Nigeria may have lost over N148.8 billion in oil revenue on Monday as a result of the organized labor’s industrial action against the federal government’s proposed N60,000 minimum wage.
The Nigerian Upstream Petroleum Regulatory Commission’s most recent statistics show that (excluding condensate) Nigeria produces 1,281,478 barrels of crude oil per day, according to The Punch.
The price of a barrel of crude oil, known as Brent, was $78.27 worldwide. On Monday, N1,483.5 was the official Central Bank of Nigeria exchange rate for the US dollar.
When the daily output level is compared to the price of Brent on Monday and the official exchange rate, the disruption to crude oil production suggests that Nigeria would have lost almost N148.8 billion in a single day as a result of the strike.
Throughout the strike, members of the Nigeria Union of Petroleum and Natural Gas Workers and the Petroleum and Natural Gas Senior Staff Association of Nigeria declared a total shutdown of all oil facilities across the country.
PENGASSAN explicitly instructed its executive councils at the zonal, branch, and chapter levels on Sunday to commence blocking the entrances of all upstream oil sites across the country on Monday.
Industry sources attested to the fact that this was put into effect in numerous oil infrastructures on Monday, disrupting the output of the oil facilities.
“Of course, there was significant compliance by members across many stations today and this is to send a message to the government,” an official of the union, who spoke on condition of anonymity due to lack of authorisation to speak on the matter, stated.
Recall on Saturday, PENGASSAN and NUPENG sent separate letters to their respective National Executive Councils directing them to begin an indefinite strike on Monday.
Except for personnel manning for safety, PENGASSAN and NUPENG instructed its members to cease all operations in the upstream, midstream, and downstream segments of the oil industry in the letters.
The General Secretary, PENGASSAN, Lumumba Okugbawa, signed the letter for the senior staff association, while the General Secretary, NUPENG, Afolabi Olawale, signed for the downstream/midstream oil union.
The letter by PENGASSAN read in part, “Following the directives from our umbrella body, the Trade Union Congress of Nigeria on the above subject, you are hereby directed to withdraw your services from all work locations effective Monday, June 03, 2024. The withdrawal of members includes offices, a logistics base, field operations, terminal operations, loading points, etc. The only exception is personnel manning for safety.
“The above is a result of the breakdown of discussion on the national minimum wage between the government and organised labour as the government is not desirous of offering an acceptable minimum wage that could address the current economic challenges plaguing the country’s workforce.
“We expect total compliance as anything to the contrary will be viewed as sabotage of the struggle which will attract the necessary sanctions.”
