Oil Industry Strike Costs Nigeria N148.8 Billion in One Day

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Organized Labour’s industrial action protesting against the Federal Government’s N60,000 minimum wage proposal may have led Nigeria to lose approximately N148.8bn in oil revenue on Monday.

According to the most recent data from the Nigerian Upstream Petroleum Regulatory Commission, Nigeria daily produces 1,281,478 barrels of crude oil (excluding condensates). On Monday, the global benchmark for crude oil, Brent, traded at $78.27 per barrel, while the official Central Bank of Nigeria exchange rate for the United States dollar was N1,483.5.

Oil workers from the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers had announced their intention to shut down oil installations nationwide during the strike. Specifically, PENGASSAN instructed its zonal, branch, and chapter executive councils to block the entrances of all upstream oil installations across the country starting from Monday.

Industry sources confirmed that this directive was implemented in numerous stations on Monday, resulting in the disruption of oil production at those stations.

Impact of Organized Labour’s Strike on Nigeria’s Oil Revenue

An official from the union, speaking anonymously, mentioned, “Members complied significantly across multiple stations today, intending to convey a message to the government.” The disruption in crude oil production on Monday led to an estimated loss of about N148.8bn for Nigeria due to the strike.

Prior to the strike, PENGASSAN had directed its enforcement teams to block the entrances of all upstream oil installations nationwide starting from Monday. The association clarified that this order was in alignment with Organized Labour’s declared strike.

PENGASSAN and NUPENG separately communicated with their National Executive Councils, instructing them to commence an indefinite strike on Monday.

PENGASSAN guided its members to cease operations in the upstream, midstream, and downstream sectors of the oil industry, except for safety personnel. NUPENG members predominantly oversee activities in the midstream and downstream sectors, whereas PENGASSAN handles most upstream activities in the oil and gas sector.

The breakdown in discussions over the national minimum wage between the government and organized labour prompted the decision to initiate the strike. Both PENGASSAN and NUPENG stressed the importance of complete adherence to the directive, underscoring their dedication to the fight for an acceptable minimum wage for Nigerian workers.

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