On September 27, 2025, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ordered its members to cut gas and crude deliveries to the Dangote Petroleum Refinery, igniting a nationwide strike that began at 06:00 GMT on September 28.
Background: The rise of local refining
When Devakumar Edwin, vice‑president of Dangote Group announced in 2024 that the $20 billion refinery would start commercial operations, many saw it as a game‑changer for Nigeria’s chronic fuel imports. With a capacity of 650,000 barrels per day (bpd), the plant can produce roughly 44 million litres of gasoline daily—enough to cover a third of national demand.
Historically, PENGASSAN (the "steel backbone" of the labour movement) exercised de‑facto control over fuel logistics by coordinating supply from the state‑run Nigeria National Petroleum Corporation (NNPC) to downstream terminals. The new refinery threatened that monopoly, prompting a tense undercurrent that would later erupt.
Strike initiation and immediate actions
At 06:00 on September 28, 2025, PENGASSAN members in oil‑field operations shut down pipelines, while office staff joined the walk‑out later that morning. Protesters blocked the NNPC headquarters in Abuja, preventing staff from entering the building. The union’s directive violated Nigerian law, which classifies energy supply as an essential service that requires a 15‑day notice, mediation, and court approval before any strike can commence.
Legal experts cited in the YouTube documentary "PENGASSAN: The Union That Broke Nigeria" argued that the union ignored those procedural safeguards, labeling the move "lawless". Dangote Group echoed the sentiment in a statement obtained by Argus Media: "An irreparable injury to the Dangote refinery such as PENGASSAN has directed constitutes a national embarrassment to us all."
Sabotage, layoffs, and the dispute over numbers
Edwin disclosed that since commissioning, the refinery has suffered 22 separate sabotage incidents—vandalism, pipeline tampering, and unexplained equipment failures that have raised safety concerns. In response, Dangote announced on September 26 that a "small number of workers" would be dismissed as part of an ongoing reorganisation aimed at curbing the acts. The union, however, claimed more than 800 employees were terminated, a discrepancy that intensified public debate.
During a tour of the site with Bubaraye Dakolo, king of Ekpetiama Kingdom and chairman of the Bayelsa Traditional Rulers Council (Bayelsa Traditional Rulers Council), Edwin warned that continued sabotage could push the plant’s petrol‑producing unit into a prolonged shutdown, potentially lasting into 2026.
Government mediation and political pressure
Labour Minister Muhammad Musa Dingyadi urged PENGASSAN to withdraw the strike and invited both sides to an emergency meeting on September 28. Junior Labour Minister Nkeiruka Onyejeocha stressed that while workers’ grievances were legitimate, the strike could not "derail Nigeria's energy security and economic progress".
Upstream regulator chief executive Gbenga Komolafe appealed for calm, stating, "Parties should just refrain from what could cause disruptions in energy supply." The Trade Union Congress (TUC), Nigeria’s largest labour coalition, instructed affiliated unions to stand ready to join the strike in solidarity, demanding that Dangote recall the dismissed workers and issue a public apology.
After intense negotiations, the federal government brokered a tentative settlement. On October 1, 2025, PENGASSAN agreed to begin the process of calling off the strike, while Dangote pledged to redeploy the sacked staff to other subsidiaries within the group.
Impact on Nigeria’s fuel supply and economy
According to a Bloomberg report cited by Legit.ng, the refinery sharply cut its crude purchases, planning to buy fewer than 300,000 bpd in October—just half of the 600,000 bpd it imported in July. The decline reflects both the sabotage‑related shutdown of the petrol unit and the uncertainty created by the labour dispute.
Industry analysts warn that reduced domestic refining capacity could push Nigeria back toward import dependence, raising fuel prices and straining foreign exchange reserves. The refinery’s contribution of $2.2 billion in annual export earnings also puts a dent in the country’s balance of payments.
- Dangote refinery capacity: 650,000 bpd
- Daily gasoline output: 44 million litres
- Sabotage incidents since 2024: 22
- Crude purchases projected for Oct 2025: < 300,000 bpd
- Potential export earnings loss: up to $1 billion per year
The strike also exposed a shift in labour leverage. With more than half of Nigeria’s petrol now sourced from domestic refineries, PENGASSAN’s historic ability to “lock a few valves” and paralyse the nation is weakening.
Future outlook and what to watch
The immediate crisis appears contained, but the underlying issues linger. If sabotage continues, the refinery’s repair timetable could stretch well into 2026, risking prolonged supply gaps. Moreover, the legal debate around essential‑service strikes may spur legislative reforms, potentially tightening the government’s hand in future labour disputes.
Watch for:
- Official court rulings on the legality of PENGASSAN’s strike.
- Updates from the upstream regulator on sabotage investigations.
- Dangote Group’s strategy for restoring full crude procurement volumes.
- Any renewed mobilisation by the TUC or other unions.
Ultimately, how quickly the refinery returns to full‑scale production will determine whether Nigeria can sustain its push toward energy independence or revert to the old import‑reliant cycle.
Frequently Asked Questions
How does the strike affect gasoline prices for ordinary Nigerians?
With the Dangote refinery cutting crude purchases by half, domestic gasoline output is expected to drop by roughly 20‑30 %. That shortfall typically pushes pump prices up by 10‑15 % in the short term, especially in Lagos and Abuja where demand is highest.
What legal consequences could PENGASSAN face for ignoring the 15‑day notice rule?
The Labour Act allows courts to impose fines up to ₦5 million per day of illegal strike activity. Additionally, senior union officials could be barred from holding office for a period of up to two years if the court deems the breach intentional.
Why have sabotage incidents risen since the refinery started operations?
Experts point to a mix of local grievances, criminal gangs eyeing oil infrastructure, and lingering resentment from communities that felt bypassed during the project’s planning phase. The refinery’s location in the Niger Delta, a historic hotspot for oil‑related unrest, compounds the risk.
What steps is Dangote Group taking to prevent future sabotage?
Dangote announced a new security partnership with a multinational firm, boosting surveillance, drone patrols, and community‑engagement programmes. The company also pledged to increase local hiring to give residents a stake in the refinery’s success.
Will the government introduce new legislation on essential‑service strikes?
Parliamentary committees are already reviewing the Labour Act. A draft amendment proposing stricter notice periods and mandatory arbitration for energy‑sector disputes is expected to be tabled early next year.
Raj Chumi
October 17, 2025 AT 21:55What a catastrophic mess for Nigeria's fuel future!