Nation on Edge as Dangote – PENGASSAN Rift Escalates

The rift between Dangote Refineries and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has grown into one of the most consequential disputes in Nigeria’s oil and gas industry in recent memory. What began as a round of layoffs inside the country’s most ambitious refinery project has now spiraled into a nationwide strike that exposes not just the fragility of labour relations but also the dangerous dependence of an entire economy on a single player.

The spark was lit on September 26th, when Dangote Refineries laid off a number of workers. PENGASSAN insists the number of laid off workers exceeded 800 and that the layoffs were not random but targeted at union members. The union accuses the company of replacing Nigerian employees with more than 2,000 Indian workers, an act they frame as a betrayal by a company that has benefitted immensely from state incentives and taxpayer resources. On September 27, PENGASSAN’s National Executive Council gathered in an emergency session. Its conclusion was uncompromising: Nigerian workers had been humiliated and the law flouted. The order went out that all members were to withdraw their services over the following two days, including gas and crude supply to Dangote’s refinery which were to be withdrawn immediately. The call was not limited to the refinery alone but  across the sector, framed as a collective struggle in which the pain of one worker must be borne by all.

The implementation was swift. Offices and security control rooms across compliant companies were sealed off. The Trade Union Congress (TUC) aligned with PENGASSAN’s position, demanding reinstatement of the laid off workers, a public apology, and a full governmental investigation into Dangote’s practices. The union’s president, Festus Osifo, sharpened the attack further, describing Aliko Dangote himself as the saboteur of Nigeria’s economy and reminding the public of the privileges the state had extended to him, from import licenses to subsidised foreign exchange that enabled the construction of the refinery. The National Labour Congress (NLC) has also mobilised its members for a nationwide strike. In the words of former PENGASSAN president Brown Ogbiefun, the matter is larger than labour rights alone; it is about whether a single company should be allowed to monopolise the refining of petroleum in a country where oil remains the economic backbone.

Dangote Refineries has refused to take these accusations lying down. In a statement pointedly titled “Lawless PENGASSAN: Its Lies and Terror Tactics,” the company denied the scale of the layoffs and rejected claims of ethnic replacement. Management insisted that only a small number of staff had been affected and that over three thousand Nigerians remain in active employment at the refinery. The company explained that the decision to part ways with certain workers was linked to repeated sabotage, which it argued had endangered lives and compromised efficiency. Framing the dismissals as a safety measure rather than an anti-union purge, Dangote positioned itself as both a victim and a protector of national interests.

The statement also widened the historical lens, recounting instances in which PENGASSAN had opposed the company’s ventures and allegedly disrupted broader industry reforms, from the controversial sale of the Port Harcourt and Kaduna refineries in 2007 to campaigns against the reform of the Petroleum Industry Act of 2021. The refinery challenged PENGASSAN to prove its contribution to Nigeria’s development and even dared the union to publish its financial accounts from the last decade. For Dangote, the current episode is just the latest in a long pattern of hostility.

While the war of words rages, the real consequences are already being felt. Dangote Refineries announced on September 27th that it would suspend petrol sales in naira, citing the exhaustion of its crude-for-naira allocation. Customers were asked to request refunds, a reminder that the refinery’s decisions ripple quickly through the downstream sector. Earlier in the year, a similar suspension had pushed pump prices close to ₦1,000 per litre, stoking fears of dollarisation in fuel transactions. This time around, analysts warn prices could again climb beyond ₦900, destabilising households and businesses already stretched by inflation.

The economic danger lies not just in higher fuel costs but in the concentration of refining capacity in one company’s hands. Energy experts have warned that the shutdown of Dangote Refineries could result in a daily national loss of ₦14.7 billion, with wider ripple effects amounting to over $110 million in lost crude export revenue. Gas supply disruptions threaten to shut down power plants, raising the spectre of nationwide blackouts. The Nigerian Independent System Operator (NISO)  has already cautioned that grid stability could collapse if the strike continues. The Concerned Nigerian Consumers Forum (CNCF) has described the situation as economic sabotage that risks worsening scarcity and creating a fresh wave of instability.

The episode has drawn in government mediators. Labour Minister Muhammad Dingyadi has appealed for calm, urging PENGASSAN to reconsider its strike and inviting both sides to an emergency meeting. Yet trust is scarce, and neither side appears willing to concede ground. For PENGASSAN, the fight is about protecting workers from exploitation and ensuring that Nigeria does not become hostage to corporate dominance. For Dangote, the struggle is about defending its reputation and securing operational stability against what it views as union intimidation.

Between the accusations of sabotage, the counter-allegations of lies, and the nationalist undertones about who truly serves Nigeria’s interest, what emerges clearly is the precariousness of the country’s reliance on a single refinery. Dangote’s mega project was celebrated as the answer to decades of fuel import dependence, but the present crisis shows that centralising such critical infrastructure in one company leaves the nation vulnerable. The dispute is no longer just about workers or management; it is about whether Nigeria’s energy future can be entrusted to a monopoly without sufficient safeguards. If this standoff drags on, the cost will not be measured only in billions lost but in the collective anxiety of a nation whose economic lifeline has been tied too tightly to one source.