Nigeria’s senior oil workers’ union has ordered an immediate halt to crude and gas deliveries to the $20 billion Dangote Petroleum Refinery, escalating a labour dispute that threatens the nation’s fuel supply. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) issued the directive in a letter dated September 26, instructing its members across major oil companies to enforce the shutdown without delay.
General Secretary Lumumba Okugbawa directed that supply valves to the refinery be closed and vessels bound for the facility prevented from loading. The union accused the refinery of spreading “misinformation” rather than addressing the wrongful dismissal of unionised staff, which has sparked widespread outrage.
The row began after Dangote confirmed the dismissal of several employees last week. While the company claimed the affected staff were involved in sabotage and that the move was necessary for safety and efficiency, union leaders alleged that more than 800 Nigerian workers were sacked and replaced largely by foreign nationals, many from India.
In response, Dangote Petroleum Refinery rejected PENGASSAN’s action, stating that the union had no legal authority to cut crude or gas supply to the facility. The company also argued that contractual agreements with suppliers were outside the union’s jurisdiction.
The refinery, which is Africa’s largest single-train facility and a central part of Nigeria’s strategy to reduce fuel imports, has already signalled market strains. It announced plans to suspend petrol sales in naira from September 28, citing crude shortages and foreign exchange challenges. Analysts caution that the dispute may tighten supply, raise pump prices, and exert more pressure on Nigeria’s fragile currency.
PENGASSAN has instructed its chapter leaders to report on compliance with the directive, raising the possibility of a coordinated shutdown that could ripple across the country’s downstream oil sector. Industry observers warn that a prolonged standoff could cripple operations at the refinery and frustrate efforts to stabilise Nigeria’s fuel supply.
