The $20 billion Dangote Petroleum Refinery has been plunged into a heated labour conflict following a directive from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), instructing its members in seven major oil and gas companies to suspend all crude oil and gas supplies to the facility.
At the centre of the dispute lies the termination of about 800 workers who, according to PENGASSAN, were dismissed for joining the association, a move the union described as a violation of their constitutional rights.
Allegations of Discrimination and Foreign Labour
The association accused the refinery of importing unapproved expatriates, particularly Indian nationals, to oversee Nigeria’s critical energy infrastructure. The union further alleged discriminatory wage practices, disclosing that Nigerian engineers were paid ₦385,000 monthly, while expatriates earned as much as $5,000 (approximately ₦7.5 million).
Shutdown Directive
In response, PENGASSAN’s General Secretary, Lumumba Okugbawa, issued a memo mandating an immediate halt to all crude and gas supplies destined for 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 stated.
This instruction extended to operations in companies such as TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance, and the Nigerian Gas Infrastructure Company.
okay.ng reports that the union is also planning an emergency National Executive Council meeting to determine further steps, including the possibility of a nationwide strike if its demands are ignored.
Dangote Refinery’s Response
The refinery strongly condemned the union’s directive, describing it as “criminal, lawless and economic sabotage.” In a statement, the company warned that such action could paralyze the supply of essential petroleum products such as petrol, diesel, aviation fuel, kerosene, and cooking gas to millions of Nigerians.
“Absolutely no law gives PENGASSAN the right to direct its branches to cut off gas and crude oil supplies to Dangote Refinery at all,” the management said. “This is also economic sabotage against the Nigerian state at multiple levels. Dangote refinery is the only refinery of its type in Africa and should be the pride of Nigerians.”
The management stressed that the refinery is a strategic national asset, urging Nigerians and the government to resist any action that could jeopardize its operations.
Naira Payment Crisis Averted
Meanwhile, the refinery had earlier announced plans to suspend payments in naira for petrol sales starting September 28, 2025. However, following the intervention of the Naira-for-Crude Technical Committee chaired by the Minister of Finance, Wale Edun, the company confirmed that transactions in naira had resumed.
