A major industrial crisis is unfolding in Nigeria’s oil and gas sector as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has embarked on a nationwide strike, following the dismissal of more than 800 workers by the Dangote Petroleum Refinery. The union described the mass sack as a violation of labour rights and accused the refinery of targeting employees who had joined or sought to join the association. Dangote, however, defended its decision, saying the move was part of a reorganisation aimed at protecting the company from sabotage and internal threats.
The strike action has forced the withdrawal of PENGASSAN members from strategic energy institutions, including the Nigerian National Petroleum Company (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). As a result, operations at these critical offices have been suspended, raising fears of wider disruptions across the country.
Already, the impact is being felt nationwide. Power generation has slumped to nearly half of normal capacity, with electricity output dropping to about 2,700 megawatts. Crude oil exports have also been hit, with daily losses estimated at more than 110 million US dollars. In Abuja and other cities, black market petrol sellers have resurfaced as filling stations shut down, with some hawkers selling 10 litres of petrol for as high as ₦15,000. The NNPC has warned that the situation, if not quickly resolved, poses a material threat to Nigeria’s energy security.
The federal government has stepped in to mediate, appealing to the union to call off the strike while dialogue continues. A reconciliation meeting involving government officials, the Dangote Group, and union leaders has been convened, though initial talks ended in deadlock. The National Industrial Court has also issued an injunction restraining PENGASSAN from disrupting crude and gas supplies, but the union insists that it was not properly served with the order. Dangote has urged government agencies to enforce compliance, describing the strike as unlawful and damaging to national interests.
The dispute has quickly escalated beyond a simple labour disagreement into a full-scale national crisis. Analysts warn that the longer it drags on, the more severe the economic consequences will become, with supply chains disrupted, investor confidence shaken, and inflationary pressures worsened.
