Nigeria’s lost 16% of oil output during strike over Dangote Refinery job cuts

Nigeria’s crude and gas production dropped sharply during a short-lived strike by oil workers that ended Wednesday after government intervention.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had downed tools on September 28 to protest the dismissal of more than 800 unionised employees at the 650,000-barrel-per-day Dangote Refinery, the continent’s biggest.

Figures contained in an internal assessment by the Nigerian National Petroleum Company (NNPC) show the action shaved roughly 283,000 barrels a day—about 16% of national crude output—and 1.7 billion standard cubic feet of gas from production. More than 1,200 megawatts of power supply was also lost as a result of the disruptions.

The stoppage forced the shutdown of major facilities including Shell’s Bonga floating production storage unit and the Oben gas plant. It also delayed the restart of two liquefied natural gas trains at Nigeria LNG, while slowing activity across midstream pipelines and processing networks.

NNPC described the impact as posing a “material threat to national energy security” had the strike continued. It warned of revenue losses from missed cargo liftings and gas sales, even as non-union staff were drafted in under emergency continuity plans.

Export operations also felt the pinch. Loadings at the Dangote plant and other terminals such as Akpo, Brass, and Egina were held up, raising risks of demurrage charges for vessels. At least five critical maintenance and project schedules also slipped, the report noted.

The walkout was suspended following government-brokered negotiations in which Dangote agreed to reinstate the sacked workers. The move eased immediate fears of fuel shortages and further power disruptions.

Still, NNPC cautioned that the episode had exposed vulnerabilities in the energy system. “The strike action has highlighted the fragility of operations across critical facilities,” the company said, urging closer coordination with labour to avoid future shocks.