Nigeria’s Oil Output at Risk as Seplat Strike Escalates

by Toye Faleye

Lagos: Nigeria’s efforts to increase crude production are now at risk after workers at Seplat Energy, the country’s largest independent oil and gas producer, began an indefinite strike on Friday.

The strike, organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), could halt operations responsible for almost 9% of Nigeria’s total liquids output.

The union said the strike happened because talks over a 2026 bargaining agreement and staff welfare broke down. In letters to Seplat’s chief executive, PENGASSAN said its members would stop most operations, except for essential safety and power work. The strike affects all assets, joint ventures, and offices across the country.

Seplat Energy averaged 131,506 barrels of oil equivalent per day in 2025 and expected to increase output to 155,000 barrels per day this year.

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If the strike lasts, it could seriously affect Nigeria’s oil supply, especially as global oil prices rise and financial pressures grow.

The government is counting on higher production to supply the new Dangote refinery and boost foreign exchange earnings.

Nigeria, Africa’s biggest oil producer, faces increased pressure to boost crude output and stabilise its economy.

The strike highlights how vulnerable the sector is, since labour disputes can quickly affect national revenue and energy security. Seplat has not yet made a public statement.nse.

This situation puts Nigeria at a turning point. The country must resolve the labour dispute quickly or risk losing ground as it tries to benefit from higher global oil prices.

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