Nigeria may have lost approximately N148.8 billion in oil revenue on Monday due to an industrial action by Organised Labour protesting the Federal Government’s N60,000 minimum wage proposal. According to the Nigerian Upstream Petroleum Regulatory Commission, the country produces 1,281,478 barrels of crude oil daily, excluding condensates.
On Monday, Brent crude, the global benchmark, traded at $78.27 per barrel. The Central Bank of Nigeria’s official exchange rate for the dollar was N1,483.5.
Oil workers under the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) had declared their intent to shut down oil installations nationwide during the strike. PENGASSAN specifically instructed its zonal, branch, and chapter executive councils to block entrances to all upstream oil installations from Monday.
Industry sources confirmed widespread implementation of this directive, leading to disruptions in oil production at many stations.
“Significant compliance by members was observed across many stations today, sending a message to the government,” an anonymous union official said.
The disruption to crude oil production resulted in an estimated loss of N148.8 billion in one day, calculated by multiplying the daily production volume by Monday’s Brent price and the official exchange rate.
PENGASSAN had earlier directed its enforcement teams to block all upstream oil installations nationwide from Monday. The directive was outlined in a notice titled “Special Announcement from the National Desk of PENGASSAN,” signed by Juliana Adenike, Public Relations Officer, Lagos Zone.
The directive emphasized strict compliance, mandating no entry or exit at all offices. All executives were instructed to wear PENGASSAN attire and ensure 100% adherence to the directive, with a joint task force of TUC/NLC and Lagos ZECOM overseeing compliance.
PENGASSAN and NUPENG wrote separate letters to their National Executive Councils, mandating an indefinite strike from Monday. The letters directed members to shut down all operations in the upstream, midstream, and downstream sectors, except for safety personnel.
The letters, signed by General Secretary Lumumba Okugbawa for PENGASSAN and General Secretary Afolabi Olawale for NUPENG, highlighted the breakdown of discussions on the national minimum wage and the government’s lack of an acceptable offer.
NUPENG also expressed deep concern over the Federal Government’s attitude towards negotiating a new minimum wage, urging all leaders to ensure total compliance with the strike directive.
