PENGASSAN Orders Shutdown of Dangote Refinery Amid Worker Termination Dispute in Nigeria

Union Directs Supply Halt to Dangote Refinery

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has issued a directive to its members, instructing them to cease crude oil and gas supplies to the Dangote Refinery in Nigeria. The order, which took effect with field operations withdrawal from September 28, 2025, and a nationwide shutdown from September 29, 2025, is a direct response to the alleged termination of over 800 Nigerian workers by the refinery.

PENGASSAN's General Secretary, Lumumba Okugbawa, stated that the union's action stems from what it describes as 'unjust termination' of its members, who were allegedly dismissed for joining the association. The union further claims that these Nigerian workers were replaced by over 2,000 Indian nationals, many of whom reportedly lack valid immigration documentation.

Allegations of Anti-Labour Practices and Sabotage Claims

PENGASSAN has accused the Dangote Refinery of engaging in 'anti-labour practices' and 'discrimination against local employees,' asserting that the dismissals violate Nigerian labour laws, the Constitution, and International Labour Organisation (ILO) conventions. The union described the refinery's actions as an 'affront to all workers in Nigeria' and a 'deliberate violation' of established labour rights.

In response, Dangote Refinery has denied mass terminations, stating that only a 'few workers' were affected as part of an 'organizational reorganization' aimed at improving safety, efficiency, and productivity. The refinery attributed the dismissals to 'repeated acts of sabotage' in various units, which it claims raised safety concerns and impacted operational efficiency. The company has accused PENGASSAN of 'lawlessness and criminality' and 'economic sabotage' for attempting to disrupt existing supply contracts.

Government Intervention and Potential National Impact

The escalating dispute has prompted intervention from the Federal Government of Nigeria. The Minister of Labour and Employment, Muhammad Dingyadi, appealed to PENGASSAN to suspend its planned strike, emphasizing the critical importance of the petroleum sector to the nation's economy. The Ministry has initiated a conciliation meeting, inviting both PENGASSAN and Dangote Refinery management for discussions on Monday, September 29, 2025, to prevent the crisis from escalating.

The Trade Union Congress of Nigeria (TUC) has also weighed in, condemning the refinery's actions and demanding the immediate and unconditional reinstatement of the sacked workers. TUC Secretary General Nuhu Toro stated that the dismissals breach Section 40 of the Nigerian Constitution and ILO conventions, warning of a potential nationwide strike if their demands are not met.

Concerns have also been raised regarding the broader implications of the strike. The Nigerian Independent System Operator (NISO) warned that a sustained disruption in gas supply could destabilize electricity supply across the country, as the national grid heavily relies on gas-fired generation. Both Dangote Refinery and government officials have cautioned that the shutdown could lead to:

• Widespread fuel scarcity
• Disruption of key petroleum products (petrol, aviation fuel, kerosene, diesel, cooking gas)
• Significant revenue losses for the government
• Adverse impacts on economic stability and national security

PENGASSAN has maintained that the strike will continue until the dismissed workers are reinstated.