PENGASSAN Strike Cuts Nigeria Oil Output 16%, Triggers Revenue Losses

A nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) caused Nigeria's crude oil production to drop by about 283,000 barrels per day, roughly 16% of the national output, alongside a 1.7 billion standard cubic feet per day decline in gas output and a loss of over 1,200 megawatts in power generation. The strike, which began on September 28, 2025, disrupted key facilities including Shell’s Bonga floating production unit, the Oben gas plant, and Nigeria LNG’s Train 5 and 6, delaying cargo loadings at major export terminals and causing significant revenue losses and cashflow pressures for the Nigerian National Petroleum Company Limited (NNPCL). NNPCL CEO Bayo Ojulari warned that these disruptions pose systemic risks to Nigeria’s energy security, asset safety, and wider economy if prolonged, describing the situation as a material threat to national energy security. The strike stemmed from the dismissal of about 800 unionized workers at the Dangote Refinery, Africa’s largest crude processing plant, and although the strike has been suspended following government intervention, PENGASSAN maintains that grievances remain unresolved. NNPCL activated business continuity plans by deploying non-union staff to mitigate the impact, but the incident exposed long-term vulnerabilities in Nigeria’s energy infrastructure. The ongoing dispute highlights the critical balance between labor relations and energy sector stability in Nigeria.