial action triggered a 16 percent drop in oil production, 30 percent in marketed gas, and 20 percent in electricity generation—further straining an already fragile energy system. In a letter addressed to regulators and security agencies, Ojulari warned that prolonged disruption posed a direct threat to Nigeria’s energy security.
The strike, which was sparked by a dispute between PENGASSAN and the Dangote Petroleum Refinery, forced the shutdown of major oil terminals and gas facilities. According to Ojulari, the nation lost 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily within the first 24 hours. He added that five critical maintenance operations, including turnaround maintenance at key fields, were delayed—raising fears of more long-term setbacks. With crude exports stalled at several terminals, the company is also facing demurrage charges from international buyers.
PENGASSAN suspended the strike on Wednesday following federal government intervention but stressed that the truce was temporary. The union accused the Dangote Refinery of mass layoffs, unfair transfers, and replacing Nigerian workers with foreign nationals—claims strongly denied by the refinery’s management. The company insisted that its workforce restructuring was purely operational, not union-related. Despite government-brokered talks, union leaders remain skeptical that Dangote will honor the agreement.
Union president Festus Osifo told reporters in Abuja that the decision to suspend the strike was made “out of respect for government institutions” rather than trust in Dangote. He emphasized that workers were not fighting for dues but for fundamental rights, fair pay, and better welfare. “If any part of this agreement is broken, we will not give any warning. We will immediately resume industrial action,” Osifo said, underscoring the fragile nature of the peace deal.
Energy analysts warn that the strike highlights the delicate balance in Nigeria’s oil and gas sector, where disputes can quickly spiral into nationwide economic shocks. With oil accounting for over 90 percent of foreign exchange earnings, the losses recorded within just three days show how industrial actions threaten not just corporate balance sheets but also public power supply and national revenues. For now, Nigerians are left watching closely to see if the fragile truce between Dangote and PENGASSAN holds—or if another wave of disruptions could plunge the economy deeper into uncertainty.
source: punch