Nigeria’s ambition of establishing itself as Africa’s refining hub faces a severe setback as the standoff between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Petroleum Refinery deepens. At the heart of the conflict is the dismissal of more than 800 Nigerian workers, which the union insists were sacked for declaring membership in PENGASSAN.
The shutdown of the refinery, already in effect, could result in losses of about N14.7 billion daily, disrupt supply contracts, and return the country to fuel scarcity. Beyond that, the dispute risks halting crude oil exports worth an estimated $110.8 million per day while forcing gas plants to shut down, with potentially crippling consequences for an economy already under strain.
Gas providers confirmed that supply through the Escravos Lagos Pipeline System has been suspended, leaving operators and customers without access until the dispute is resolved. PENGASSAN, which has directed members nationwide to withdraw services, said Dangote’s move to dismiss Nigerian workers and replace them with foreign labour was a violation of labour laws, the Nigerian Constitution, and international conventions. The association also accused the refinery of imposing some of the harshest working conditions in the oil and gas industry.
Dangote, in its response, described the union’s action as reckless and tantamount to economic sabotage, warning that cutting crude and gas supplies could plunge households, businesses, and industries into hardship. The refinery argued that PENGASSAN was resorting to “bully” tactics that risk destabilising not just one company but the entire economy. It recalled past union opposition to reforms in the sector, accusing the labour group of sabotaging privatisation efforts and celebrating failed rehabilitation projects.
The fallout has polarised stakeholders, with some blaming Dangote for reneging on agreements previously brokered by government mediators, while others accused the union of holding the country to ransom. Analysts warned that the implications could be dire: cutting Dangote’s average supply of 17 million litres of petrol daily could trigger shortages of up to 32 per cent, further inflating food and transport costs.
Energy experts stressed that relying so heavily on a single facility exposes Nigeria to avoidable risks, especially given the unresolved disputes. Some noted that while unions must safeguard workers’ rights, cutting off gas and crude supply was a disproportionate step. Others argued that Dangote, having received extraordinary state incentives, owes Nigerians fair labour practices and accountability.
The Trade Union Congress (TUC) has now joined PENGASSAN in demanding the reinstatement of all affected workers, threatening wider industrial action if their demands are not met. Labour lawyers have also reminded Dangote that workers cannot be lawfully denied the right to unionise.
Government has stepped in, summoning both parties to Abuja for emergency talks. The Minister of Labour, Maigari Dingyadi, confirmed that negotiations will focus on suspending supply disruptions while addressing the contested dismissals. Meanwhile, the Steering Committee of the Naira-for-Crude initiative assured Nigerians that refined product supply will continue and urged restraint from both sides.
But warnings persist that prolonged uncertainty could undermine investor confidence, derail gains in local refining, and worsen inflation. Industry observers fear that the dispute, driven by self-interest on both sides, is pushing ordinary Nigerians to the edge of another fuel crisis.
