The standoff between Dangote Petroleum Refinery and PENGASSAN intensified on Saturday, September 27, 2025, as the union directed its branches to halt crude oil and gas supplies to the $20 billion facility.
PENGASSAN accused the refinery of unlawfully dismissing union members who exercised their right to unionize, describing the action as anti-labour and unlawful.
Key Developments:
- PENGASSAN’s Directive: The union instructed its branches in major oil and gas companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and the Nigerian Gas Infrastructure Company, to immediately cut off all crude oil and gas supplies to the refinery.
- Dangote Refinery’s Response: The refinery denied allegations of mass sackings, stating that only a small number of workers were affected by a restructuring exercise aimed at preventing sabotage. Over 3,000 Nigerians remain employed at the facility.
- Potential Consequences: The standoff raises concerns about Nigeria’s energy sector, with potential disruptions in supply that could delay expectations of easing dependence on imported fuel and stabilizing local prices.
Implications for Nigeria’s Energy Sector:
- Market Pressures: Prolonged disruption in supply could tighten market pressures and impact the country’s economy.
- Labour Relations: The outcome of this case may shape future labour relations between private mega-investors and organised labour in Nigeria’s strategic industries.
Dangote Refinery’s Warning:
- Fuel Scarcity: The refinery warned that PENGASSAN’s directive could plunge the nation into fuel scarcity, trigger hardship for millions of households, and damage Nigeria’s investment image.
- Economic Sabotage: The refinery described PENGASSAN’s action as “economic sabotage” and “lawless,” urging the Federal Government to intervene and call the union to order.”
