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NNPCL has reported a significant loss of 16% in the nation’s oil production target.
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National energy security threatened as power generation slumps 20%
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PENGASSAN warns strike could resume despite FG’s intervention
Nigeria has suffered a crippling blow to its energy sector as the Nigerian National Petroleum Company Limited (NNPCL) confirmed that the three-day strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) wiped out 16 per cent of the country’s crude oil production.
In a letter dated September 29, 2025, and addressed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPCL’s Group Chief Executive Officer, Mr. Bashir Ojulari, disclosed that the strike led to the deferment of 283,000 barrels of crude per day and 1.7 billion standard cubic feet of gas daily.
Energy Shockwave
Ojulari warned that the impact extended beyond oil output, cutting 30 per cent of marketed gas and slashing over 1,200 MW of electricity generation, a direct hit to national power supply. He stressed that if the impasse lingers, Nigeria faces systemic dangers that could compromise energy infrastructure, personnel safety, and the broader economy.
“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 continue, the impacts are expected to intensify, posing a material threat to national energy security,” Ojulari said.
Strike Trigger
The strike, sparked by disputes between PENGASSAN and Dangote Refinery management, forced the shutdown of key oil terminals, gas plants, and power facilities. It also stalled ongoing and scheduled lifting activities at export terminals, raising fears of mounting demurrage claims from international crude buyers.
According to NNPCL, deferred crude lifting and monetised gas volumes from joint ventures and production sharing contracts—including 100,000 barrels per day and 1.341 billion standard cubic feet of gas—were postponed, aggravating financial strain on government revenues.
Fragile Truce
Although PENGASSAN announced a temporary suspension of the strike following federal government intervention, the union declared that the truce was fragile. The association warned that unless its grievances were addressed, industrial action would resume, plunging Nigeria’s already strained energy sector deeper into crisis.
Ojulari emphasised the urgency of a sustainable resolution, stressing that delayed maintenance on critical infrastructure — including the USAN turnaround, AKPO GT-3 pigging, hydrogen well testing, compressor servicing, and SEPNU EAP IGE procedures — could worsen output setbacks if disruptions persist.
The strike, though temporarily halted, has exposed Nigeria’s fragile reliance on oil and gas revenue, highlighting the risks of prolonged labour disputes in the energy sector.
