Dangote refinery strike cuts Nigeria oil output by 600,000 barrels

Nigeria has lost over 600,000 barrels of oil after a three-day nationwide strike over mass layoffs at the Dangote refinery disrupted production, the Nigerian National Petroleum Company (NNPC) has confirmed. 

NNPC upstream chief Bayo Ojulari said the walkout by the country’s main oil union made “optimum production almost impossible” as critical staff were absent from facilities. The strike resulted in a deferred production of about 200,000 barrels per day (bpd) over the period. 

Union vs Dangote Management 

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) called the strike in protest at the dismissal of around 800 refinery workers. The union claims the sackings were retaliation for unionising, while Dangote Industries insists they were part of a restructuring plan and accused dismissed staff of “acts of sabotage.” 

READ ALSO; Nigerian oil union's nationwide strike threatens to halt oil supply

Impact Beyond Nigeria 

The Dangote refinery, owned by Africa’s richest man, Aliko Dangote, is a key supplier for Nigeria and several neighbouring countries. The stoppage threatened to tighten fuel supplies both domestically and in the region. 

Industry Recovery at Risk 

The strike hit just as Nigeria’s oil sector was showing signs of recovery. Before the dispute, output in September averaged 1.68 million barrels per day, up from August, with the oil ministry reporting that active drilling rigs had risen from 31 in January to 50 in July. Nigeria also produced 7 billion cubic feet of gas daily last month.