Abuja/Lagos – Nigeria’s ambition to be Africa’s energy powerhouse may be under threat as a bitter labor standoff between Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) deepens. Observers warn that the fallout could lead to daily revenue losses of ₦14.7 billion, supply disruptions, and intensified foreign exchange pressure.
The conflict erupted after Dangote allegedly terminated around 800 Nigerian workers, many of whom the union claims were dismissed after joining PENGASSAN. The union argues the dismissals violate Nigeria’s labor laws and international conventions. In retaliation, PENGASSAN issued a sweeping directive to its branches across the country to halt gas and crude supply to Dangote’s refinery. The union also ordered workers in control room operations, panel operations, and field functions to withdraw services.
As a result, the Dangote Refinery and its associated fertilizer plants are reportedly under full or partial shutdown. PENGASSAN said the refinery unit is “100 percent shut,” while one fertilizer train is fully down and another is operating at 60 percent capacity. Diesel production is still active, though under threat.
If sustained, the shutdown could trigger a cascade of economic problems. The Guardian reports the standoff could cost the country ₦14.7 billion per day via missed fuel exports, domestic sales, and disruption of contracts. The Nigerian Independent System Operator has warned that cutting gas supply could affect thermal power plants, leading to generation shortfalls and threatening grid stability. The refinery has already suspended petrol sales in naira, signaling that local fuel might now be priced in dollars due to crude and foreign exchange constraints. A prolonged stoppage could choke domestic supply chains and bring back fuel queues across Nigeria.
The Federal Government has summoned both parties to an emergency meeting in Abuja, with the Labour Ministry attempting to mediate. Public reaction has been tense, with many Nigerians opposing a nationwide fuel supply disruption that could worsen inflation and hardship.
Dangote, for its part, has denounced the union’s actions as “criminal, reckless and economic sabotage,” warning that supply cuts could jeopardize essential goods, businesses, and households. The company insists the refinery is a national asset that must be defended.
Shopeju Olateju
NaijaTravels News