The Nigerian National Petroleum Company Limited has reported a significant decline in oil and gas production due to the recent nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria. The strike, which was brief, resulted in a reduction of approximately 283,000 barrels per day in crude oil output, equivalent to about 16% of the country’s national output. Additionally, gas output decreased by 1.7 billion standard cubic feet per day, leading to a loss of over 1,200 megawatts of power generation.
According to the Group Chief Executive Officer of the NNPCL, Bayo Ojulari, the industrial action caused significant production deferments and projected revenue losses from missed crude liftings and reduced gas sales. In a letter dated September 29, 2025, Ojulari informed regulators that the company is facing immediate and compounding cash flow pressures due to the strike. The NNPCL has been engaging with operating partners and key stakeholders to enhance security and emergency protocols, and has activated its Business Continuity Plan, with non-union staff taking over operations where possible.
The strike has had far-reaching impacts, extending beyond the Dangote Refinery and posing systemic risks to energy supply, personnel and asset security, and the wider economy. If prolonged, the disruptions could pose a material threat to national energy security. The NNPCL has reported that within the first 24 hours of the strike, production deferments stood at approximately 283,000 barrels per day of oil, 1.7 billion standard cubic feet per day of gas, and over 1,200 megawatts of power generation impaction.
The Nigerian oil and gas industry is a critical sector of the country’s economy, and any disruptions to production can have significant consequences. The NNPCL’s efforts to mitigate the effects of the strike and restore production to normal levels are crucial to ensuring the country’s energy security and minimizing revenue losses. As the situation continues to unfold, it is likely that the company will face ongoing challenges in maintaining stable production levels and addressing the systemic risks posed by the strike.
