PENGASSAN Halts Crude, Gas Supply to Dangote Refinery Amid Industrial Dispute

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has ordered the suspension of crude oil and gas supplies to the $20 billion Dangote Petroleum Refinery following an escalating labour dispute with the management of the facility.

In a directive issued on Saturday by its General Secretary, Lumumba Okugbawa, the union instructed seven of its branches, including those in TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando and the Nigerian Gas Infrastructure Company, to cut off supply channels to the Lekki-based refinery.

According to PENGASSAN, the directive became necessary after the refinery allegedly dismissed and victimised some of its members for union activities, an action the association described as an infringement on workers’ rights.

The union warned that if the situation persists, it would not only sustain the supply cut but also move to picket the refinery.

However, the management of Dangote Refinery has denied allegations of mass layoffs or victimisation. It explained that the recent restructuring was aimed at safeguarding operations, preventing sabotage and ensuring the safety of its workforce.

The company insisted that over 3,000 Nigerians remain employed at the facility and dismissed claims that expatriates were being favoured over local staff.

Labour activists under the Fair Employment Rights Activists (FERA) also faulted PENGASSAN’s position, noting that their fact-finding mission found no evidence of illegal replacement of Nigerian workers with foreigners.

The refinery, which recently announced the suspension of petrol sales in naira due to crude supply constraints, now faces additional operational disruptions that could impact fuel availability and pricing in Nigeria.

The federal government is expected to intervene in the standoff, given its potential implications for the energy sector, industrial relations and national economy.