PENGASSAN Cuts Crude And Gas Supply To Dangote Refinery Over Labour Dispute

The standoff between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Petroleum Refinery deepened on Saturday after the union ordered oil and gas companies to halt supplies to the $20 billion facility.

In a letter dated September 26, signed by General Secretary Lumumba Okugbawa, PENGASSAN directed seven of its branches in major upstream and midstream firms, including TotalEnergies, Chevron, Seplat, Oando, Shell Nigeria Gas, Renaissance, and the Nigerian Gas Infrastructure Company, to immediately stop crude and gas deliveries to the refinery.

The directive followed allegations that Dangote Refinery sacked some Nigerian workers for joining the union. PENGASSAN accused the company of anti-labour practices, claiming that management not only dismissed employees but also withdrew staff buses and restricted entry to locals while giving expatriates access.

The union warned that it would intensify action, including picketing the facility, if the matter was not resolved. It stressed that the move was to protect the constitutional rights of its members and push back against what it described as unfair treatment.

Dangote Refinery, however, rejected claims of mass layoffs, insisting that more than 3,000 Nigerians remain employed. It explained that only a small number of workers were affected in what it described as a necessary reorganisation aimed at curbing sabotage within the refinery. According to management, repeated acts of sabotage had posed serious risks to lives and operations, making the restructuring unavoidable.

Despite this defence, PENGASSAN dismissed the company’s explanation, accusing it of spreading propaganda rather than engaging in genuine dialogue. The union directed its branches to ensure strict compliance with the order, halting crude supplies, cutting gas flows, and suspending loading operations for vessels bound for the refinery.

The latest development adds to the refinery’s mounting troubles, coming just days after it announced that it would suspend petrol sales in naira from September 28 due to the exhaustion of its crude-for-naira allocation.

The face-off has now raised concerns about disruptions in domestic fuel supply and the stability of Nigeria’s downstream petroleum sector.