Fuel Crisis Looms as PENGASSAN Cuts Gas, Crude Oil Supply to Dangote Refinery
- PENGASSAN has ordered a halt to crude oil and gas supplies to the Dangote Petroleum Refinery, laying several allegations against the company
- The union claims the refinery dismissed employees for unionising and highlighted poor working conditions, wage disparities, and many other claims
- While the refinery denies the allegations, PENGASSAN is calling for government intervention, warning of potential disruptions in the sector
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The dispute between Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has intensified, with the union ordering an immediate suspension of crude oil and gas supplies to the refinery.
This drastic move comes in response to alleged unfair treatment and dismissal of unionised employees by the refinery’s management.
Source: UGC
Dangote Refinery faces supply cut amid labour crisis
In a memo issued by PENGASSAN’s National Secretariat, General Secretary Lumumba Okugbawa accused the Dangote Refinery of retaliating against workers for exercising their legal right to unionise.
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He criticised the company for allegedly avoiding constructive dialogue and instead spreading what the union described as "propaganda" to rationalise its actions.
According to the directive, the Nigeria Gas Infrastructure Company (NGIC) has been instructed to immediately halt gas delivery to the refinery.
Similarly, crude oil valves are to be shut off, and all vessel-loading activities destined for the facility have been suspended. PENGASSAN has asked its local branch leaders to closely monitor and report on the implementation of these directives.
This latest action follows a formal complaint submitted by PENGASSAN’s Dangote Refinery Branch to the union’s Lagos Zonal Council.
The petition, signed by Branch Chairman Abdulfatai Muhammed and Secretary Eseoghene Choice, outlines several grievances, including alleged anti-labour practices, forced staff transfers, poor worker welfare, wage disparities, and a lack of protective equipment.
The union also raised concerns about the dominance of expatriates in leadership positions and the comparatively low wages paid to Nigerian engineers.
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PENGASSAN further contended that these practices violate workers' rights as enshrined in Section 40 of the 1999 Constitution, which guarantees freedom of association, as well as provisions in the Nigerian Oil and Gas Industry Content Development Act of 2010.
In response to earlier accusations, Dangote Refinery denied claims of widespread layoffs or preferential treatment for foreign workers.
The company maintained that over 3,000 Nigerians are employed at the facility and that recent staffing adjustments were part of an organisational restructuring aimed at improving operational efficiency.
It also defended the presence of expatriates, stating that their role is limited to offering technical expertise and facilitating skills transfer.
Source: Getty Images
Despite these assurances, PENGASSAN insists that its concerns remain unresolved and has urged government agencies and regulators to step in.
The union warned that failure to address the dispute could disrupt the oil and gas sector and jeopardise national energy stability.
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The escalating situation has sparked public anxiety, with fears that prolonged disruptions could lead to fuel shortages and a resurgence of fuel queues across the country.
FERA slams PENGASSAN over Dangote Refinery
Meanwhile, the Fair Employment Rights Activists (FERA) has openly criticized the PENGASSAN, describing the union’s allegations against the $20 billion Dangote Petroleum Refinery as “deceptive, self-serving, and insincere.”
FERA accused PENGASSAN leadership of double standards, noting their past involvement in the mismanagement that contributed to the decline of Nigeria’s publicly owned refineries.
The group defended the Dangote Refinery, stating that the facility is already reshaping the nation's economic landscape by disrupting entrenched monopolies and generating new business opportunities throughout the oil and gas value chain.
Source: Legit.ng
