The Federal Government on Sunday intervened in the dispute between Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which had threatened to shut down crude oil and gas supply to the $20 billion facility.
The government assured that there would be no disruption in the supply of refined petroleum products nationwide after the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative reviewed developments in the downstream sector.
The meeting, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, came after PENGASSAN directed its members to cut off crude and gas supply to Dangote Refinery over alleged mass sackings and anti-union practices.
In a statement, Mohammed Manga, Director of Information and Public Relations at the Finance Ministry, said other attendees included Budget and Economic Planning Minister Atiku Bagudu, FIRS Chairman Zacch Adedeji, representatives of the NMDPRA, NNPC Limited, CBN, Afreximbank, and Dangote Refinery.
The committee reaffirmed that the crude-for-naira initiative remains in place and pledged urgent action to resolve the refinery–union dispute. “The federal government remains fully committed to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market,” the statement said.
PENGASSAN, in a directive signed by its General Secretary, Lumumba Okugbawa, accused Dangote Refinery of sacking over 800 workers for joining the union. It ordered members to halt all gas supply, crude deliveries, and vessel loading to the refinery effective 12:01 a.m. Monday, September 29, 2025.
The union said the action was necessary to defend workers’ rights, stressing, “An injury to one is an injury to all.” It also instructed members to suspend refinery-related operations except for safety reasons.
Reacting, Dangote Refinery described PENGASSAN’s directive as “a shocking display of lawlessness and criminality,” insisting the union had no legal right to interfere with supply contracts between the refinery and its vendors. “Our laws do not brook self-help and mob action that could easily translate into anarchy,” the company said.
Meanwhile, the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) raised alarm over attempts to destabilise its Petroleum Tanker Drivers (PTD) branch through a group it described as “phony PTD Elders.” NUPENG leaders Williams Akporeha and Afolabi Olawale alleged that “unconscionable capitalists” were sponsoring the faceless forum to mislead the public.
The Nigerian Independent System Operator (NISO) also warned that a disruption in gas supply to Dangote Refinery could affect the national grid, which relies heavily on gas-fired plants. It urged both parties to embrace dialogue in the interest of the economy.
In a related statement, the Concerned Nigerian Consumers Forum called on the federal government and the DSS to investigate PENGASSAN’s actions, warning that its threat could trigger fuel scarcity and economic instability. The group accused the union of contributing to the collapse of Nigeria’s public refineries in the past.
The Trade Union Congress (TUC), however, declared support for PENGASSAN, condemning the alleged anti-labour practices at Dangote Refinery. TUC Secretary General Nuhu Toro demanded the reinstatement of sacked workers, a public apology from management, and an independent probe. The union also placed its affiliates on standby for a possible nationwide strike.
The Dangote Refinery, the world’s largest single-train facility with a capacity of 650,000 barrels per day, employs over 3,000 Nigerians. The company said its recent reorganisation was necessary to address sabotage that threatened operations.
