PENGASSAN Strike Slashes Nigeria’s Oil Output by 16%, Causes Major Revenue Losses – NNPCL
Nigeria’s energy sector suffered a significant setback as the Nigerian National Petroleum Company Limited (NNPCL) confirmed that the recent nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) disrupted oil production, gas supply, and electricity generation.
In a letter dated September 29, 2025, NNPCL Group Chief Executive Officer, Bayo Ojulari, revealed that crude oil output dropped by about 283,000 barrels per day, representing roughly 16% of the nation’s total production. Gas output also fell by 1.7 billion standard cubic feet per day, leading to a loss of more than 1,200 megawatts of power generation capacity.
Ojulari described the impact as “significant revenue losses,” citing missed crude liftings, reduced gas sales, and growing cashflow pressure on the company. He warned that the industrial action, which began on September 28, poses systemic risks to Nigeria’s energy security, asset safety, and the broader economy if prolonged.
Within the first 24 hours of the strike, key operations such as Shell’s Bonga floating production unit and the Oben gas plant were forced to shut down. Restart activities at Nigeria LNG’s Train 5 and 6 were delayed, while midstream networks, export terminals, and cargo loadings for the Dangote Refinery were disrupted. The disruptions, Ojulari noted, also triggered potential demurrage costs and project delays affecting at least five critical operations.
The strike stemmed from the dismissal of about 800 unionised workers at the Dangote Refinery, Africa’s largest crude processing facility with a capacity of 650,000 barrels per day.
Although NNPCL activated its business continuity plans and deployed non-union personnel to cushion the effects, Ojulari admitted that the repercussions extended far beyond the refinery, exposing long-term vulnerabilities in Nigeria’s energy framework.
Following government-mediated negotiations, PENGASSAN has suspended the strike, offering temporary relief to supply chains. However, NNPCL cautioned that the episode exposed material threats to the nation’s energy system that could reemerge unless labor relations in the industry are more effectively managed.
