Nigeria Loses Over 200,000 Barrels Per Day Crude Oil to PENGASSAN Strike — NNPC Boss, Gas Supply and Power Generation Also Hit
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Nigeria’s crude oil production has suffered a massive setback following the recent strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over alleged unlawful dismissals of union members by the Dangote Petroleum Refinery. The nationwide industrial action caused the deferment of more than 200,000 barrels per day (bpd) of crude oil output, disrupted gas supply, and significantly reduced electricity generation across the country.
According to the Nigerian National Petroleum Company Limited (NNPC Ltd), the strike made it “impossible to sustain optimum production,” with losses running into billions of naira within just a few days. The Group Chief Executive Officer of NNPC, Bayo Ojulari, confirming the loses said that: “We actually lost significant production of over 200,000 bpd that was deferred; we also have gas production that was deferred; and we also have power generation that was impacted.”
Industry analystsf estimate that at the height of the disruption, daily crude output plunged by up to 283,000 bpd, representing a shortfall of roughly 16% of national production.
Gas Production and Power Supply Suffer Major Setbacks
The strike action also crippled Nigeria’s natural gas output, as more than 1.7 billion standard cubic feet per day (scf/d) of gas was taken offline during the standoff. This immediately translated into power shortages nationwide.
Data from the Nigerian Independent System Operator (NISO) indicated that available electricity generation dropped from over 4,300 megawatts (MW) to just 3,200 MW, resulting in reduced supply to industries and households.
The NNPC explained that the situation severely affected gas-fed power plants and highlighted Nigeria’s fragile energy infrastructure that depends heavily on steady gas supply.
How the PENGASON Strike Started
The crisis began after the Dangote Petroleum Refinery reportedly dismissed over 800 unionised staff over alleged internal sabotage, a move PENGASSAN described as “unjust and provocative.” The union responded with a nationwide strike, halting critical oil and gas operations in protest.
The Dangote Group, however, defended the dismissals as part of a legitimate restructuring exercise, accusing some workers of sabotage. The federal government, through the Ministry of Labour and Employment, intervened and brokered peace talks that led to the suspension of the strike.
Following negotiations, dismissed employees were reportedly reassigned to other subsidiaries of the Dangote Group without loss of pay.
Economic Impact and National Implications
Energy experts told Abuja Business Reports that the deferment of over 200,000 bpd could cost the nation billions of naira in lost revenue, especially as the affected period coincided with a fragile phase of Nigeria’s oil export recovery.
Export terminals, including Akpo, Brass, and Egina, were forced to delay cargo loadings, while several offshore and onshore facilities temporarily shut down operations. The ripple effect, experts said, was a disruption of supply chains and logistics across Nigeria’s energy sector.
The strike also raised new questions about labour relations in the country’s oil and gas industry, especially as Nigeria seeks to attract fresh investments in energy infrastructure and refinery operations.
“Nigeria Is Greater Than Any Group” — VP Shettima
The Federal Government in its reaction has called for calm and restraint following the industrial dispute between PENGASSAN and Dangote Petroleum Refinery.
Vice President Kashim Shettima, speaking on behalf of the government, condemned the strike action that disrupted crude oil, gas, and power production, stressing that no group or organisation should hold the nation to ransom over internal disagreements.
“Nigeria is greater than PENGASSAN. Nigeria is greater than each and every one of us,” the Vice President declared, urging both parties to embrace dialogue in the national interest.
He described the Dangote Refinery as a critical national asset built with massive local and foreign investment, warning that such strategic infrastructure must not be jeopardised by labour conflicts.
Shettima emphasised that the Federal Government remains committed to protecting the oil and gas sector, maintaining industrial harmony, and promoting investor confidence.
“We must exercise patriotism and restraint in resolving disputes. Our focus should be on sustaining jobs, protecting investments, and safeguarding Nigeria’s economic stability,” he added.
The Federal Government had pledged to establish mechanisms to protect essential energy operations from future industrial disruptions while respecting workers’ rights.
The Dangote Group welcomed the resolution, insisting its actions were lawful and necessary for operational efficiency.
The Way Forward
Analysts warn that without strong industrial relations frameworks and contingency plans, Nigeria’s energy security will remain vulnerable. As NNPC and industry operators move to stabilise production, the focus will shift toward quantifying deferred volumes, restoring gas supplies, and preventing a recurrence.
The recent strike serves as a critical reminder that Nigeria’s economic growth, power stability, and fiscal health are inseparably linked to consistent oil and gas operations — and to peaceful labour relations within the sector.
