By Akinsuroju Olubunmi
Oil workers’ strike costs Nigeria N148.8bn in revenue
Nigeria may have incurred a loss of approximately N148.8bn in oil revenue on Monday due to an industrial action by Organised Labour protesting the Federal Government’s N60,000 minimum wage proposal.
The country’s daily crude oil production, excluding condensates, stands at 1,281,478 barrels, as per the latest data from the Nigerian Upstream Petroleum Regulatory Commission.
On Monday, the global benchmark for crude oil, Brent, was traded at $78.27 per barrel, while the official exchange rate of the United States dollar to the Nigerian Naira was N1,483.5.
The Petroleum and Natural Gas Senior Staff Association of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers had vowed to shut down oil installations nationwide during the strike, leading to disruptions in oil production at affected stations.
PENGASSAN directed its zonal, branch, and chapter executive councils to block the entrances of all upstream oil installations nationwide, with a call for strict compliance to the strike.
The strike, which resulted from the breakdown of discussions on the national minimum wage between the government and organised labour, led to a significant loss in oil revenue for Nigeria.
PENGASSAN and NUPENG mandated their members to embark on an indefinite strike, shutting down operations in the upstream, midstream, and downstream arms of the oil sector, except for personnel manning for safety.
The insensitivity of the Federal Government to negotiating a new minimum wage for Nigerian workers was a key point of contention, leading to the decision for the strike by the unions.
The impact of the strike was felt across the oil and gas sector, reflecting the unions’ commitment to ensuring total compliance with the directive of the Nigeria Labour Congress for an indefinite nationwide strike.
As the country grapples with the consequences of this strike, it is evident that the economic implications are far-reaching, with the oil revenue loss serving as a stark reminder of the power and influence of organized labor in Nigeria.
1. Strike
2. Revenue
Oil workers’ strike costs Nigeria N148.8bn in revenue