Nigeria may have lost approximately N148.8 billion in oil revenue on Monday due to an industrial action by the Organised Labour, protesting the Federal Government’s N60,000 minimum wage proposal.
According to the latest data from the Nigerian Upstream Petroleum Regulatory Commission, Nigeria produces 1,281,478 barrels of crude oil daily, excluding condensates. On Monday, Brent crude, the global benchmark, was traded at $78.27 per barrel, and the official Central Bank of Nigeria exchange rate was N1,483.5 per dollar.
The strike, organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), led to a significant shutdown of oil installations nationwide. This action resulted in a substantial halt in oil production, contributing to the massive financial loss.
PENGASSAN had directed its members to block entrances to all upstream oil installations starting Monday. Reports from the industry confirmed that this directive was largely followed, disrupting operations at numerous stations. An official from the union, who preferred to remain anonymous, stated, “There was significant compliance by members across many stations today to send a message to the government.”
Calculating the daily production volume against Monday’s Brent price and the official exchange rate, it is evident that Nigeria’s financial loss due to the strike amounted to approximately N148.8 billion.
PENGASSAN had earlier issued a notice to its members, emphasizing the importance of strict compliance with the strike. Juliana Adenike, Public Relations Officer for PENGASSAN’s Lagos Zone, reiterated the need for members to prevent entry and exit at their offices and to ensure full adherence to the directive. The notice also mentioned that a joint task force from the Trade Union Congress (TUC), Nigeria Labour Congress (NLC), and Lagos Zonal Executive Committee would monitor compliance and penalize defaulters.
In a separate communication, PENGASSAN and NUPENG instructed their members to shut down all operations in the upstream, midstream, and downstream sectors, with the exception of personnel responsible for safety. The letters, signed by Lumumba Okugbawa for PENGASSAN and Afolabi Olawale for NUPENG, highlighted the unions’ commitment to the indefinite strike due to the government’s failure to offer an acceptable minimum wage that addresses the current economic challenges.
NUPENG’s letter emphasized the union’s resolve, stating, “We are deeply concerned and disturbed by the Federal Government’s insensitive attitude towards negotiating a new minimum wage for Nigerian workers, considering the socioeconomic policies that have impoverished the workforce.” The union urged its leaders at all levels to ensure total compliance with the strike directive.
The one-day strike underscores the ongoing tensions between the Nigerian government and organized labor over wage issues, with significant economic repercussions for the country’s oil-dependent economy.
