The $20bn Dangote Petroleum Refinery is locked in a major labour crisis after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ordered its members across seven oil and gas firms to halt all crude oil and gas supplies to the facility.
The union’s directive, issued by General Secretary Lumumba Okugbawa, followed the sack of 800 workers allegedly dismissed for joining PENGASSAN. The association also accused the refinery of flying in “illegal Indian expatriates” and enforcing discriminatory wages, with Nigerian engineers earning ₦385,000 monthly compared to expatriates reportedly receiving over $5,000 (₦7.5m).
“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,” PENGASSAN declared in a memo.
Union sources told Sunday PUNCH that an emergency NEC meeting is being planned, with a possible nationwide strike on the table if the refinery fails to reinstate the sacked workers.
Dangote Hits Back
Dangote Refinery, however, slammed the directive as “criminal, lawless and economic sabotage.”
In a strongly worded statement on Saturday, the company accused the union of plotting to cut Nigerians off from vital petroleum products, including aviation fuel, petrol, kerosene, diesel and cooking gas.
“Absolutely no law gives PENGASSAN the right to cut off crude or gas supply to Dangote Refinery. This is mob action that could translate into anarchy. It is economic sabotage against both Nigerians and the state,” the statement read.
The refinery described itself as a strategic national asset that should be protected, warning that disruption would discourage investors and hurt government revenue.
Wider Implications
PENGASSAN’s shutdown order was extended to branches in TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance, and the Nigerian Gas Infrastructure Company.
The Nigeria Labour Congress (NLC) is monitoring developments, while the Trade Union Congress (TUC), PENGASSAN’s parent body, has yet to issue a formal response.
Meanwhile, in a separate notice, the refinery informed customers that from September 28, 2025, it would suspend payments in naira for fuel, a policy that could further escalate tensions.
