PENGASSAN Orders Cut-Off Of Fuel, Gas Supply To Dangote Refinery Amid Industrial Dispute

September 27, 2025
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The ongoing industrial dispute between Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) escalated sharply on Saturday, as the union directed seven of its branches to sever crude oil and gas supplies to the $20 billion facility. 

In a letter dated September 26, PENGASSAN accused Dangote’s management of dismissing union members in retaliation for their constitutional right to unionise, labeling the dismissals as unjust and anti-labor.

 The union insisted the refinery’s respons, purportedly framed as a reorganisation or safety measure was a cover for unfair labour practices. 

Under the instruction, branch chairmen in key upstream and midstream companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and the Nigerian Gas Infrastructure Company (NGIC), were commanded to immediately halt all crude oil and gas supplies to Dangote’s facility. 

 The union further directed the NGIC chair to ensure full compliance, demanding prompt reporting on the progress of the order. 

PENGASSAN clarified that the refinery’s management had not only terminated staff but had also removed staff buses, restricted access for local workers, and allowed only expatriates to enter some areas all while propagating “misinformation” rather than engaging in sincere dialogue. “All crude oil supply valves to the refinery should be shut. The loading operation for vessels headed there should be halted,” the directive read. 

In response, Dangote Petroleum defended its actions, asserting that only a limited number of staff were affected by what it described as a restructuring exercise necessary to mitigate the risk of sabotage within the facility. 

The company affirmed that over 3,000 Nigerians remain employed. The management also denied widespread layoffs and insisted that safety concerns justified the reorganisation. 

Observers note that these fresh developments come just days after Dangote announced it would suspend petrol sales in naira from September 28, citing the exhaustion of its crude-for-naira allocations. 

 The confluence of threats to supply, labour strife, and financial pressures looms as a serious challenge to stability in Nigeria’s nascent refining sector.

PENGASSAN has threatened further action, including picketing the refinery if the dispute remains unresolved.

Meanwhile, stakeholders await the next move by both parties and the possible intervention of regulatory bodies.

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