Nigerians may face tougher days ahead as the nationwide strike declared by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), beginning from today (Monday), threatens to unleash a twin blow of soaring petrol prices and widespread electricity blackouts.
The union’s directive to halt crude oil and gas supplies to the Dangote Petroleum Refinery has sent shockwaves through the energy sector, with oil marketers warning of severe disruptions in fuel distribution. This move is expected to choke the domestic market, driving up demand and prices.
Compounding the crisis, power generation companies have announced a complete shutdown of all thermal plants, a direct fallout of the strike. With thermal stations producing more than 70 per cent of Nigeria’s power supply, the development threatens to plunge the nation into darkness, crippling economic activities and plunging millions of households and businesses into deeper strain—unless the Federal Government intervenes.
On Sunday, PENGASSAN announced a nationwide strike, instructing all its members in various offices, companies, institutions, and agencies to cease all services starting at 12:01 am on Monday, 29 September 2025.
The union also directed members stationed in various field locations to down tools from 6:00 am on Sunday, 28 September, and commence a round-the-clock prayer vigil. The emergency decision followed the sack of over 800 Nigerian workers at the Dangote Petroleum Refinery.
In a strongly worded resolution by PENGASSAN General Secretary, Lumumba Okugbawa, the union accused the refinery of violating Nigerian labour laws and International Labour Organisation conventions by sacking workers for joining the union. It alleged the dismissed workers had been replaced by foreigners.
‘All processes involving gas and crude supply to Dangote Refinery should be halted immediately’, the resolution declared. ‘All IOC (International Oil Companies) branches must ramp down gas production and supply to Dangote Refinery and petrochemicals’.
The union also accused military personnel of blocking its members from cutting gas supplies to the facility. Speaking on Channels Television on Sunday, PENGASSAN President Festus Osifo confirmed that the Minister of Labour and Employment, Muhammadu Dingyadi, had summoned a meeting between both parties for Monday.
Osifo disclosed that the strike directive had already forced a total shutdown of the refinery and fertiliser plant, though the diesel plant was still operating as of Sunday evening. He warned that there would be no retreat unless the dismissed workers were reinstated. ‘We will not surrender unless the affected workers are re-employed by Dangote’, Osifo declared.
Reacting to the directive, the Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that the disruption could destabilise fuel prices, erode investment confidence, and worsen Nigeria’s fragile electricity supply.
‘There is no market stability and no return on investment’, IPMAN National Publicity Officer Chinedu Ukadike said. ‘Disruption of crude and gas supply will trigger fuel price hikes and worsen power shortages’.
He added: ‘The directive by PENGASSAN to stop the supply of crude and gas to the refinery would definitely affect the market. Marketers may now be forced to consider importing products, which means the Nigerian Midstream and Downstream Petroleum Regulatory Authority will have to issue import licences to DAPPMAN members to augment the shortfall’.
He warned that unless the Federal Government acts swiftly, the crisis could spiral into higher pump prices and ‘unnecessary galloping inflation’ that would further squeeze Nigerians. ‘I believe a proactive Federal Government, through the Minister of Petroleum, will quickly intervene to ensure these lapses do not destabilise the economy’, he added.
Ukadike further urged the Minister of Petroleum to immediately cut short his foreign trip and return home to broker peace. ‘The last time there was an issue with NUPENG, the minister was also out of the country, but he aborted the trip and came back to resolve it. I expect him to do the same with this issue’, he stressed.
Similarly, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, raised the alarm that gas suppliers had instructed GenCos to halt production.
‘Thermal GenCos have received notification from our gas suppliers to shut down our thermal power plants following directives from PENGASSAN. The Nigerian Gas Infrastructure Company has specifically requested GenCos to comply. Please all be notified of imminent darkness, as hydros alone cannot sustain the system’, she wrote in a message.
With thermal stations accounting for more than 70 per cent of Nigeria’s electricity supply, it is expected that the shutdown will trigger widespread outages, stretch hydro plants beyond capacity, and heighten the risk of a nationwide system collapse.
She added that the Escravos-Lagos Pipeline System II, which supplies natural gas to the Dangote Petrochemical Plant under the Willing Price Producers Path, has been shut down. ‘We heard ELPS is already shut, only gas left in it is the Line Packed, no incoming since morning’.
Meanwhile, stakeholders concerned with the dispute have called for a peaceful resolution to avert further escalation. The Forum of Concerned Nigerian Consumers urged the Federal Government and the Department of State Services to wade k knowinto what it described as ‘desperate attempts:?’ by the Petroleum and Natural Gas Senior Staff Association of Nigeria to undermine the multi-billion-dollar facility.
At a press conference in Abuja, the forum accused the oil workers’ union of playing politics with Nigeria’s fragile energy sector following its threat to picket the $20 billion refinery over alleged mass sackings.
Forum President, Olabisi Taiwo, said Nigerians must see through the plot, warning that the action could plunge the country back into fuel scarcity and economic instability.
The Nigerian Independent System Operator also expressed concern, warning that sustained disruption could undermine grid stability and cause collapse. ‘The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations, and undermine the stability and reliability of electricity supply across the country’, it stated.
The Trade Union Congress (TUC) threw its weight behind PENGASSAN, condemning the refinery’s management for violating workers’ rights. TUC Secretary-General Nuhu Toro demanded reinstatement of all sacked workers, a public apology, and an independent probe. The TUC also placed all affiliates on red alert for possible nationwide action.
Meanwhile, the Minister of Labour and Employment, Muhammad Dingyadi, appealed to the union to withdraw its strike declaration to allow for peaceful conciliation. ‘A strike will not only lead to revenue losses but also hardship for Nigerians’, he warned.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also urged dialogue, while consumer groups accused PENGASSAN of politicising the energy sector and warned of dire consequences for ordinary Nigerians.
In its response, Dangote refinery accused PENGASSAN of sabotage and selfish interests, citing its past opposition to reforms and privatisation efforts. The company described the strike order as ‘reckless, lawless and dangerous’, stressing that it was designed to weaponise hardship against Nigerians.
It insisted the dismissals were based on safety and efficiency concerns, not anti-union victimisation, adding that more than 3,000 Nigerians remain employed at the facility.
‘The Dangote Group is the highest employer of labour in Nigeria and the highest contributor to tax revenues’, the company said. ‘PENGASSAN should publish its own audited accounts and show what it has contributed to national development’.
With the Dangote refinery and fertiliser plant shut down, and thermal power stations halting operations, the strike poses a severe test for Nigeria’s economy and government. Analysts warn that prolonged industrial action could destabilise fuel supplies, trigger blackouts, and stoke inflationary pressures.
All eyes are now on Monday’s emergency meeting convened by the Minister of Labour. Whether dialogue can restore calm or whether Nigeria plunges deeper into crisis may depend on the willingness of both sides to compromise.
