Oil Theft Leave PENGASSAN Threatening 30-day Shutdown, Country Risks N1.37tn Loss

Oil Theft Leave PENGASSAN Threatening 30-day Shutdown, Country Risks N1.37tn Loss

  • Oil workers in Nigeria have threatened to embark on a 30-day strike if the if the lingering oil theft in Nigeria is not addressed
  • The oil workers under the aegis of Petroleum and Natural Gas Senior Staff Association (PENSSAN), said oil theft in Nigeria has assumed another dimension
  • Analysts say the Nigerian government stand to lose millions of crude oil production running into billions of Naira if the oil workers make good their threat

Members of the Petroleum and Natural Gas Senior Staff Association of Nigeria on Thursday, September 8, 2022, threatened to shut down oil production in Nigeria for 30 days if the Nigerian government did not address the issue of massive oil theft in the Niger Delta.

The union members protested in various parts of the country, including Abuja, Warri in Delta State and Port Harcourt in Rivers State.

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PENGASSAN, oil workers
Oil workers in Nigeria threaten to embark on strike Credit: Bloomberg / Contributor
Source: Getty Images

Nigeria to loss millions of crude oil, billions of naira from strike

The Punch report said that if the threat by the oil workers is carried out, Nigeria will lose about N1.37 trillion from the proposed shutdown.

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Crude oil is a major foreign exchange earner for the Nigerian government.

PENGASSAN Zonal Chairman, Prince Audu Osihiokhamele, said that those perpetrating oil theft in Nigeria is in government.

According to him, they load vessels but don’t see any as they disappear like a needle.

Osihiokhamele said the failure of the Nigerian government to tackle the thefts would push the union to take drastic action.

Nigeria will lose about 30.03 million barrels of crude production from the proposed shutdown.

Oil minister lament crash of crude oil production

According to the Nigerian Upstream Petroleum Regulatory Commission, crude oil production in the first four months of this year was 1.39 million BPD, 1.26 million BPD, 1.24 million BPD and 1.22 million BPD, respectively.

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In May, June and August of 2022, the figures dropped. As a result, the average oil production for eight months stood at 1.168 million barrels per day.

The threat is coming as the Minister of State for Petroleum Resources, Timipre Sylva, said Nigeria crashed in August due to oil theft.

Not even a high oil price can rescue Nigeria’s oil revenue as It drops to a 4-Month low

Legit.ng reported that the Central Bank of Nigeria (CBN) has revealed that federal government earnings from oil sales dropped to a four-month low.

CBN stated this in its latest monthly economic report for January 2022 published on its website.

According to the CBN data, in January Nigeria made N945 billion, this is 7.8 per cent less than the N1.024 trillion budgeted for the period.

Source: Legit.ng

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