Dangote Refinery faces labour crisis as PENGASSAN halts crude and gas supply over mass sackings, sparking fears of fuel shortages in Nigeria

The $20bn Dangote Petroleum Refinery is at the centre of a major labour dispute after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ordered members in seven oil and gas companies to suspend crude oil and gas supplies to the facility.

Also read: Dangote Refinery Reorganises Workforce Over Sabotage

The shutdown directive followed the dismissal of 800 workers, whom the union claimed were sacked for joining PENGASSAN.

It further alleged the refinery engaged “illegal Indian expatriates” while discriminating against Nigerian staff, paying local engineers N385,000 monthly compared with over $5,000 (about N7.5m) for expatriates.

 PENGASSAN shuts valves

In a memo issued on Saturday, PENGASSAN’s General Secretary, Lumumba Okugbawa, instructed branches in TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance and the Nigerian Gas Infrastructure Company to stop all 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 leaders hinted at the possibility of a nationwide strike if Dangote fails to reinstate the workers. The Nigeria Labour Congress is monitoring the standoff, while the Trade Union Congress, to which PENGASSAN is affiliated, has yet to issue a statement.

Dangote accuses union of sabotage

Dangote Group rejected the union’s directive, describing it as “criminal, lawless and economic sabotage.”

In a statement, the company warned that PENGASSAN’s actions could deny Nigerians access to fuel, diesel, kerosene, aviation fuel and cooking gas.

“Absolutely no law gives PENGASSAN the right to cut off gas and crude oil supplies to Dangote Refinery. It is a brazen display of criminality and an affront to the Nigerian state,” the refinery said.

It stressed that the 650,000-barrels-per-day refinery was a strategic national asset, warning that disruption would inflict hardship on Nigerians and deter foreign investors.

Currency row adds pressure

The crisis deepened after the refinery briefly announced a suspension of naira payments for petrol sales, citing excess exposure on naira-for-crude allocations. Customers were advised to seek refunds, fuelling panic among marketers.

However, following the intervention of a government-led Naira-for-Crude Technical Committee chaired by Finance Minister Wale Edun, the refinery reversed its decision and confirmed that naira transactions had resumed.

Outlook

As PENGASSAN prepares for an emergency NEC meeting, fears are growing that the standoff could spark nationwide fuel shortages if not urgently resolved.

Also read: DAPPMAN Urges Dangote Refinery to Cut Fuel Prices

The Federal Government has yet to comment publicly, though pressure is mounting for a mediated settlement between the parties.