Dangote Refinery vs PENGASSAN: Labour Showdown Threatens Nigeria’s Oil Supply
Nigeria’s energy sector faces fresh turbulence as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has ordered its members nationwide to withdraw their services following the alleged mass dismissal of Nigerian workers by the Dangote Refinery.
The union, in a circular signed by its General Secretary, Comrade Lumumba Okugbawa, after an emergency National Executive Council meeting on Saturday, September 27, 2025, accused the refinery of violating labour laws and international conventions by sacking workers who joined the association.
PENGASSAN alleged that dismissed employees were replaced with “over 2,000 Indians,” describing the move as “an affront to Nigerian workers and the Constitution.”
Union Orders Nationwide Shutdown
The association directed all members to down tools, starting Sunday, September 28, 2025, including those in control rooms, panel operations, and field services. A total nationwide withdrawal of services across oil companies, institutions, and agencies is scheduled for Monday, September 29, 2025.
Branch chairmen in top upstream and midstream oil companies—Chevron, TotalEnergies, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company—have been instructed to immediately cut off crude oil and gas supplies to the refinery.
The union argued that the drastic action was necessary to defend the constitutional right of workers to unionise, accusing Dangote Refinery of “misinformation and propaganda” rather than meaningful dialogue.
Dangote Refinery
Dangote Refinery Hits Back
In response, Dangote Refinery dismissed the allegations of mass layoffs, insisting that only a limited number of staff were affected to protect operations from sabotage. The company stressed that over 3,000 Nigerians remain employed at the refinery, and that workers are free to decide whether to unionise.
The refinery, however, condemned PENGASSAN’s directive to halt crude and gas supplies, labelling it “a brazen, shocking display of lawlessness and criminality.”
The management argued that PENGASSAN has no legal right to disrupt contracts with third-party suppliers, warning that such interference amounts to economic sabotage.
Ripple Effect on Nigerians
Dangote Refinery highlighted that a disruption in crude and gas supply could stall the production of aviation fuel, petrol, diesel, kerosene, and cooking gas, directly impacting households, businesses, and the aviation sector.
The company further stressed that its operations significantly contribute to Nigeria’s revenue base, and that halting production could threaten government revenues at both federal and state levels.
The Bigger Picture
The standoff between Africa’s largest refinery and one of its most powerful oil unions has raised fears of fuel scarcity, higher energy prices, and wider economic disruption.
As the refinery calls on the Federal Government to intervene and “call PENGASSAN to order,” Nigerians are bracing for the fallout of a confrontation that could shake the nation’s oil supply chain.
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