NNPC Counts Losses as PENGASSAN Suspends Strike

The Nigerian National Petroleum Company Limited (NNPC Ltd) has disclosed that it recorded significant financial and operational setbacks during the brief nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), even as the union announced a suspension of its industrial action. The strike, which was called off after marathon negotiations with the federal government, had threatened to paralyze Nigeria’s oil and gas sector, prompting concerns over fuel scarcity and revenue shortfalls.

PENGASSAN had embarked on the strike to protest unresolved issues relating to workers’ welfare, job security, and the enforcement of collective bargaining agreements across oil companies. The union also raised concerns about alleged unfair labour practices within some international oil firms operating in Nigeria. The industrial action, which began earlier in the week, quickly led to disruptions at key production sites, refineries, and export terminals, sparking fears of a prolonged shutdown in oil supply.

According to NNPC, the stoppage of operations during the strike led to an immediate fall in crude oil output, with some export programs temporarily suspended. Officials said the company lost several million dollars in revenue within days, underscoring the vulnerability of Nigeria’s economy to industrial actions in the oil sector. “The disruptions have been costly, not only in terms of direct revenue but also in reputational terms as international buyers look for reliability in supply,” one senior NNPC executive revealed.

The government moved swiftly to broker peace, with representatives from the Ministry of Labour and Employment, the Ministry of Petroleum Resources, and other key agencies engaging PENGASSAN leaders in negotiations. After two days of intense dialogue, the union agreed to suspend the strike following assurances that their grievances would be addressed within an agreed timeframe. The truce came as a relief to Nigerians who had begun to experience long queues at filling stations in major cities due to fears of supply shortages.

In a statement announcing the suspension, PENGASSAN said it was satisfied with the commitments made by the federal government and relevant stakeholders, but warned that it would not hesitate to resume action if promises were not kept. “Our decision to suspend this strike is in the interest of the nation and the economy. However, we expect tangible progress on all the issues raised, particularly on the welfare of our members and respect for labour laws,” the union stated.

The oil sector strike drew reactions from across the country, with labour unions in other industries expressing solidarity with PENGASSAN. Civil society groups also weighed in, urging the government to address recurring disputes in the petroleum industry to avoid disruptions that hurt the wider economy. Nigeria relies on crude oil exports for more than 80 percent of its foreign exchange earnings, making any shutdown in production or export a major fiscal threat.

Economists noted that the strike highlighted the fragility of Nigeria’s economic base. Despite efforts to diversify revenue sources, oil remains the country’s mainstay, meaning that disruptions in the sector quickly ripple through public finances, foreign reserves, and energy supply chains. They argued that the situation underscored the need for proactive engagement with unions and structural reforms in the oil and gas industry to ensure greater stability.

Meanwhile, fuel marketers and depot owners confirmed that the strike created disruptions in the supply chain, with some depots forced to halt loading operations. Although the strike was short-lived, some stations in Lagos, Abuja, and Port Harcourt reported temporary shortages, leading to panic buying by motorists. Industry players stressed that while supply is now expected to normalize, it may take a few days for distribution to stabilize nationwide.

For NNPC, the strike added to its already complex challenges. The company is grappling with declining investment in upstream operations, foreign exchange shortages affecting product imports, and mounting public pressure to stabilize fuel supply amid price volatility. The losses incurred during the PENGASSAN strike, though not yet officially quantified, will add to financial strains, especially as Nigeria seeks to meet its OPEC production quota of 1.8 million barrels per day.

Labour experts observed that recurring disputes between oil workers and management reflect deeper structural issues in Nigeria’s industrial relations. They pointed out that grievances often escalate into strikes due to weak enforcement of labour laws, inadequate dispute resolution mechanisms, and mistrust between unions and employers. Strengthening dialogue platforms, they argued, could prevent crises from reaching the point of industrial action.

Looking ahead, stakeholders have urged the federal government and NNPC to honor the commitments made to PENGASSAN to avoid a relapse into fresh disruptions. Some have suggested the creation of a permanent joint committee involving unions, government agencies, and oil companies to regularly review labour issues in the sector. Such a body, they argue, could provide early warning and mediation before disputes escalate into strikes.

For ordinary Nigerians, the suspension of the strike brings relief, but concerns linger about the recurring pattern of industrial unrest in the oil industry. With the economy still struggling under the weight of high inflation, foreign exchange pressures, and unemployment, prolonged disruptions in oil supply could further worsen living conditions.

As the dust settles, the strike has reinforced the reality that Nigeria’s economy remains heavily exposed to shocks in the petroleum sector. While PENGASSAN’s decision to suspend action has averted an immediate crisis, the onus is now on government and industry leaders to follow through on their promises and build lasting frameworks that balance workers’ welfare with the nation’s economic stability.