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Friday, December 5, 2025

Tensions escalate: PENGASSAN orders shutdown of gas and crude supply to Dangote Refinery

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In a major escalation of its ongoing dispute with the Dangote Petroleum Refinery, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has ordered its members to halt all gas and crude oil supply to the facility with immediate effect.

The directive follows the alleged dismissal of 800 union members by the refinery’s management. In a letter signed by PENGASSAN’s General Secretary, Lumumba Okugbawa, the union accused the company of retaliating against workers for exercising their constitutional right to unionize.

PENGASSAN claims that the refinery is replacing sacked Nigerian workers with over 2,000 foreign nationals, predominantly from India. However, in a swift response, Dangote Refinery denied the allegations. In a statement released on Friday, the company said it was merely reorganizing its workforce to prevent “repeated acts of sabotage.” It emphasized that over 3,000 Nigerian workers remain employed and that the company remains committed to international labor standards, including the right to union membership.

Despite the company’s denial, PENGASSAN insists the mass termination was a direct result of workers choosing to join the union. The union has now directed all its members — particularly those at the Nigerian Gas Infrastructure Company (NGIC) — to immediately cease gas supply to the refinery. It has also called for an immediate shutdown of all crude oil supply valves and a suspension of vessel loading operations bound for the facility.

Part of the union’s statement reads:

“The Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to being unionised.

They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.

Consequently, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the Refinery should be shut. The loading operation for vessels headed there should be halted.”

The union instructed its local branch leaders to monitor and report back on the execution of the shutdown directive.

With the multibillion-dollar Dangote Refinery still in its early operational stages, this labor crisis could significantly disrupt its momentum and affect the nation’s energy supply chain.

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