Nigeria’s oil and gas sector was plunged into crisis on Monday as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) began a nationwide strike, forcing a shutdown of major industry regulators and operators.
The strike has paralyzed activities at the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The union accused the Dangote Refinery of unlawfully dismissing more than 800 Nigerian workers after they attempted to join PENGASSAN. Describing the mass sack as a “blatant attack on workers’ rights and freedom of association,” the union vowed not to back down until the affected employees are reinstated.
In its strike directive, PENGASSAN ordered members nationwide to suspend operations across oil facilities and cut crude and gas supply lines to the Dangote Refinery.
The shutdown has triggered growing fears of widespread disruptions in petroleum supply chains. Analysts warn that prolonged industrial action could cripple power plants dependent on gas, stall petroleum product distribution to filling stations, and slash government oil revenues. In addition, exports may be impacted, further straining Nigeria’s foreign exchange earnings.
Industry observers also caution that the strike could dampen already fragile investor confidence in Nigeria’s oil and gas sector, which has long grappled with production shortfalls, underinvestment, and rampant crude theft.
With the petroleum industry at the heart of Nigeria’s economy, the coming days will be critical in determining whether dialogue between the government, PENGASSAN, and industry stakeholders can resolve the dispute before the impacts deepen nationwide.
Report by: Kendrick Ovie | Edited by: Chris Odjomah