Nigeria’s crude oil and gas production slumped by 16 percent during a nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the Nigerian National Petroleum Company Limited (NNPCL) disclosed on Wednesday.
The industrial action, which began on September 28 and was suspended on October 1 after government-brokered talks with Dangote Refinery, was triggered by the dismissal of some employees at the 650,000 barrels-per-day facility.
In a letter to regulators, NNPCL’s Group Chief Executive Officer, Bayo Ojulari, said the strike caused immediate production deferments and significant revenue losses due to missed crude liftings and reduced gas sales.
“Within the first 24 hours, we recorded about 283,000 barrels per day of deferred oil production, 1.7 billion standard cubic feet per day of gas, and an impact of over 1,200 megawatts in power generation,” Ojulari stated, noting this represented 16% of national crude output, 30% of marketed gas, and 20% of electricity generation.
NNPCL described the disruption as a “material threat to national energy security” and warned that extended stoppages could have had systemic effects on supply, asset security, and the wider economy.
Key Facilities Affected
The strike forced the shutdown of major facilities, including Shell’s Bonga floating production unit and the Oben gas plant. It also delayed the restart of Nigeria LNG’s Trains 5 and 6, while cargo loadings at export terminals such as Akpo, Brass, and Egina were held back, raising the risk of demurrage costs. Several maintenance and project schedules were also pushed back.
Although NNPCL activated business continuity plans—deploying non-union staff to sustain operations where possible—the company admitted that the strike disrupted supply chains beyond the Dangote Refinery.
The strike was declared after PENGASSAN’s National Executive Council ordered a shutdown in protest against staff dismissals at Dangote Refinery. The union accused the company of unfair labour practices, while the Dangote Group insisted the restructuring affected only a small number of workers and was necessary to safeguard operations and prevent sabotage.
The government later intervened, securing an agreement that led to the suspension of the strike and an easing of immediate supply concerns.
