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Nigeria oil production drops 16% due to strike

The Nigerian National Petroleum Company Limited (NNPCL) has reported a sharp decline in oil and gas production following a brief […]

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The Nigerian National Petroleum Company Limited (NNPCL) has reported a sharp decline in oil and gas production following a brief nationwide strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria. The stoppage cut crude oil output by roughly 283,000 barrels per day—about 16 % of the country’s total production—and reduced gas output by 1.7 billion standard cubic feet per day, resulting in a loss of more than 1,200 megawatts of power generation.

Group Chief Executive Officer Bayo Ojulari said the industrial action caused significant production deferments and projected revenue losses from missed crude liftings and reduced gas sales. In a letter dated 29 September 2025, he informed regulators that the strike is creating immediate and compounding cash‑flow pressures for the company.

In response, NNPCL has been working with operating partners and key stakeholders to strengthen security and emergency protocols. The company has activated its Business Continuity Plan, assigning non‑union staff to take over operations wherever possible. Within the first 24 hours of the strike, deferments amounted to 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.

The strike’s impact extends beyond the Dangote Refinery, posing systemic risks to energy supply, personnel and asset security, and the broader economy. If the disruption persists, it could become a material threat to national energy security. Given the critical role of the oil and gas sector in Nigeria’s economy, NNPCL’s efforts to mitigate the strike’s effects and restore normal production are essential for safeguarding energy security and minimizing revenue losses. The company is likely to face ongoing challenges in maintaining stable production levels and addressing the systemic risks created by the strike.

Ifunanya

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