The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has disclosed that a brief nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has led to a significant drop in oil and gas production in Nigeria.
According to the NNPCL, crude oil output recorded a reduction of about 283,000 barrels per day, roughly 16% of national output, and a reduction of 1.7 billion standard cubic feet per day in gas output, while knocking out more than 1,200 megawatts of power generation
Group Chief Executive Officer of the NNPCL, Bayo Ojulari, in a letter dated September 29, 2025, informed regulators that the industrial action led to significant production deferments and projected revenue losses from missed crude liftings and reduced gas sales.
“Significant revenue losses are projected at current deferment levels, driven by missed liftings and gas sales. Cashflow pressures are immediate and compounding.
“NNPC continued engagement with operating partners and key stakeholders to enhance security and emergency protocols, activation of BCP with non-union staff taking over operations, where practicable,” Ojulari said.
The NNPCL boss added that the industrial action “has impacts that extend beyond the Dangote Refinery”.
According to him, the disruptions pose systemic risks to energy supply, personnel and asset security and the wider economy, adding that it poses “material threat to national energy security” if prolonged.
“Within the first 24 hours of the strike, production deferments stood at approximately 283 kbopd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impaction.
“This equates to around 16per cent of national oil output, 30per cent of marketed gas, and 20% of electricity generation,” Ojulari said.
Key facilities shuttered during the action included the Shell-operated Bonga floating production unit and the Oben gas plant, while the restart of Nigeria LNG’s Train 5 and 6 was delayed, and midstream networks were disrupted.
Cargo loadings for Dangote refinery as well as at export terminals such as Akpo, Brass, and Egina were also delayed, risking demurrage costs, and at least five critical maintenance and project timelines slipped, his report said.
However, the NNPC boss added that it activated business continuity plans and deployed non-union staff to sustain operations during the stoppage but warned of “significant revenue losses” from missed liftings and gas sales.
The strike, which began on September 28, was triggered by the dismissal of about 800 unionised staff at the Dangote Refinery, Africa’s largest crude processing facility with a capacity of 650,000 barrels per day.
PENGASSAN has since suspended the strike after talks brokered by the government, easing immediate supply risks, though NNPC cautioned that systemic vulnerabilities remained.
Source: Reuters
