Nigeria’s Oil Output Falls by 16% Amid PENGASSAN Strike, Says NNPCL

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Abuja, October 2, 2025 — The Nigerian National Petroleum Company Limited (NNPCL) has confirmed that the nation’s crude oil production declined by 16 percent following a three-day strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The industrial action, which commenced earlier this week, disrupted operations across key oilfields and export terminals, causing a sharp reduction in output at a time when the country is striving to meet its OPEC production quota.

In a statement issued on Thursday, NNPCL disclosed that the strike led to the shutdown of several production facilities, directly impacting daily crude volumes and contributing to revenue losses. While specific figures were not provided, industry sources estimate the decline translates to hundreds of thousands of barrels per day.

PENGASSAN had embarked on the strike to protest unresolved labor grievances, including welfare concerns and calls for improved working conditions across the sector. The union suspended operations after negotiations with management broke down, leaving critical production and export activities stalled.

NNPCL described the disruption as a significant setback to ongoing efforts aimed at stabilizing Nigeria’s oil output, which has been under pressure from theft, pipeline vandalism, and underinvestment in recent years.

“Preliminary assessments indicate that production fell by approximately 16 percent during the three-day industrial action. The strike underscores the urgent need for sustained engagement with labor unions to safeguard national oil production,” the statement read.

Talks between government representatives, NNPCL management, and PENGASSAN officials are ongoing, with indications that both sides are working toward a resolution to prevent a recurrence.

Nigeria, Africa’s largest oil producer, remains heavily reliant on crude exports for government revenue and foreign exchange. Analysts warn that prolonged disruptions of this nature could further strain fiscal stability and undermine confidence in the country’s energy sector.

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