NNPC, NUPRC, NMDPRA shut as PENGASSAN strike begins
Nigeria’s oil and gas industry has been thrown into disarray as operations at three of its most critical agencies — the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) — ground to a halt on Monday.
This followed the decision of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to commence a nationwide strike.
The industrial action, which began shortly after midnight, is in response to the alleged dismissal of more than 800 workers at the Dangote Petroleum Refinery.
According to the union, the sackings violated Nigerian labour laws and International Labour Organisation (ILO) conventions, especially as some of the workers were reportedly replaced with expatriates.
How the strike started
Our correspondent observed that at the NUPRC headquarters in Abuja, the gates were firmly locked, leaving employees stranded outside.
Security operatives confirmed that only those enforcing the strike directive were allowed access.
The same situation played out at the NMDPRA offices in Abuja’s Central Business District, where workers fully complied with PENGASSAN’s orders.
Confirming the level of compliance, Tony Iziogba, PENGASSAN’s chairman at NMDPRA, told our correspondent that the directive had been met with “100 per cent compliance.”
He stressed that members across NNPC, NUPRC, and other key agencies had all downed tools in solidarity.
The decision to shut down operations at NNPC, NUPRC, and NMDPRA highlights the seriousness of the crisis.
With NNPC acting as Nigeria’s sole petrol importer, NUPRC overseeing crude oil production, and NMDPRA regulating downstream distribution, the strike could spark significant disruptions in the coming days.
At the heart of the strike is PENGASSAN’s claim that Dangote Refinery unjustly terminated about 800 workers for joining the union.
In a strongly worded resolution signed by its General Secretary, Lumumba Okugbawa, the union accused the refinery of anti-labour practices, insisting that such actions undermine both Nigerian labour laws and ILO conventions.
“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the union declared.
It further directed International Oil Companies (IOCs) to suspend gas production and supply to the facility, escalating the standoff.
This directive raises concerns about potential fuel shortages, as PENGASSAN’s move could restrict the supply of crude and gas to the refinery while also affecting nationwide distribution.
Oil marketers have already warned that fuel prices could climb if the strike persists.
Wider implications for Nigeria’s economy
The strike comes at a time when Nigeria is already grappling with inflationary pressure, volatile foreign exchange rates, and an ongoing struggle to stabilise petrol supply.
The fact that NNPC, NUPRC, NMDPRA shut as PENGASSAN begins strike underscores the fragility of Nigeria’s energy sector.
Experts warn that if the standoff continues, the country could face not only fuel scarcity but also disruptions to electricity supply, since gas is a key input for power generation.
“Once you choke crude oil and gas supplies, the ripple effects will be immediate across fuel, electricity, and industrial production,” an analyst noted.
The strike also poses reputational risks for Nigeria. Investors in the energy sector are likely to see it as another sign of regulatory instability, further complicating efforts to attract foreign capital into oil, gas, and renewables.
Government’s next move
The Federal Government has called an emergency meeting through the Minister of Labour to address the crisis.
Negotiations are expected to focus on resolving the dispute between Dangote Refinery and the union, as well as ensuring that vital national energy infrastructure resumes operations.
PENGASSAN, however, has shown no signs of backing down. In addition to shutting down agencies, it instructed members in field operations to down tools from Sunday and to participate in a continuous prayer vigil.
This hardline stance suggests that only a significant concession from either the refinery or the government may bring the strike to an end.
A test of industrial relations
Labour experts argue that the current impasse offers Nigeria an opportunity to strengthen its industrial relations framework.
With the oil and gas industry serving as the backbone of the economy, disputes that threaten to paralyse the sector must be managed swiftly and effectively.
For now, the fact remains that NNPC, NUPRC, NMDPRA shut as PENGASSAN begins strike has created widespread uncertainty. Whether the country faces prolonged fuel shortages and further economic strain will depend on how quickly the parties involved can reach a compromise.
The showdown between PENGASSAN and Dangote Refinery has snowballed into a national crisis, shutting down NNPC, NUPRC, and NMDPRA in one sweep.
As Nigerians brace for potential fuel scarcity and economic shocks, the government faces mounting pressure to mediate effectively.
Until then, the reality is stark: the strike has paralyzed vital energy institutions, underscoring just how much influence PENGASSAN wields in Nigeria’s oil and gas industry.
If urgent solutions are not found, the crisis could deepen, with long-lasting consequences for the economy and ordinary citizens.
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