In a dramatic escalation of Nigeria’s energy-sector tensions, the country’s oil union has ordered that crude and gas supplies to the Dangote Petroleum Refinery be suspended immediately. The move is in protest of what the union sees as a wholesale firing of Nigerian employees, many of whom are allegedly replaced by foreign nationals.
Official Statement and Demand
In a directive dated September 26, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) instructed its branches in major oil companies to shut down supply valves and halt vessel loading operations bound for Dangote’s facility.
General Secretary Lumumba Okugbawa authored the missive, warning that “all crude oil supply valves to the refinery should be shut. The loading operation for vessels headed there should be halted immediately.”
PENGASSAN further urged union chapters to report progress promptly on implementing the directive, signaling its desire for a coordinated and sustained pressure campaign.
Rising Dispute and Broader Implications
The conflict erupted after Dangote Refinery reportedly fired several employees, allegedly replacing many with expatriates—primarily from India. PENGASSAN accuses the refinery’s management of “misinformation and propaganda” rather than addressing legitimate grievances over wrongful dismissals.
In response, Dangote rejected the union’s order, labelling it unlawful, criminal in nature, and tantamount to economic sabotage. The company asserts that the layoffs were part of a reorganisation aimed at boosting safety, efficiency and protecting the refinery from acts of sabotage.
Strategic Risks and Regional Fallout
Dangote’s refinery valued around $20 billion—is pivotal to Nigeria’s fuel strategy and macro-economic balance. Already, Dangote announced it would suspend petrol sales in naira, citing crude shortages and foreign-exchange misalignment. Should the supply cut persist, Nigeria risks greater fuel scarcity, price surges, and renewed strain on its fragile foreign exchange reserves.
For Africa at large, the confrontation underscores how labor unrest in a key energy exporter can ripple across the continent—disrupting trade, inflating costs, and challenging regional energy security.
At present, no government mediation is publicly reported, and both sides appear entrenched. As tensions rise, all eyes will be on whether Nigeria’s oil union and Dangote management yield space for negotiation or if this represents a protracted clash with serious consequences for consumers across Africa.
