The $20bn Dangote Petroleum Refinery has been thrown into a deepening labour crisis following an order by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) directing its members across major oil and gas firms to cut off crude oil and gas supply to the facility.
The union’s directive, issued on Saturday, came after the dismissal of about 800 workers allegedly sacked for joining PENGASSAN. The refinery was also accused of importing illegal expatriates and engaging in discriminatory wage practices.
According to PENGASSAN, while Nigerian engineers at the refinery earn about N385,000 monthly, their Indian counterparts reportedly receive over $5,000 (approximately N7.5m).
… Union Orders Shutdown
PENGASSAN’s General Secretary, Lumumba Okugbawa, in a memo to members in companies including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance, and the Nigerian Gas Infrastructure Company, instructed the immediate suspension of crude and gas supplies to Dangote Refinery.
“All crude oil supply valves to the refinery should be shut. Loading operations for any vessel headed to the refinery should be halted immediately. Injury to one is injury to all,” the directive read.
Union insiders said that an emergency National Executive Council meeting was being convened to decide on further action, including the possibility of a nationwide strike if Dangote fails to reinstate the sacked workers.
“This isn’t just about Dangote anymore—it’s about setting a precedent,” a senior PENGASSAN official said.
… Dangote Reacts, Accuses Union of Sabotage
The management of Dangote Refinery swiftly condemned the union’s directive, describing it as criminal, lawless, and a direct attempt to inflict hardship on Nigerians.
In a statement issued on Saturday, the company said PENGASSAN’s action was designed to disrupt the supply of essential products such as petrol, diesel, aviation fuel, kerosene and cooking gas.
“In plain language, PENGASSAN has directed its branches to disrupt and stop the supply of petroleum products from the Dangote refinery to Nigerians. In what circumstance would it be justified to introduce such insufferable hardship? None that we can see,” the company said.
It further argued that no law empowers the union to interfere with contracts between the refinery and its vendors, stressing that Nigeria is governed by laws and not “mob action.”
“This is economic sabotage against both Nigerians and the state. Dangote Refinery is a strategic national asset, and such directives constitute a national embarrassment,” the statement added.
… Tensions Over Naira Payments
The refinery was also recently caught in a storm over its decision to suspend naira payments for fuel.
In a notice sent to customers late Friday, the refinery announced it would only accept dollar payments from September 28, citing unsustainable sales beyond its naira-crude allocations.
However, following the intervention of the Naira-for-Crude Technical Committee chaired by the Minister of Finance, Wale Edun, the refinery reversed the decision and resumed sales in naira.
“We are pleased to inform you of the resumption of PMS sales in naira commencing immediately,” the company told customers in a fresh notice.
… Government, Labour Mum
Efforts to obtain comments from the Ministry of Labour and Employment, the Nigeria Labour Congress, and the Trade Union Congress President, Festus Osifo, were unsuccessful.
Analysts warn that if not urgently resolved, the dispute could trigger fuel scarcity across the country and dampen investor confidence in Nigeria’s energy sector.
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