Union threatens to cut gas and crude supply as refinery warns of economic sabotage
The standoff between Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) took a dramatic turn at the weekend, with threats from the oil workers’ union to halt gas supply to the $20 billion facility, and an equally fierce response from the refinery accusing the association of criminality and economic sabotage.
On Saturday, PENGASSAN directed some of its members to cut off gas flow to the refinery, a move that could paralyze operations at Africa’s largest oil processing plant. Gas is a critical fuel source that powers several of the refinery’s key equipment, and a disruption could affect the production and supply of essential petroleum products including petrol, diesel, aviation fuel, kerosene, and cooking gas.
In a letter addressed to its members, the union reportedly instructed them to shut all crude oil supply valves to the refinery, halt vessel loading operations, and ensure that gas supply was terminated without delay. The letter further demanded that local chairmen of its branches report on the progress of these directives.
The association said its decision stemmed from the dismissal of some of its members by the refinery’s management, which it described as unjust and discriminatory. PENGASSAN accused Dangote of favoring foreign workers at the expense of Nigerians and insisted that the disengagement violated provisions of the Labour Act. The union warned that unless all sacked Nigerian workers were reinstated, it would be forced to escalate the matter further using all constitutional and legal means available.
Dangote Petroleum Refinery, however, hit back in strong terms, condemning the union’s directive as unlawful and reckless. In a statement released by its management, the refinery said PENGASSAN has no legal authority to interfere in contracts between the refinery and its third-party vendors for the supply of crude oil and gas.
“This is a brazen and shocking display of lawlessness. Absolutely no law gives PENGASSAN the right to direct its branches to cut off gas and crude oil supplies to Dangote Refinery,” the statement said. “Such actions amount not only to criminal conduct but also to economic sabotage that would affect every Nigerian household.”
The refinery warned that the directive, if implemented, would cripple the supply of vital petroleum products across the country, plunging millions of citizens into untold hardship. It emphasized that aviation fuel, petrol, kerosene, diesel, and cooking gas—all staples of daily life and critical for industries—would be unavailable if the union’s threats materialized.
“In what circumstances would it be justified for PENGASSAN to so disrupt and introduce insufferable hardship into the living conditions of Nigerians? None that we can see,” the management said, adding that the move was “most certainly not in the interest of the Nigerian state or its citizens.”
The refinery further described PENGASSAN’s action as “economic sabotage against the Nigerian state at multiple levels” and urged the federal government, security agencies, and regulators to intervene swiftly. It called on authorities to prevent what it described as an attempt to unleash anarchy and mayhem on the Nigerian economy.
“This is a fight for all Nigerians,” the refinery stressed. “The association must not be allowed to ride roughshod over the law, and its leaders must remember that they are not above the law. PENGASSAN should pursue any grievances through legal action rather than criminal directives.”
The clash escalated after the refinery terminated the appointments of some workers earlier in the week. The management insisted that the decision was not arbitrary but a necessary step to safeguard operations from repeated acts of sabotage that threatened safety and efficiency. In a letter signed by its Chief General Manager, Human Asset Management, Femi Adekunle, staff were informed that their services were no longer required effective September 25.
“This exercise is not arbitrary. It has become necessary to safeguard the refinery from repeated acts of sabotage that have raised safety concerns and affected operational efficiency,” the company said in its official statement confirming the sack.
PENGASSAN, however, maintains that the dismissals were unjust and discriminatory, reiterating that Nigerian workers deserve protection, dignity, and respect in their workplace. The union vowed to take every legal measure to defend its members, insisting that Dangote must recall the affected workers.
With both sides refusing to back down, concerns are rising over potential disruptions to fuel supply across the country. Observers warn that if the standoff escalates further, it could deepen Nigeria’s energy woes, disrupt transportation and industry, and exacerbate the cost-of-living crisis already weighing heavily on millions of citizens.
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