Dangote refinery dispute intensifies as PENGASSAN orders crude and gas supply cuts, citing alleged sack of unionised workers

Dangote refinery dispute escalated dramatically on Saturday as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ordered seven branches to cut crude oil and gas supplies to the $20 billion Dangote Petroleum Refinery.

Also read: PENGASSAN threatens Dangote Refinery over mass sackings

In a letter dated September 26, General Secretary Lumumba Okugbawa accused the refinery management of dismissing union members in retaliation for exercising their constitutional right to unionise.

The union claimed management also withdrew staff buses and restricted local employees’ access while allowing expatriates in.

The directive targets branches in major upstream and midstream oil companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company (NGIC). PENGASSAN threatened to picket the refinery if the situation was not resolved.

Dangote Petroleum Refinery responded on Friday, saying the alleged sack affected only a small number of workers as part of a reorganisation aimed at preventing sabotage within the facility.

The company confirmed that over 3,000 Nigerians remain employed and rejected claims of mass layoffs.

Management described the restructuring as necessary due to recurring sabotage incidents that posed risks to human life and operations.

Despite the refinery’s clarification, PENGASSAN instructed its branches to cut gas and crude oil supplies immediately.

The union described the refinery’s actions as “illegitimate” and accused management of spreading misinformation rather than engaging in dialogue.

The union’s directive stated, “NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately.

All chairmen on this summons are to report promptly the progress of the directive… Injury to one! Injury to all!”

Adding to the tension, Dangote Petroleum Refinery announced it would suspend petrol sales in naira from September 28 due to the exhaustion of its crude-for-naira allocations.

Also read: Dangote Refinery lays off Nigerian workers within 24 hours of joining PENGASSAN

The escalating Dangote refinery dispute underscores rising tensions between labour unions and management in Nigeria’s oil and gas sector, with both sides warning of further disruptions if the matter is not resolved.