Nigeria’s fragile energy sector is bracing for fresh turmoil after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) launched a nationwide strike on Monday, halting crude oil and gas supplies to the Dangote Petroleum Refinery and forcing power firms to prepare for widespread blackouts.
The move, which follows the dismissal of more than 800 refinery workers, threatens to send petrol prices soaring and plunge homes and businesses into darkness. Thermal power stations, which generate more than 70% of the country’s electricity, have begun shutting down after gas suppliers received instructions to cut output in line with the strike order.
In a resolution signed by general secretary Lumumba Okugbawa, PENGASSAN accused the refinery of flouting labour laws and ILO conventions by sacking workers for joining the union and replacing them with foreign staff. “All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the union declared.
PENGASSAN’s president, Festus Osifo, confirmed on Sunday that the strike had forced a shutdown of the refinery and fertiliser plant, warning there would be no retreat unless the workers were reinstated. “We will not surrender unless the affected workers are re-employed,” he said.
Oil marketers have warned that disruption of crude supply will destabilise fuel prices and deepen inflationary pressures. “Disruption of crude and gas supply will trigger fuel price hikes and worsen power shortages,” said Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria. He urged the federal government to intervene swiftly, warning of “unnecessary galloping inflation” if the impasse drags on.
Power firms also sounded the alarm. “Please all be notified of imminent darkness, as hydros alone cannot sustain the system,” wrote Joy Ogaji, head of the Association of Power Generation Companies, after thermal plants received shutdown notices.
The standoff has polarised opinion. The Trade Union Congress backed PENGASSAN, demanding reinstatement of the sacked workers and an independent probe. But consumer groups accused the union of weaponising hardship, describing the strike as “a desperate attempt” to undermine the $20bn refinery.
Dangote Industries dismissed the accusations as reckless, insisting the layoffs were driven by safety and efficiency concerns, not union activity. “The Dangote Group is the highest employer of labour in Nigeria and the highest contributor to tax revenues,” the company said in a statement, accusing PENGASSAN of sabotage.
The labour minister, Muhammad Dingyadi, has convened an emergency meeting in Abuja in a last-ditch effort to broker peace. But with fuel distribution disrupted, thermal plants offline, and tensions escalating, the coming days may prove decisive in determining whether Nigeria can avert a crippling energy crisis.
