The Nigerian National Petroleum Company Limited (NNPC Ltd) has raised serious alarms over the crippling effects of the recent PENGASSAN strike, revealing that Nigeria’s oil and gas operations suffered significant setbacks due to the three-day industrial action.
In a detailed letter addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, Group Chief Executive Officer Bashir Bayo Ojulari quantified the devastating impact, noting 16 per cent loss in crude oil production, 30 per cent loss in marketed gas, and a 20 per cent shortfall in national power supply.
The letter, titled “Impact Assessment of Ongoing Industrial Action” and dated September 29, 2025, was also shared with the National Security Adviser and the Director-General of the Department of State Services.
The PENGASSAN strike was triggered by a rift between the union and the Dangote Refinery, with the union accusing the refinery of mass transfers and dismissals of union members, alongside alleged replacement of Nigerian staff with foreign nationals—a claim the refinery has consistently denied.
Management insists workforce adjustments were purely operational and not tied to union activities.
PENGASSAN Strike Forces Shutdowns, Choking Revenue Streams
The three-day industrial action paralyzed key oil terminals, gas plants, and power facilities, delaying the production of 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily.
According to Ojulari, these deferments posed a severe threat to national revenue and energy stability.
“Within the first 24 hours of the strike, production deferments stood at approximately 283,000 barrels per day of oil, 1.7 billion standard cubic feet of gas, and over 1,200 megawatts of power generation,” Ojulari stated.
“This equates to around 16 per cent of national oil output, 30 per cent of marketed gas, and 20 per cent of electricity generation.
Should the situation persist, impacts will intensify, posing a material threat to national energy security.”
The industrial action also disrupted at least five critical maintenance activities, including the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance, and SEPNU EAP IGE, further compounding production losses.
Financial Toll: Missed Revenue and Rising Demurrage Risks
Ojulari highlighted that ongoing operations, even by non-unionized staff facilitating crude exports, remained heavily constrained.
He warned that scheduled lifting operations could suffer significant setbacks, increasing the risk of demurrage charges from international buyers.
At the Brass Terminal, for example, the completion of an NNPC cargo was stalled due to incomplete documentation, triggering immediate financial liabilities.
“The financial toll is mounting rapidly, with significant revenue losses projected at current deferment levels,” Ojulari stressed.
“Missed crude lifting and disrupted gas sales are placing NNPC’s cash flow under immediate and compounding pressure.
This industrial action has systemic implications for energy supply, personnel and asset security, and the wider economy.
A sustainable solution is imperative to safeguard national energy security.”
Temporary Suspension of Strike Following Federal Intervention
The PENGASSAN strike was temporarily suspended following high-level mediation by the Federal Government, even as the union cautioned that the truce is provisional.
PENGASSAN President Festus Osifo emphasized that the union’s decision to halt action was rooted in respect for government institutions, not a show of confidence in Dangote.
“We are only suspending, not calling off this strike. If any part of the agreement is broken, we will immediately resume our suspended industrial action,” Osifo warned.
He reiterated that the dispute revolves around workers’ fundamental right to freedom of association and fair compensation.
Union Rejects Misconceptions About Strike Motivation
Osifo dismissed claims that the strike was triggered by check-off dues, describing such narratives as “laughable.”
He clarified that the fight was focused on securing improved welfare packages and aligning workers’ conditions with global oil and gas industry standards.
“The workers joined PENGASSAN to improve their livelihoods, pay, and rights. This action is not about dues but about justice, fair pay, and the freedom of association,” he stated.
He also countered suggestions that the industrial action could undermine Dangote’s investment, arguing that union activities historically support the growth of companies in Nigeria’s oil sector.
“Shell, Chevron, and TotalEnergies have billions invested and thousands of PENGASSAN members.
Dangote’s investment is smaller, and our action does not threaten it. We strengthen, not destroy, industrial operations,” Osifo added.
Ongoing Vigilance and National Energy Concerns
While the PENGASSAN strike is on temporary hold, both the union and the NNPC remain wary of compliance with government-brokered agreements.
Osifo emphasized that any violation by the refinery will trigger an immediate resumption of industrial action.
The dispute highlights the fragile balance between corporate management and labor rights in Nigeria’s energy sector, underscoring the critical role of unions in safeguarding workers’ welfare while maintaining national energy security.
As Nigeria navigates this delicate situation, the temporary suspension of the strike offers a window for constructive dialogue, but the specter of renewed industrial action looms if grievances remain unresolved.
