Nigeria loses N149bn to one-day oil workers strike
Nigeria may have lost around N148.8 billion in oil income on Monday as a result of the Organised Labour's industrial action to protest the Federal Government's N60,000 minimum wage proposal.Nigeria produces 1,281,478 barrels of crude oil per day (excluding condensates), according to the latest recent data from the Nigerian Upstream Petroleum Regulatory Commission.
Brent, the global standard for crude oil, was trading at $78.27 per barrel on Monday. The official Central Bank of Nigeria exchange rate for the US dollar on Monday was N1,483.5.
Oil workers under the Petroleum and Natural Gas Senior Staff Association of Nigeria and its equivalent in the Nigeria Union of Petroleum and Natural Gas Workers have frequently proclaimed their determination to shut down.On Sunday, PENGASSAN expressly instructed its zonal, branch, and chapter executive councils to block the entrances to all upstream oil plants nationwide beginning Monday.
According to industry sources, this was implemented in numerous stations on Monday, resulting in disruptions to oil output at the impacted stations.
"Of course, there was significant compliance by members across many stations today, and this is to send a message to the government," said a union official, who spoke on the condition of anonymity due to a lack of authority to talk on the subject.
Based on the disruption in crude oil production, when the daily output amount is compared to the cost of Brent on Monday and the official exchange rate, Nigeria may have lost around N148.8 billion in just one day as a result of the strike.
According to prior reports, PENGASSAN has ordered its enforcement teams to block the entrances to all upstream oil plants nationwide beginning Monday.
The decision was communicated to all of the oil union's zonal, branch, and central executive councils in a notice titled "Special Announcement from the National Desk of PENGASSAN".
According to prior reports, PENGASSAN has ordered its enforcement teams to block the entrances to all upstream oil plants nationwide beginning Monday.
The decision was communicated to all of the oil union's zonal, branch, and central executive councils in a notice titled "Special Announcement from the National Desk of PENGASSAN".
Recall that PENGASSAN and NUPENG issued separate letters to their National Executive Councils on Saturday, ordering them to go on indefinite strike on Monday.
In the letters, PENGASSAN and NUPENG urged their members to suspend all operations in the oil sector's upstream, midstream, and downstream arms, with the exception of personnel manning for safety.
Lumumba Okugbawa, General Secretary of PENGASSAN, signed the letter for the senior staff association, while Afolabi Olawale, General Secretary of NUPENG, signed on behalf of the downstream/midstream oil union.
NUPENG members are primarily responsible for midstream and downstream oil sector activities, whilst PENGASSAN members are in charge of the majority of upstream oil and gas activities.
In the letters, PENGASSAN and NUPENG urged their members to suspend all operations in the oil sector's upstream, midstream, and downstream arms, with the exception of personnel manning for safety.
Lumumba Okugbawa, General Secretary of PENGASSAN, signed the letter for the senior staff association, while Afolabi Olawale, General Secretary of NUPENG, signed on behalf of the downstream/midstream oil union.
NUPENG members are primarily responsible for midstream and downstream oil sector activities, whilst PENGASSAN members are in charge of the majority of upstream oil and gas activities.
The letter from PENGASSAN read in part, "Following the orders from our umbrella organization, the Trade Union Congress of Nigeria, on the foregoing topic, you are thus advised to withdraw your services from all work locations effective Monday, June 3, 2024. Member withdrawals include offices, a logistical base, field operations, terminal operations, loading sites, and so forth. The sole exception is when personnel are present to ensure safety.
"The above is the result of a breakdown in discussion on the national minimum wage between the government and organized labour, since the administration is unwilling to offer an appropriate minimum pay that can solve the current economic issues of the country's workers.
"The above is the result of a breakdown in discussion on the national minimum wage between the government and organized labour, since the administration is unwilling to offer an appropriate minimum pay that can solve the current economic issues of the country's workers.
"We expect total compliance as anything to the contrary will be viewed as sabotage of the struggle which will attract the necessary sanctions."
NUPENG, in its letter titled "Compliance with the directive on indefinite nationwide strike," stated that the union was entirely committed to the decision to go on strike.
The message stated, in part, "We extend you fraternal greetings from the national secretariat of our great union. This is to notify all of our members and branches in all oil and gas installations, operations, and services, including distribution and marketing of petroleum products, that our great union is fully committed to ensuring complete compliance with the Nigeria Labour Congress' directive issued on Friday, May 31, 2024, for an indefinite nationwide strike beginning Monday, June 3, 2024.
The message stated, in part, "We extend you fraternal greetings from the national secretariat of our great union. This is to notify all of our members and branches in all oil and gas installations, operations, and services, including distribution and marketing of petroleum products, that our great union is fully committed to ensuring complete compliance with the Nigeria Labour Congress' directive issued on Friday, May 31, 2024, for an indefinite nationwide strike beginning Monday, June 3, 2024.
"As a Union, we are deeply concerned and disturbed by the Federal Government's insensitive and irresponsive attitude toward the critical issue of negotiating a new minimum wage for Nigerian workers, given the administration's various social economic policies that have impoverished the working people of this country.
"Leaders of our great union at all levels, including units, zones, and branches, should promptly implement all mechanisms to assure complete compliance with this mandate. Our unity is continuous because the union strengthens us."
"Leaders of our great union at all levels, including units, zones, and branches, should promptly implement all mechanisms to assure complete compliance with this mandate. Our unity is continuous because the union strengthens us."
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