The Dangote Petroleum Refinery is facing a major labor crisis following the order by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for its members across seven oil and gas firms to halt all crude oil and gas supplies to the massive facility.
The refinery, on the other hand, condemned the command, describing it as criminal, lawless, and economic sabotage.
The layoff of 800 workers, according to the union, occurred after they exercised their constitutional right to join PENGASSAN.
The union said that the refinery flew in illegal Indian expats to work in Nigeria’s sensitive energy industry.
It further accused the refinery of salary discrimination, disclosing that while Nigerian engineers earned N385,000 per month, their Indian counterparts received upwards of $5,000 (roughly N7.5 million).
In response to the widespread layoffs, PENGASSAN issued a closure directive on Saturday for its branches in major oil and gas corporations such as TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance, and the Nigerian Gas Infrastructure Company.
The General Secretary of PENGASSAN, Lumumba Okugbawa, instructed the immediate stoppage of gas and crude supply to Dangote Refinery.
“All crude oil supply valves to the refinery should be shut. Please pause all loading operations for any vessel en route to the refinery immediately. Injury to one is injury to all,” the memo stated.
PENGASSAN also stated that it would convene an emergency National Executive Council meeting to deliberate on the next phase of action.
Sources confirmed that discussions centered on a potential nationwide strike should Dangote fail to reinstate the sacked workers and address the alleged injustices.
“Should they fail to reverse this barbaric action, the union will have no choice but to act,” said one senior union official. “This isn’t just about Dangote anymore—it’s about setting a precedent.”
In response to the directive, Dangote accused the union of trying to restrict Nigerians’ access to petrol, diesel, and cooking gas.
In a statement on Saturday, the company said, “Apart from the lawlessness and criminality inherent in the PENGASSAN’s instruction to its branches, the association’s directive amounts to economic sabotage at multiple levels. In plain language, PENGASSAN has directed its branches to disrupt and stop the supply of petroleum products from the Dangote refinery to Nigerians.
“The products that would be disrupted and stopped include but are not limited to aviation fuel, petrol, kerosene, diesel, and cooking gas—all products that are used and required by all stripes of Nigerians and persons living in Nigeria, whether high and mighty or lowly and ordinary.
“In what circumstance 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 Dangote Refinery described the directive as a brazen display of criminality.
“Absolutely no law gives PENGASSAN the right to direct its branches to ‘cut off’ gas and crude oil supplies to Dangote Refinery or at all. There is also no law in our statute books that would support or enable the PENGASSAN branches having to cut off gas and crude oil supplies to Dangote Refinery or at all.
“Besides, it constitutes criminal conduct for PENGASSAN or its members to disrupt and/or interfere in any way whatsoever with the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil to the refinery.
“These supply contracts were not entered into with PENGASSAN; they were entered into by Dangote refinery with third-party vendors and suppliers, and PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts,” it was stated.
The management of the Dangote Refinery insisted Nigeria is governed by law and not mob action.
“Perhaps, PENGASSAN needs to be reminded that Nigeria is a country governed by laws. Our laws do not brook self-help and mob action that could introduce mayhem and chaos and easily translate into anarchy.
“It is instructive that no sooner had the association issued a press release than it abandoned the path of lawfulness and embraced criminal conduct and the path that leads to mayhem and anarchy by issuing the directive aforementioned,” the statement alleged.
The Dangote refinery stated that the direction was economic sabotage against both Nigerians and the state, asking in whose interest and on whose behalf PENGASSAN is “directing and intending to inflict such anarchic and criminal disruption upon the Nigerian society and persons living in Nigeria.”
The corporation emphasized that the refinery was a critical national asset that needed to be protected.
“This is also economic sabotage against the Nigerian state at multiple levels. Dangote refinery is the only refinery of its type in Africa and ordinarily should be the pride of all Nigerians as well as the government of Nigeria. It should ordinarily have special protection and status and indeed qualifies as a strategic national asset.
“An irreparable injury to the Dangote refinery such as PENGASSAN has directed constitutes a national embarrassment to all of us. The directive is a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery to contemplate investing in Nigeria’s oil and gas sector or generally, it stated.
The Dangote refinery, which is one of the main donors to the government’s income purse, stated that its contribution was under threat from PENGASSAN and would be suspended if the instruction was executed.
The refinery urged the federal government and Nigerians to oppose the move.
“PENGASSAN has no right to introduce anarchy and mayhem into our society. The association is not above the law, and it must not be allowed to believe that it is or behave as if it is. We are also calling on all Nigerians to take note of the unquantifiable and irredeemable hardship that PENGASSAN wishes to inflict on all of us.
“There is no Nigerian household that does not use or need the petroleum products that PENGASSAN has now directed its branches, by fiat, to withdraw from the Nigerian market. Again, we list some of them: petrol, cooking gas, diesel, kerosene, and aviation fuel.
“The production and supply of these products by Dangote Refinery would cease if the PENGASSAN cabal is allowed or permitted to enforce its lawless and criminal directive. The association must not be allowed to ride roughshod over Nigerians. The repercussions from the PENGASSAN directive would affect and inflict harm on all Nigerians. This is therefore a fight for all Nigerians,” the statement added.
