OREDOLA ADEOLA   |   Nigeria may have lost an estimated N160 billion to the scarcity of petroleum products over the last few weeks.

Although the full damage of the strike may not be determined at press time the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSON, believed this amount represents only an average lose to petroleum dependent business in the country.


In a telephone interaction with the executive secretary of PENGASSAN , Comrade Bayo Olowoshile, he disclosed to Hallmark that the fuel scarcity which started on May 1 cost the economy an average of N40 billion weekly. According to him, the crisis hit almost every of the aspect of the economy.  He added that since the crisis lasted for almost four weeks, it could may be estimated at N160 billion for the entire period.

He said, ‘’ apart from the oil and gas sector which was hit by the scarcity, the crisis also affected the telecommunication, banking and the manufacturing firms. The cost of goods and transportation was also increased during the period in view. Some airlines were unable to lift passengers due to the scarcity of Jet- A1, all of these when put together would average N40billion per week. If the situation had continued it would have crippled the economy.’’

A source working with Nigerian Petroleum Development Company (NPDC) Ltd , a subsidiary of the Nigerian National Petroleum Corporation (NNPC), also revealed that  the country lost a minimum of $60.08million N11.96 billion, which he estimated at  $6.676 million, an equivalent of N1.335 billion daily as a result of the strike action embarked upon by workers of the Nigerian Petroleum Development Company, NPDC, over the transfer of operatorship of Oil Mining Leases (OML) 40, 42 and 30.

The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, and the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, branch of the Nigerian Petroleum Development Corporation, NPDC, had on Monday last week shut down exploration activities in the country over the failure of the Federal Government to reverse the transfer of the operatorship of Oil Mining Lease, OML, 42.

He also revealed that the oil workers strike action which lasted for 9 days before it was later called-off after a meeting with the stakeholders in Abuja on Tuesday 25, 2015. He added that due to the strike, about 100,000 barrels of the company’s daily crude oil production is deferred.

Specifically, using the Central Bank of Nigeria’s, CBN, estimate of $66.76 per barrel crude oil price, a shut-in of 100,000 barrel per day amounts to a loss in revenue of N$6.676 million, about N1.335 billion to the country which for nine days is estimated at $60.08million N11.96 billion. The amount lost in terms of revenue to the country does not include revenue due from gas from the oil fields.