Dangote Risks Gas Supply Cut as Labour Dispute Boils Over

September 27, 2025

Nigeria’s most ambitious private oil project, the Dangote Petroleum Refinery, is reeling from a fast-deepening labour crisis after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) late Friday night ordered an immediate cut-off of gas and crude oil supplies to the multi-billion-dollar facility.

In a directive that sent shockwaves through the energy sector, PENGASSAN instructed its members across the gas and oil supply chains to halt all deliveries to the refinery, including the shutdown of crude valves and suspension of vessel loading operations.

The union said the drastic measure followed the “unjust termination” of over 800 Nigerian workers and their alleged replacement with more than 2,000 Indian nationals, many reportedly lacking valid immigration documents.

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The late-night order marks the sharpest escalation yet in a dispute that has been building all week. On Thursday, PENGASSAN accused Dangote management of breaching the Labour Act and the Trade Union Act by dismissing workers shortly after they unionised.

General Secretary Comrade Lumumba Ighótemu condemned the refinery’s actions as “capitalistic exploitation” and vowed that the union would pursue every legal avenue if the sacked workers are not reinstated.

READ ALSO: Analyst Accuses NUPENG of Economic Sabotage Over Dangote Refinery Dispute

Dangote Refinery Sackings Deepen Labour Showdown Despite Management’s Denial

Dangote Management Pushes Back

In a statement issued Friday, Dangote Petroleum Refinery rejected accusations of anti-union bias, saying the dismissals were part of a “limited reorganisation” triggered by “intermittent acts of sabotage” that threatened safety and operations.

“Only a very small number of staff were affected, as we continue to recruit Nigerian talent through our graduate trainee and experienced hire programmes,” management said, adding that more than 3,000 Nigerians remain employed at the facility. The company reaffirmed its recognition of workers’ right to unionise but stressed the need to protect the refinery from security risks.

National Stakes Rise

The gas shutoff raises immediate concerns for Nigeria’s energy security. The refinery, already battling repairs to its gasoline unit, could see production grind to a halt if the disruption persists, potentially leading to fuel shortages and price hikes across the country.

Labour ministry officials are expected to summon both sides for emergency talks this weekend as the federal government comes under pressure to enforce labour laws while safeguarding fuel supply.

What began as an internal labour disagreement has now become a nationwide flashpoint, testing Nigeria’s ability to balance workers’ rights, immigration oversight, and the stability of a refinery once celebrated as a cornerstone of the country’s energy independence.

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Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.

Amanze Chinonye

Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.

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