Nigeria is bracing for fuel price hikes and widespread blackouts as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) begins a nationwide strike today (Monday), halting crude oil and gas supply to the Dangote Petroleum Refinery.
Oil marketers and power generation companies have warned of severe disruptions, with thermal stations—which generate over 70% of the country’s electricity—already ordered to shut down. The strike, they cautioned, could paralyse economic activities, worsen inflation, and plunge millions of homes into darkness unless urgent intervention is made.
The crisis follows the dismissal of more than 800 Nigerian workers by the Dangote Refinery, which PENGASSAN says violated labour laws and ILO conventions. The union alleged that the sacked workers were replaced with foreign staff, describing the action as “an affront to Nigerian workers.”
“All crude oil and gas supply to Dangote Refinery must stop immediately,” PENGASSAN declared in a resolution signed by its General Secretary, Lumumba Okugbawa. The union also accused military personnel of blocking members from cutting gas supply lines.
PENGASSAN President, Festus Osifo, confirmed on Sunday that the refinery and fertiliser plant had already been shut down, warning that there would be “no retreat” unless the workers were reinstated.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned the action would destabilise fuel prices and possibly force marketers to resume imports. “Disruption of crude and gas supply will trigger fuel price hikes and worsen power shortages,” IPMAN’s Chinedu Ukadike said, urging the Petroleum Minister to cut short his trip abroad and intervene.
Power operators are also sounding the alarm. The Association of Power Generation Companies (APGC) disclosed that gas suppliers had instructed thermal plants to halt operations, leaving hydro stations to shoulder demand. “Please be notified of imminent darkness, as hydros alone cannot sustain the system,” APGC’s Joy Ogaji warned.
The Nigerian Independent System Operator also cautioned that sustained disruption could cause nationwide grid instability and possible collapse.
The Trade Union Congress (TUC) declared its support for PENGASSAN, demanding reinstatement of the sacked workers, a public apology, and an independent probe into the refinery’s actions. It also placed its affiliates on standby for solidarity action.
On the other hand, the Forum of Concerned Nigerian Consumers accused the oil workers’ union of politicising the dispute, warning that its strike could push the country back into scarcity and economic instability.
Labour Minister Muhammad Dingyadi has appealed to PENGASSAN to suspend the strike and attend an emergency conciliation meeting today, warning that prolonged disruption would “lead to revenue losses and hardship for Nigerians.”
Dangote Refinery dismissed PENGASSAN’s claims, describing the strike as “reckless and dangerous.” It insisted the dismissals were necessary to curb sabotage and improve efficiency, not to punish union members. The company stressed that it employs more than 3,000 Nigerians and contributes significantly to tax revenues.
With the refinery shut down and power plants grinding to a halt, analysts warn the standoff could destabilise Nigeria’s already fragile economy. The outcome of today’s government-led talks may determine whether calm is restored or whether the country descends into a deeper energy crisis.
