In a sharp escalation of the labour dispute, Dangote Petroleum Refinery has forcefully rejected a directive by the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) calling for a shutdown of crude oil and gas supplies to the refinery.
In its statement, the refinery labeled the union’s order “criminal, lawless and economic sabotage,” warning that enforcing it would cripple operations and plunge Nigeria into fuel scarcity.
The brewing conflict stems from recent mass dismissals of workers at the 650,000 barrels-per-day facility, allegedly for union membership and “reorganisation” under operational pretexts. The union claims Dangote replaced unionised Nigerian workers with foreign personnel.
PENGASSAN’s memo, signed by its General Secretary Lumumba Okugbawa, instructed branch chairmen in major oil companies—such as Total Energies, Chevron, Seplat, Shell Nigeria Gas, Oando, and NGIC—to:
- Shut off crude oil supply valves to Dangote Refinery
- Halt loading operations of vessels bound for the facility
- Cut gas supply flow immediately
Dangote’s rebuttal strongly contested the union’s legal standing, arguing that no law empowers PENGASSAN to interfere with existing supply contracts between the refinery and third-party vendors. “Absolutely no law gives PENGASSAN the right to direct its branches to cut off gas and crude oil supplies to Dangote Refinery,” the management insisted. the refinery warned of imminent fuel scarcity, price hikes, and revenue losses for government coffers. It also urged Federal Government intervention to avert large-scale hardship.
Dangote further emphasized that its supply contracts were legally binding and independent of the union. The company warned that interference would not only hurt its operations but also harm millions of Nigerians who rely on fuel products for daily life.
The standoff comes at a critical moment, with the refinery also announcing a halt in petrol sales in naira from September 28 due to crude supply constraints.
As both sides dig in, the question looms: will the conflict escalate into a broader fuel crisis?
