Crisis Brews as PENGASSAN Orders Shutdown of Dangote Refinery Supply

The $20 billion Dangote Petroleum Refinery is facing a significant labour crisis following an order by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) directing its members across seven major oil and gas companies to halt crude oil and gas supplies to the facility.

The dispute centers on the dismissal of 800 workers, who the union claims were sacked for exercising their constitutional right to join PENGASSAN. The union further accused the refinery of employing illegal Indian expatriates in sensitive roles and discriminating against Nigerian engineers, alleging that local engineers earn N385,000 monthly while their foreign counterparts receive over $5,000.

In response to the mass layoffs, PENGASSAN instructed employees in TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance, and the Nigerian Gas Infrastructure Company to immediately shut all supply valves and halt operations for vessels delivering crude and gas to the refinery. The union said it would convene an emergency National Executive Council meeting to determine the next steps, which could include a nationwide strike if the sacked workers are not reinstated and alleged injustices addressed.

Dangote Refinery, however, condemned the union’s directive, describing it as criminal, lawless, and an act of economic sabotage. In a statement, the company accused PENGASSAN of planning to deny Nigerians access to essential petroleum products, including petrol, diesel, kerosene, aviation fuel, and cooking gas. Dangote said there is no law granting the union the authority to disrupt supply contracts between the refinery and its vendors and warned that such actions threaten both national interests and investor confidence.

The company emphasized that the refinery is a strategic national asset and that any disruption could cause widespread hardship for Nigerians. Dangote called on the Federal Government and the public to resist the move, stressing that the union’s directive could halt production and supply of critical fuels across the country.

The crisis comes amid a separate controversy over Dangote Refinery’s brief suspension of fuel sales in naira. On Friday, the refinery’s commercial operations arm announced that it would only accept payments in dollars starting 28 September, citing overselling against its naira-crude allocations. Following intervention from the Naira-for-Crude Technical Committee, chaired by Finance Minister Wale Edun, the refinery reversed its decision and confirmed that naira-based sales had resumed.

As the situation unfolds, the Nigeria Labour Congress continues to monitor developments, while neither the Ministry of Labour and Employment nor the Trade Union Congress has issued an official statement.