Dangote Refinery Crisis: PENGASSAN Ignites Nationwide Strike Over Mass Worker Sackings
A seismic labor showdown grips Nigeria’s oil sector as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) launches a nationwide strike, slamming Dangote Refinery for allegedly sacking over 800 Nigerian workers and replacing them with foreign hires. The bold move, kicking off with field shutdowns on Sunday and a full blackout from Monday, threatens fuel scarcity, power outages, and economic chaos in Africa’s largest economy.
This PENGASSAN nationwide strike over Dangote Refinery sackings erupts amid accusations of labor law violations and “enslavement” of locals, with the union vowing no retreat until full reinstatement. As crude and gas supplies halt, the Federal Government scrambles for intervention, highlighting the refinery’s pivotal role in Nigeria’s energy independence.
The Spark: Alleged Mass Sackings at Africa’s Mega-Refinery
The crisis detonated on September 24, 2025, when Dangote Refinery issued dismissal letters to around 800 staff, citing “alleged sabotage” that endangered the 650,000-barrel-per-day facility’s operations. PENGASSAN fired back, claiming the firings targeted union members in retaliation for organizing, breaching Nigeria’s Constitution, labor laws, and International Labour Organisation (ILO) conventions.
Union General Secretary Lumumba Okugbawa lambasted the refinery for “subjecting Nigerians to the worst working conditions” while importing over 2,000 Indian workers to fill the voids. “This is disloyalty to a nation that granted unprecedented taxpayer incentives,” the union thundered in a September 27 circular, labeling it an “affront to all workers.”
Dangote’s $20 billion plant, Africa’s biggest, has churned out diesel and aviation fuel since early 2025, slashing imports and stabilizing prices. Yet, labor tensions simmered, with prior clashes over safety and rights.
Timeline of the Tensions
- September 24: Refinery sacks staff amid sabotage probes.
- September 27: PENGASSAN’s emergency NEC meeting declares indefinite strike.
- September 28 (6 a.m.): Field workers down tools, crude/gas supplies cut.
- September 29 (12:01 a.m.): Total nationwide shutdown.
PENGASSAN even mandated 24-hour prayers for divine intervention to “rein in Dangote and his co-travelers.”
Union Mobilizes: Shutdown Orders and Escalation Risks
In a fiery directive, PENGASSAN commanded members across oil firms, power plants, and agencies to halt operations, explicitly targeting Dangote’s supply chain. “All processes involving gas and crude supply to Dangote Refinery must cease immediately,” the circular warned, barring interventions unless safety demands it.
The stakes? Catastrophic. Nigeria relies on gas for 80% of its electricity; a prolonged strike could trigger blackouts, factory closures, and fuel queues reminiscent of 2023 shortages. International Oil Companies (IOCs) face orders to ramp down production, rippling through exports.
The Trade Union Congress (TUC) signaled solidarity, potentially amplifying the action. PENGASSAN’s clout—representing thousands in upstream and downstream—makes this a national powder keg.
Dangote’s Fierce Denial
Dangote Refinery hit back hard, dismissing claims of mass sackings as “exaggerated” and framing the moves as an “internal reorganization for efficiency.” A spokesman insisted most workers remain Nigerian and accused PENGASSAN of “sabotage attempts” that endangered lives. “This strike is an act of terror,” the company blasted, vowing legal recourse.
The refinery, operational since January 2025, has exported products to Europe, but domestic woes now threaten its momentum.
Government Rushes In: Emergency Talks to Avert Meltdown
The Federal Government leaped into action, with Labour Minister Muhammad Dingyadi convening an emergency conciliation meeting for Monday, September 29. “A strike here cripples the economy and inflicts suffering on Nigerians,” Dingyadi urged, pleading for suspension to enable dialogue.
As of Sunday evening, no suspension was confirmed, with PENGASSAN digging in: “An injury to one is an injury to all.” X buzzed with #PENGASSANStrike, from workers’ pleas for justice to fears of fuel hikes. One post lamented: “Dangote’s incentives from us, but loyalty to foreigners?”
Experts warn of broader fallout, echoing 2018 ASUU strikes that cost billions.
Voices from the Frontlines: Outrage and Warnings
Okugbawa rallied: “We won’t let this enslavement stand.” On X, users decried “neo-colonialism in our backyard,” with #RecallDangoteWorkers trending. Dangote loyalists countered: “Sabotage threats are real—safety first.”
Analysts like those at Nairametrics predict short-term panic buying, but praise government mediation as key to de-escalation.
Why This Rocks U.S. Interests: Energy, Investments, and Echoes
For American stakeholders, the PENGASSAN nationwide strike over Dangote Refinery sackings reverberates through global energy markets. U.S. firms like Chevron supply crude to Dangote; disruptions could spike West African exports, hiking gasoline prices at U.S. pumps amid 2025’s volatile oil rally.
Economically, Nigeria’s $400 billion oil sector anchors U.S. investments—over $10 billion from ExxonMobil alone—risking delays in refinery expansions that promised cheaper imports. Politically, it spotlights labor tensions in emerging markets, mirroring UAW strikes’ supply chain hits. Lifestyle woes? Higher jet fuel from Dangote’s aviation output could nudge airfares for U.S. travelers to Africa.
Technologically, the row underscores AI-monitored safety in refineries, a boon for U.S. tech exports. Sports fans draw parallels: Like NBA lockouts halting seasons, this could bench Nigeria’s energy game.
As PENGASSAN digs in and Monday’s talks loom, this Dangote crisis teeters on resolution or rupture. Swift reinstatement could restore flows and faith; stalemate risks scarcity and scrutiny, testing Nigeria’s labor pacts and global energy bets. With stakes sky-high, all eyes turn to Abuja—where words must outpace walkouts to keep the lights on.
By Sam Michael
September 29, 2025
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