Anti-labour practices: We won’t be silenced, NUPENG declares

Nigeria's petroleum workforce is entering a confrontational phase. At its 6th Quadrennial Delegates' Conference in Lagos, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG)—one of Africa's most strategically positioned industrial unions—signalled unwavering resistance to what leadership branded as systematic anti-labour abuses within the upstream and downstream energy sectors.

**Why NUPENG's stance matters to energy investors**

NUPENG represents approximately 50,000 workers across Nigeria's oil and gas value chain, from production platforms to refineries and distribution networks. When NUPENG mobilizes, the entire sector feels friction. The union's declaration represents more than rhetorical posturing; it signals intent to weaponize strike action, work stoppages, and industrial action if grievances remain unaddressed. For foreign operators and local energy majors—already managing supply chain volatility—union militancy introduces operational risk that compounds currency instability and regulatory uncertainty.

The timing is acute. Nigeria's crude output remains fragile, hovering around 1.5 million barrels per day (down from 2+ million in 2020). Production losses to pipeline vandalism, theft, and maintenance shutdowns already cost the economy billions annually. A coordinated NUPENG action could crater output further, tightening global crude supply and triggering price volatility that reverberates through African commodity markets.

## What specific labour practices triggered NUPENG's defiance?

NUPENG's grievances centre on wage stagnation, inadequate hazard allowances, unsafe working conditions on deepwater platforms, and union recognition disputes. The union alleges that multinational operators—Shell, ExxonMobil, TotalEnergies, and smaller independents—have systematized cost-cutting that shifts risk onto workers. NUPENG also cited instances where contractors replace permanent unionized staff with non-unionized freelancers, effectively weakening collective bargaining power.

The 2023 fuel subsidy removal and naira devaluation eroded purchasing power across Nigeria's working class. Energy sector wages, despite being relatively competitive, have not kept pace with inflation (currently ~34% year-on-year). NUPENG is demanding adjustment clauses tied to consumer price indices and alignment with regional wage benchmarks.

## How does this intersect with Nigeria's energy transition ambitions?

This labour standoff arrives as Nigeria attempts to rebrand itself as an energy transition hub. The government's "Renewed Hope" agenda includes investment in gas infrastructure, renewable capacity, and downstream modernization. But transition requires workforce stability and investor confidence. Industrial discord signals neither.

Operators cannot credibly commit to long-cycle projects—floating production storage offloading (FPSO) leases, gas liquefaction expansions, or offshore drilling campaigns—if labour relations remain volatile. Capital flight accelerates when union risk is perceived as unmanageable.

## What's next for stakeholders?

Dialogue is essential but historically difficult in Nigerian energy labour. Past NUPENG actions (2016, 2020) caused production losses exceeding 500,000 barrels per day. Without negotiated settlement on wages, safety standards, and union representation, the risk of another action cycle before Q3 2025 is material.

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