Nigeria’s Oil and Gas Sector Faces Challenges and Progress
Nigeria’s oil and gas sector has experienced a mix of challenges and progress in recent months. The Nigerian National Petroleum Company Limited (NNPC) reported significant impacts on crude oil and gas production due to a recent strike by the Petroleum and Natural Gas Senior Staff Association (PENGASSAN). Despite these setbacks, the company has made notable strides in restoring production levels and improving overall output.
Impact of the Strike on Production
The strike, which lasted for three days, led to a loss of 200,000 barrels per day (bpd) of crude oil, with total deferred production exceeding 600,000 barrels during the disruption. This was attributed to the absence of critical staff at key facilities, which hindered optimal production. Additionally, gas production was affected, and power generation saw a reduction of about 1.2 megawatts due to the strike.
The GCEO of NNPC, Bayo Ojulari, described the strike as unfortunate but highlighted that the federal government played a crucial role in resolving the crisis through the Federal Ministry of Labour and the Office of the National Security Adviser (NSA). He noted that a communiqué was reached, outlining a way forward, and expressed hope that all parties would adhere to it. As a result, production has gradually returned to normal levels, although some areas are still catching up.
Recent Achievements in Production
Despite the challenges, Nigeria has made significant progress in its oil and gas production. In September 2025, the country recorded 1.68 million barrels per day (mbpd) of crude oil, marking the highest level in about five years. Additionally, gas production reached 7 billion cubic feet (BCF) per day, which is the highest in recent times.
Ojulari emphasized that the recent turnaround maintenance conducted in August and September is expected to contribute to increased production this month. He expressed optimism that by the end of the year, Nigeria could achieve a production rate of at least 1.8 mbpd.
Price Hikes and Market Response
The recent hike in the price of cooking gas has been attributed to artificial scarcity caused by the PENGASSAN strike. Ojulari explained that delays in movement and loading during the strike led to an increase in prices. However, he expects prices to stabilize once normal operations resume.
The NNPC has also raised the pump price of Premium Motor Spirit (PMS), commonly known as petrol, at its retail outlets. In Abuja, the price increased from N890 to N905 per litre, representing a 1.7% increase. According to the President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, the price hike is linked to supply disruptions caused by the standoff between PENGASSAN and Dangote Refinery. IPMAN members continue to sell petrol between N885 and N895 per litre.
Strategic Goals and Future Outlook
Ojulari’s visit to President Bola Tinubu focused on updating the president on developments in the oil sector, particularly the task of attracting investors. The president has set a clear mandate for NNPC to grow crude oil production to at least 2 million bpd by 2027 and up to 3 million bpd by 2030. Ojulari outlined the progress made this year and the preparations for next year to ensure the achievement of these goals.
Conclusion
While the recent strike posed challenges to Nigeria’s oil and gas sector, the country has shown resilience and determination to restore production levels. With ongoing efforts to attract investment and improve infrastructure, Nigeria is well-positioned to achieve its strategic goals and maintain a stable energy market.
