By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that the recent nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) caused a sharp decline in Nigeria’s oil and gas production, triggering widespread economic and energy ripple effects.
According to NNPCL, the industrial action led to an immediate reduction of about 283,000 barrels of crude oil per day—roughly 16% of national output—alongside a drop of 1.7 billion standard cubic feet per day in gas production, which in turn disrupted over 1,200 megawatts of power generation.
In a letter dated September 29, 2025, addressed to regulators, NNPCL Group Chief Executive Officer Bayo Ojulari warned that the disruptions had caused “significant production deferments” and projected heavy revenue losses from missed crude liftings and reduced gas sales. “Significant revenue losses are projected at current deferment levels, driven by missed liftings and gas sales. Cashflow pressures are immediate and compounding,” he stated.
Ojulari added that while NNPCL had activated business continuity plans and deployed non-union staff to maintain operations where possible, the strike’s impact extended beyond the Dangote Refinery and posed “systemic risks” to the wider economy, personnel safety, and national energy security. “Within the first 24 hours of the strike, production deferments stood at approximately 283 kbopd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impaction,” he explained.
NNPCL said it continues to engage operating partners and stakeholders to strengthen security and emergency response protocols, warning that prolonged industrial action could escalate risks to Nigeria’s overall energy stability.
