Workers of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have called off their indefinite nationwide strike, just hours after it began, over disputes concerning revenue allocation and welfare issues. The industrial action, led by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), had disrupted administrative and regulatory operations at the commission's headquarters in Abuja and its field offices.
Strike Suspension and Impact
The strike, which started on Monday, targeted the controversial cost-of-collection arrangement, specifically the one per cent allocation from NUPRC's revenue to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Workers argued that this arrangement undermines NUPRC's financial capacity and operational efficiency. Essential and terminal staff were exempted, but regulatory activities critical to upstream operations were significantly affected.
Revenue Allocation Dispute
Typically, NUPRC retains four per cent as Cost of Revenue Collection (CORC) from total revenue generated. In 2024, this amounted to approximately N279.6 billion. However, under a "gentleman's agreement" brokered by the Ministry of Petroleum Resources, one per cent of this amount is ceded to NMDPRA, reducing NUPRC's share to three per cent. This translates to a loss of about N69.9 billion for the commission, based on 2024 financial documents. Workers insist this reduction weakens the agency's ability to regulate Nigeria's upstream oil and gas sector effectively.
Welfare and Training Concerns
The strike was also triggered by disagreements over staff welfare and training programmes. Management's decision to prioritise local training over foreign programmes was a key point of contention. Workers accused the commission's leadership of adopting an operator-style approach to regulation, creating overlaps and inefficiencies within the broader petroleum regulatory framework.
Expert Warnings
Partner at Kreston Pedabo, Olufemi Idowu, warned that the commission plays a critical role in approvals, production monitoring, licensing, and compliance oversight. He noted that any disruption could delay key processes such as field development plan approvals, crude evacuation permits, and production optimisation initiatives, thereby slowing output growth. Uncertainty in regulatory processes could also undermine investor confidence, particularly among international oil companies and new entrants who rely on timely approvals and policy clarity.
Broader Context
Meanwhile, crude futures shot around seven per cent higher after an Iranian news agency announced that Tehran had suspended negotiations with Washington via mediators. The U.S. and Iran had traded strikes over the weekend, and Tehran insisted that any deal to end the war must cover Israel's escalating offensive into Lebanon.
