Nigeria’s fragile energy sector faces fresh turmoil as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) commenced a nationwide strike on Monday, raising fears of soaring fuel prices and widespread power outages.
The industrial action, which took effect from 12:01 a.m. on September 29, 2025, was triggered by the dismissal of more than 800 Nigerian workers at the Dangote Petroleum Refinery. PENGASSAN accused the refinery of violating labour laws and International Labour Organisation conventions, alleging that the sacked workers were replaced with foreign nationals.
In a resolution signed by its General Secretary, Lumumba Okugbawa, the union directed members across oil firms, agencies, and field locations to halt all services. It also ordered the suspension of crude oil and gas supply to the Dangote Refinery and related petrochemical facilities.
“The strike will not end until the affected workers are reinstated,” PENGASSAN President Festus Osifo declared during a televised interview on Sunday, confirming that the directive had forced the shutdown of the refinery and fertiliser plant.
Marketers Warn of Supply Disruptions
The Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed concern that the disruption could destabilise fuel supply, push up pump prices, and worsen inflation.
“There is no market stability and no return on investment,” said IPMAN’s National Publicity Officer, Chinedu Ukadike. “Stopping crude and gas supply will certainly affect the market. Marketers may be forced to import products, which means the regulator must issue new import licences to bridge the gap.”
Ukadike urged the Minister of Petroleum to immediately intervene, warning that the crisis could trigger “galloping inflation” and prolonged scarcity.
Electricity Blackouts Loom
The Association of Power Generation Companies also sounded the alarm, revealing that gas suppliers had instructed thermal plants to shut down operations.
“Thermal GenCos have received notices from suppliers to halt production. Please be prepared for imminent darkness, as hydropower alone cannot sustain the system,” Executive Secretary Joy Ogaji said in a statement.
With thermal stations accounting for over 70 percent of Nigeria’s electricity generation, industry experts fear prolonged blackouts if the dispute lingers. The Nigerian Independent System Operator cautioned that sustained disruption could destabilise the national grid.
Dangote, Labour Unions Trade Blame
While the Trade Union Congress (TUC) backed PENGASSAN’s demands for reinstatement and a public apology from the refinery, the Dangote Group rejected the accusations, describing the strike as “reckless and dangerous.”
The refinery maintained that the layoffs were linked to safety and efficiency concerns, not anti-union victimisation, stressing that more than 3,000 Nigerians remain employed at the facility.
“The Dangote Group is the largest employer of labour in Nigeria and a major contributor to tax revenues. PENGASSAN’s actions amount to sabotage,” the company stated.
Government Steps In
Minister of Labour and Employment, Muhammadu Dingyadi, has convened an emergency meeting between the parties in Abuja, urging the union to suspend the strike and embrace dialogue.
“A strike at this time will not only disrupt revenue but also deepen hardship for millions of Nigerians,” the minister warned.
Analysts Weigh In
Energy analysts say the standoff could have far-reaching implications for fuel availability, electricity supply, and inflation if it is not swiftly resolved. With both sides holding firm, attention now shifts to whether Monday’s negotiations will ease tensions or plunge the country deeper into an energy crisis.
