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NNPC laments losses as PENGASSAN halts strike

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The Nigerian National Petroleum Company Limited, Group Chief Executive Officer, Bashir Ojulari, has lamented the crude and gas production losses resulting from the three-day strike carried out by the Petroleum and Natural Gas Senior Staff Association of Nigeria.

In a letter written to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian Upstream Petroleum Regulatory Commission, Ojulari explained that the suspended strike led to 16 per cent oil production and 30 per cent marketed gas losses, while the nation suffered a 20 per cent power supply shortfall.

The national oil company’s letter, dated 29 September 2025 and titled ‘Impact Assessment of ongoing industrial action,’ was also sent to the National Security Adviser and the Director General, Department of State Services.

The industrial action caused by a rift between the union and the Dangote Refinery forced the shutdown of major oil terminals, gas plants and power facilities, leading to the deferment of 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, choking off vital income streams from the country’s two biggest revenue sources.

This came as the leadership of the union announced the suspension of its nationwide strike against Dangote Petroleum Refinery following the intervention of the Federal Government, even as it cautioned that the truce remained temporary and could be revisited if the pending issues were not addressed.

The PUNCH reports that both PENGASSAN and the management of the 650,000 refinery have been at loggerheads.

The rift stemmed from allegations by PENGASSAN that the Dangote Refinery engaged in mass transfers and sackings of union members, while also replacing some Nigerians with foreign nationals, claims the company consistently denied.

The refinery’s management stated that the workforce reorganisation was due to operational requirements and not related to union activities.

The standoff escalated when the union embarked on an industrial action by halting gas and crude oil supplies to the refinery, raising the alarm over potential disruptions to the nation’s energy supply and economic stability.

The Federal Government intervened over concerns about the impact of the dispute, citing the risk of “adverse effects on the economy and energy security,” and convened high-level talks to resolve the impasse.

Detailing the financial losses in the letter obtained by our correspondent on Wednesday,  the NNPCL GCEO said industrial action resulted in significant production deferments.

Ojulari disclosed that, within the first 24 hours of the strike, as of September 29, 2025, production deferments stood at 283,000 barrels of oil per day, 1.7 billion standard cubic feet of gas per day, and more than 1,200 megawatts of power generation

According to him, this translates to around 16 per cent of national oil production, 30 per cent of marketed gas, and 20 per cent of electricity supply, with the impacts expected to intensify if the situation lingers.

“As of 29 September 2025 (within the first 24 hours of the strike), production deferments stood at approximately 283 kbpd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impact. This equates to around 16 per cent of national oil output, 30 per cent of marketed gas, and 20 per cent of electricity generation. Should the situation continue, the impacts are expected to intensify, posing a material threat to national energy security,” the GCEO noted.

The gas sector also recorded heavy losses during the strike, with about 1.7 billion standard cubic feet per day taken offline. Industry data showed that this volume translates to roughly 1.7 million Mcf of gas daily, which, when converted at 1.037 MMBtu per Mcf, amounts to about 1.76 million MMBtu each day.

He further explained that at least five scheduled critical maintenance activities have been affected, with knock-on effects likely to worsen deferments in subsequent periods. These include the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance and SEPNU EAP IGE.

Ojulari also revealed that about 100,000 barrels per day of crude oil and 1.341 billion standard cubic feet of monetised gas across Joint Venture and Production Sharing Contract assets, which were due to be restored this week, have now been delayed.

Ojulari noted that while a limited number of non-unionised staff were still facilitating crude exports, operations remained heavily constrained.

He warned that ongoing and scheduled lifting operations across the terminals were likely to suffer further financial setbacks in the coming months, raising the risk of demurrage claims by international buyers.

At the Brass Terminal, for instance, the loading of an NNPC cargo that was close to completion was stalled after documentation could not be finalised due to the strike. The delay, he said, had already triggered demurrage costs.

The NNPCL boss stressed that the financial toll was mounting rapidly, with significant revenue losses projected at current deferment levels.

According to him, missed crude lifting and disrupted gas sales were placing the company’s cash flow under “immediate and compounding pressure.”

“It is our considered view that the current industrial action has impacts that extend beyond the Dangote Refinery. The disruptions pose systemic risks to energy supply, personnel and asset security and the wider economy. A sustainable solution is required to prevent such an extensive interruption of the overall energy security infrastructure and to safeguard national energy security and stability,” he concluded.

Meanwhile, the PENGASSAN leadership explained that the decision to temporarily suspend the nationwide strike was taken out of respect for federal institutions and government mediation efforts, stressing that it was not a show of confidence in Dangote.

Osifo said the union was taking the “moral high ground” by bowing to government persuasion despite strong doubts about the sincerity of the Dangote Group.

Speaking at a news conference in Abuja on Wednesday, Osifo stated, “We are only suspending, not calling off this strike. If any part of this agreement is broken, we will not give any warning. We will immediately resume our suspended industrial action.”

He stressed that the industrial action was rooted in the fundamental right of workers to freedom of association, insisting that members joined the union “to secure better welfare and fair pay.”

According to him, PENGASSAN remains unsatisfied with aspects of the communique signed under the supervision of the Ministry of Labour, warning that the union’s patience should not be mistaken for weakness.

Osifo said, “Yes, we understand that Dangote does not respect the rules of engagement. Yes, we understand that Dangote wants to prove that he is always bigger than the rules and above the law. Yes, we understand that today, we still have some members working within the confines of the refinery.

“Yes, today, we still have some members working in some companies within the group. Yes, we know or we believe or we suspect that some of the things that the government has asked Dangote to do, that he’s going to slip in it and won’t do them just as he did to NUPENG. We have our suspicion.

“We truly don’t believe that he will keep to his own side of the bargain. We truly don’t believe that he will live up to expectations. We don’t believe. But because we have respect for institutions, because we have respect for government, because we have respect for processes, and because we have respect for procedures and because of those in government who sat up till almost 4 a.m. this morning to try and resolve this subject, the NEC has decided to listen to them. Even with our mutual suspicion that Dangote will not do what is right, even with our misgivings that the document did not clearly represent what we have asked for.

“But even with the shortcomings in the document, the National Executive Council of PENGGASAN has decided that they will go ahead to take the moral high ground, that we will go ahead to prove to the government that we are extremely patriotic people, that love this country more than any single individual, that we will go ahead to suspend the industrial action that we started on Sunday, 28th day of September 2025.”

He emphasised that the dispute was about the fundamental right of workers to freedom of association and fair pay.

“Remember, we are only suspending and we didn’t call off. We will be monitoring and following closely on any slip on the part of Dangote. If any part of this agreement, or any part of this communique as put up by the Ministry of Labour, is broken, we will not give any notice, we will not give any warning, and we will resume the suspended industrial action immediately.

“We have only suspended the industrial action in respect of the government of the land. As an institution, are we completely happy with what was provided? The answer for us is no,” he noted.

Osifo further dismissed claims that the union embarked on its nationwide strike at the Dangote Refinery because of check-off dues.

He said such suggestions were “laughable” and did not reflect the reality of the dispute.

“Some people asked if it was because of check-off dues that PENGASSAN went on strike. We laughed,” he said. “The salaries being paid to the 800 workers at the Dangote Refinery, if you add all of them together, are less than what 20 of our members earn in companies like Chevron, TotalEnergies or ExxonMobil. So, why should we chase them because of check-off dues?”

He stressed that the workers’ union contributions were too small to motivate such a large-scale industrial action.

“Their salary is meagre. Even if you combine their entire check-off dues, I doubt it amounts to what we collect from the smallest branch of PENGASSAN in the country. So, let’s be serious. This fight is not about dues. It is about the freedom of association and the welfare of our members,” Osifo added.

The PENGASSAN boss explained that workers at the Dangote Refinery willingly joined the union because they wanted improved welfare packages and conditions of service comparable to global oil and gas industry standards.

“They fully subscribed to join PENGASSAN because they want their lives to be better. That is why we accepted them, to raise their conditions of service, their pay, and their rights as workers. Any other narrative is zero,” he said.

Osifo also rejected suggestions that the union’s action could undermine the Dangote investment.

“That we want to kill Dangote’s investment? We laughed. Which investment are we going to kill? Shell has had over 10,000 PENGASSAN members and invested more than $200bn in Nigeria’s oil and gas industry. Chevron, TotalEnergies, and ExxonMobil have invested close to $200bn. Dangote has invested just about $20bn. Did we kill Shell or Chevron? No. We helped them to grow,” he stated.

He emphasised that PENGASSAN members formed the backbone of Nigeria’s oil and gas industry, which contributes more than 90 per cent of the country’s foreign exchange earnings and funds the monthly Federation Account Allocation Committee distribution.

On the truce reached following the Federal Government’s intervention, Osifo stated that the union was not entirely satisfied with the communique signed in Abuja.

“If you see that communique, it was signed only by the government. We were not satisfied with some of its contents. After examining it, we saw several grey areas and loopholes. We raised all our concerns, and the government gave us assurances they would be on top of them,” he explained.

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Reps to mediate in PENGASSAN, Dangote refinery dispute

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The House of Representatives on Tuesday resolved to intervene in the recent face-off between members of the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Dangote Refinery, which had disrupted petroleum product distribution nationwide.

The resolution of the House followed the consideration and adoption of a motion of urgent public importance co-sponsored by Kano and Sokoto lawmakers, Alhassan Doguwa and Abdussamad Dasuki, respectively, at Tuesday’s plenary.

Titled: “Need to protect private investment from adversarial unionism,” the lawmakers drew the attention of their colleagues to the significance of the Dangote Refinery, describing it as the largest private petroleum refinery in Africa.

The face-off between PENGASSAN and the Dangote Refinery led to an industrial action which commenced on September 29, 2025, disrupting the operations at the $20bn refinery.

It also led to a disruption in Nigeria’s crude oil production, with a reported daily loss of approximately 200,000 barrels over three days.

The disruption worsened the petroleum supply situation across the country, resulting in scarcity and long queues at filling stations in several states, resulting in severe hardship for millions of Nigerians.

Speaking on the motion, Doguwa, who represents Doguwa/Tudun Wada Federal Constituency, Kano State, stressed the need to protect the Dangote Refinery given its strategic significance to the nation’s economy.

He said, “The House is aware that the Dangote Refinery is a strategic private investment of immense national importance, with the potential to guarantee energy security, reduce import dependency, generate employment, and conserve foreign exchange.

“We are aware that the Dangote Refinery operates within a Free Trade Zone, and therefore falls under the regulatory framework of the Nigeria Export Processing Zones Authority, particularly Section 18(5) of the Nigeria Export Processing Zones Act which clearly states that ‘Employment in the free zone shall be governed by rules and regulations made by the Authority and not subject to the provisions of any enactments relating to employment matters.’

“The House is concerned that actions by labour unions that disregard the legal protections conferred on Free Zones under the NEPZA Act not only constitute a breach of law but also create a hostile investment environment that may deter future local and foreign investors;

“We are worried that if private investments of strategic national importance are continually subjected to unlawful disruptions by adversarial unionism, Nigeria risks not only the failure of key economic assets but also the erosion of investor confidence necessary for national growth and development.”

In his contribution, the member representing Chibok/Damboa/Gwoza Federal Constituency, Ahmad Jaha, urged the House to tread carefully, adding that the call for a probe as prayed by the motion was ill-timed.

Following the adoption of the motion, the House urged its leadership to broker peace between the two parties in the interest of the nation.

It also urged the Federal Ministries of Labour and Employment, Industry, Trade and Investment, as well as Justice, to “Jointly develop and implement a national framework or set of policies to safeguard private investments of strategic national importance from adversarial and unlawful union actions.”

It further charged the Federal Ministry of Justice and NEPZA to ensure full enforcement and compliance with the provisions of Section 18(5) of the Nigeria Export Processing Zones Act in all relevant Free Zone operations.

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Debt dispute: Drama as Max Air pilot refuses to fly

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Drama unfolded at Maiduguri International Airport on Monday as over 100 Max Air’s passengers of were left stranded for hours due to a face-off between the airline’s pilots and management over unpaid debts.

The incident caused panic and confusion among travellers who had already boarded the aircraft and were awaiting departure.

According to an eyewitness who refused to give her name for fear of the unknown, the pilots refused to proceed with the flight, which the flight attendants blamed solely on the pilot’s unpaid entitlements.

This shocking development held the scheduled airline to ransom for some hours, sparking tension among the passengers, with the development forcing them to disembark in frustration after being informed of the dispute and refusal of the pilot to fly.

Another eyewitness who gave his name simply as Shola told The PUNCH that the pilots were protesting unresolved financial issues with the airline.

The traveller who was aboard the affected flight confirmed that boarding had been completed when the airline staff members suddenly instructed passengers to leave the aircraft and return to the terminal.

“We had all taken our seats and were waiting to take off when they asked us to disembark,” the source said.

According to the same source, passengers waited for several hours in uncertainty before the matter was eventually resolved.

“There was tension initially, but after some time, we were told the issue had been settled. We were later asked to re-board the aircraft,” the traveller said.

Confirming the development, the Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority, Michael Achimugu, confirmed the incident, adding that the dispute appeared to have been resolved amicably by both parties without regulatory intervention.

“The flight later departed around past 2:00 pm, which means the issue was resolved. Since it was an internal matter, and the aircraft eventually flew, we consider it closed.”

The NCAA spokesman said. “We typically don’t intervene in salary-related disputes unless a formal report is submitted.”

He further emphasised that while the NCAA regulates safety and operational standards, issues such as wage disputes between staff and management are typically handled internally by the airline unless safety is compromised.

Max Air’s Executive Director, Shehu Wada, also confirmed the development, describing it as a result of miscommunication.

“It is a communication gap issue, and it has been resolved. That is how I can describe it basically,” he said.

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Petrol tops Nigeria’s imports with 613.6m litres in one year

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Nigerians consumed a total of 613.62 million litres of Premium Motor Spirit, popularly known as petrol, for transportation, power generation, and other domestic uses between October 2024 and October 10, 2025.

This is according to fresh data obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority obtained by our correspondent on Monday in Abuja.

Despite the ramp-up in operations at the Dangote Petroleum Refinery and other local plants, imported petrol still accounted for a larger share of the country’s total fuel supply during the period under review.

Out of the total 613.62 million litres of Premium Motor Spirit consumed between October 2024 and October 10, 2025, the NMDPRA data revealed that 236.08 million litres were supplied by domestic refineries, while 377.54 million litres came through imports.

The figures indicate that imported petrol still accounted for the bulk of Nigeria’s fuel needs within the period, with imports dominating supply, contributing about 63 per cent of Nigeria’s PMS needs.

While local refineries, led by the 650,000-barrels-per-day Dangote Refinery, provided the remaining 37 per cent, marking a significant improvement from the previous year’s levels.

The NMDPRA data further indicated that domestic production rose steadily from 9.62 million litres per day in October 2024 to 18.93 million litres per day by October 2025, showing a near 100 per cent increase within the one-year period.

Conversely, import volumes declined sharply from 46.38 million litres per day in October 2024 to 15.11 million litres per day in October 2025, reflecting a 67 per cent drop.

A monthly breakdown of the data revealed a steady decline in petrol importation and a gradual rise in local supply. Import volumes dropped from 46.38 million litres in October 2024 to 36.39 million litres in November and 38.90 million litres in December.

By January 2025, import figures had fallen further to 24.15 million litres, and though there were slight fluctuations in subsequent months – 26.79 million litres in February, 25.19 million litres in March, and 23.73 million litres in April – imports rebounded temporarily to 37.37 million litres in May.

Thereafter, volumes declined again, with 28.54 million litres imported in June, 35.07 million litres in July, 20.66 million litres in August, 19.26 million litres in September, and a year-low of 15.11 million litres as of October 10, 2025.

In contrast, domestic refining output showed notable improvement within the same period, rising from 9.62 million litres in October 2024 to 19.36 million litres in November and 13.13 million litres in December.

The upward trend continued into 2025, with local supply climbing to 22.66 million litres in January and 22.42 million litres in February and maintaining over 20 million litres in both March (20.65 million litres) and April (20.35 million litres).

Though there were minor dips to 17.85 million litres in May, 17.82 million litres in June, and 16.50 million litres in July, output surged again to 21.19 million litres in August before stabilising at 18.93 million litres in October 2025.

The figures reflect a gradual but significant shift in Nigeria’s fuel supply structure, with local refineries, particularly the Dangote Petroleum Refinery, steadily closing the gap on imports within just one year of operation.

The document further showed that total petrol supply averaged 46.6 million litres per day, comprising 29.5 million litres from imports and about 17.1 million litres from local production.

The reduction in petrol imports has also eased pressure on Nigeria’s foreign reserves, as the country spends less on importing refined products. Previously, importers required billions of dollars monthly to settle letters of credit and cover freight and insurance costs.

However, the report noted fluctuations in overall supply, with volumes dipping from 55.21 million litres in May 2025 to 34.04 million litres in October 2025, a sign that logistical constraints and periodic maintenance still affect consistent nationwide distribution.

Oil and gas analysts say the improvement coincides with the first full year of operations of the Dangote Refinery, which began large-scale production earlier in 2025 and now contributes between 15 and 20 million litres of PMS daily to the domestic market.

Since its commissioning in May 2023 and subsequent ramp-up through 2024, the Dangote Refinery has been under global scrutiny as the flagship of Nigeria’s industrial revival agenda.

In its first year of sustained operation, the refinery’s growing output has reshaped Nigeria’s fuel supply structure, reduced foreign exchange exposure, and rekindled confidence in local refining after decades of failed turnarounds at the government-owned Port Harcourt, Warri, and Kaduna refineries.

Commenting, the Chief Executive Officer of Petroleum.ng, Olatide Jeremiah, said that Nigeria’s domestic refining capacity has recorded remarkable progress in the past year, with the Dangote Refinery now supplying about 40 per cent of the country’s daily petrol consumption.

Speaking in reaction to new supply data released by the NMDPRA, the analyst said the progress underscores the growing impact of local refineries on Nigeria’s energy security.

He, however, stressed that the Dangote Refinery and other local refiners require uninterrupted access to crude oil in naira to scale up production and reduce pump prices nationwide.

“The fact that import remains the country’s major source of refined products shows that there are still unresolved issues. In the last year, domestic supply championed by Dangote Refinery has made tremendous progress with about 40 per cent of our daily consumption. Dangote Refinery needs 100 per cent access to crude in naira to increase domestic supply and drive down prices at the pump,” he said.

He lamented that despite being Africa’s biggest crude oil producer and host to the continent’s largest refinery, Nigeria still imports about 60 per cent of its daily petrol needs, a situation he described as inconsistent with the country’s energy potential.

The Petroleum.ng chief urged the Federal Government and the Nigerian Upstream Petroleum Regulatory Commission to strengthen policies that guarantee local refineries full access to domestic crude supply.

“Nigeria, the biggest producer of crude in Africa with the biggest refinery in Africa, should not be importing about 60% of its daily fuel consumption; thus, our pump prices should be amongst the lowest in the world.

The FG, through NUPRC, should continue to formulate frameworks that would allow local refiners access to crude 100 per cent. For me, that’s the recipe for availability and affordability,” he added.

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