FG Steps in as PENGASSAN Strike Threatens Dangote Refinery Operations
RYNI News | Omotayo Stephen . O
30 September 2025

Nigeria’s fragile energy sector is once again in the eye of a storm as the federal government waded into a high-stakes confrontation between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Petroleum Refinery. At the heart of the dispute lies the alleged dismissal of over 800 workers for attempting to unionise—an action the labour body insists violates both the Nigerian Constitution and international labour conventions.
What began as murmurs of discontent escalated dramatically over the weekend, with PENGASSAN issuing a sweeping directive to its affiliates: halt crude oil and gas supplies to the $20 billion Dangote Refinery. By early Monday, operations in key control rooms, loading terminals, and outfield facilities were reportedly suspended as union members enforced the strike.
The move sent shockwaves across the country, raising fears of supply disruptions and renewed fuel scarcity. Though the refinery is yet to reach peak capacity, its sheer scale—touted as the world’s largest single-train refining facility—means any paralysis has implications far beyond its Lekki base.
In response, the federal government swiftly convened a closed-door meeting in Abuja. The Minister of Labour and Employment, Mohammed Dingyadi, alongside his deputy, Nkiruka Onyejeocha, hosted representatives of both warring parties. PENGASSAN’s delegation, led by President Festus Osifo, locked horns with senior Dangote executives behind closed doors, even as Nigerians braced for the wider economic fallout.
The Dangote Group has rejected accusations of anti-union victimisation, describing PENGASSAN’s actions as “a brazen display of lawlessness”. Management insists that the disengagement of staff was part of an internal reorganisation aimed at curbing sabotage, strengthening safety protocols, and streamlining refinery operations. The company maintains that contracts with crude and gas suppliers are private agreements and outside the jurisdiction of PENGASSAN’s directives.
But the union remains unyielding. General Secretary Lumumba Okugbawa accused Dangote of “embarking on a mission of misinformation and propaganda” rather than engaging constructively. At its emergency National Executive Council meeting on September 27, the union resolved to down tools nationwide effective September 29, with a warning that no intervention would be entertained except where safety was at risk.
The fallout has been swift. The Nigerian Independent System Operator (NISO) raised alarms about the implications for the national grid, which relies heavily on gas-fired generation. “Any sustained disruption in gas supply could undermine the stability of electricity supply across the country,” NISO cautioned.
Meanwhile, the Trade Union Congress (TUC) has thrown its weight behind PENGASSAN, branding Dangote’s alleged sackings as an “assault on workers’ dignity” and threatening broader industrial action unless the refinery reinstates the affected employees.
Civil society voices have entered the fray too. The Concerned Nigerian Consumers Forum accused PENGASSAN of undermining a critical national asset, pointing to the union’s historic role in the decline of state-owned refineries.
As the government scrambles to broker peace, Nigerians watch anxiously. A prolonged shutdown could choke fuel supply chains, destabilise power generation, and trigger fresh economic shocks. Yet beneath the clash lies a deeper battle—between the rights of workers to organise and the determination of Africa’s richest man to run his refinery on his own terms.
For now, the nation holds its breath as Abuja mediates. The refinery that was meant to symbolise energy independence may instead become the epicentre of Nigeria’s latest labour war.
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