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Nigeria’s crude oil production dropped by 16 per cent during a three-day strike by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the Nigerian National Petroleum Company Limited (NNPCL) has confirmed.
The industrial action, which took place in late September, was triggered by disputes over workers’ welfare, delayed promotions, and the government’s handling of the recent energy sector reforms.
The strike disrupted operations across several oilfields and export terminals, forcing temporary shutdowns that reduced daily crude output from 1.57 million barrels to 1.32 million barrels per day (bpd).
An NNPCL source who spoke on condition of anonymity said the shortfall amounted to approximately 750,000 barrels in total production losses during the three-day standoff.
“The impact was significant but contained. Production has since recovered to around 1.56 million bpd following a swift resolution with PENGASSAN,” the source explained.
The strike underscored the sensitivity of Nigeria’s oil industry to labour disruptions at a time when the country is struggling to meet its OPEC+ production quota of 1.58 million bpd. It also coincided with renewed efforts to curb crude theft and pipeline vandalism—issues that have long hampered Nigeria’s oil earnings.
PENGASSAN’s president, Festus Osifo, said the union was forced to act after repeated attempts to address grievances through dialogue were ignored.
“Our members have endured prolonged delays in promotion and unresolved welfare concerns. The action was not politically motivated but necessary to draw attention to long-standing issues,” Osifo said.
Although production has returned to pre-strike levels, analysts warn that repeated disruptions could undermine Nigeria’s fiscal stability and investor confidence. Oil still accounts for more than 80 per cent of Nigeria’s foreign exchange revenue, making any dip in output a matter of national concern.
Energy economist Dr Olayemi Adekoya described the episode as a reminder of the need for structural reforms.
“A sustainable industrial framework and improved labour relations are essential if Nigeria is to maintain production above 1.6 million barrels daily,” she said.
The Ministry of Labour has since initiated follow-up meetings with both PENGASSAN and NNPCL to prevent a recurrence.
Officials confirmed that a joint committee has been established to address outstanding issues affecting oil and gas sector workers.
