Hours after embarking on an indefinite nationwide strike over disputes bordering on revenue allocation and welfare concerns, workers of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have suspended the industrial action.

Yesterday, oil prices jumped and equities struggled as Middle East peace talks stumbled and tensions mounted between Iran and the United States.

The earlier industrial action, led by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), yesterday, disrupted administrative and regulatory operations across the commission’s headquarters in Abuja and its field offices.

Although essential and terminal staff, according to sources that pleaded anonymity, were exempted, regulatory activities critical to upstream operations were significantly affected.

At the centre of the dispute is the controversial cost-of-collection arrangement, particularly the one per cent allocation from NUPRC’s revenue to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The aggrieved workers argue that the arrangement undermines the financial capacity and operational efficiency of the upstream regulator.

Typically, NUPRC retains four per cent as Cost of Revenue Collection (CORC) from the total revenue it generates. In 2024, this amounted to about N279.6 billion. However, under a “gentleman’s agreement” brokered by the Ministry of Petroleum Resources to support the funding needs of NMDPRA, one per cent of this amount is ceded, effectively reducing NUPRC’s share to three per cent. This translates to a loss of approximately N69.9 billion for the commission going by the 2024 financial documents of the NUPRC.

Workers insist that the reduction weakens the agency’s ability to effectively regulate Nigeria’s upstream oil and gas sector. They also accused the commission’s leadership of adopting an operator-style approach to regulation, which they say creates overlaps and inefficiencies within the broader petroleum regulatory framework.

The strike was further triggered by disagreements over staff welfare and training programmes, particularly the decision by management to prioritise local training over foreign programmes.

Partner at Kreston Pedabo, Olufemi Idowu, warned that the commission plays a critical role in approvals, production monitoring, licensing and compliance oversight.

According to him, any disruption could delay key processes such as field development plan approvals, crude evacuation permits and production optimisation initiatives, thereby slowing output growth.

He also noted that uncertainty in regulatory processes could undermine investor confidence, particularly among international oil companies and new entrants who rely on timely approvals and policy clarity.

CRUDE futures shot around seven per cent higher after an Iranian news agency announced that Tehran had suspended the negotiations with Washington via mediators.

The U.S. and Iran had traded strikes over the weekend, and Tehran had insisted that any deal to end the war must cover Israel’s escalating offensive into Lebanon.