Oil and gas experts have urged the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to rescind its order directing members across key oil and gas companies to halt the supply of crude oil and gas to the Dangote Petroleum Refinery.
In a memo issued yesterday to branch chairmen in TotalEnergies, Renaissances, Chevron, Shell Nigeria Gas, Oando, and Seplat Producing Nigeria Unlimited, the union directed the immediate shutdown of valves and suspension of all crude loading operations to the facility.
The union alleged that the Dangote Refinery sacked 800 workers who had joined the association on Thursday. However, the refinery said only a few workers were dismissed over repeated cases of sabotage.
Responding to the said directive by the union, the management of Dangote Refinery in a press statement yesterday strongly condemned the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over its directive issued on 26 September 2025 instructing members in key oil and gas companies to halt crude oil and gas supply to the Dangote Refinery.
The refinery described the union directive as a brazen act of lawlessness, criminality and economic sabotage.
According to the statement PENGASSAN has no legal authority to interfere with contractual agreements between the Dangote Refinery and its suppliers. Such interference it argued amounts to criminal disruption of lawful contracts and represents an unlawful attempt to undermine a strategic national asset. The statement noted the inconsistency in PENGASSAN actions pointing out that while the association claimed in its press release of the same date that it would pursue legal action it quickly abandoned lawful channels and resorted to unlawful directives.
The management warned that halting supplies to the refinery would inflict untold hardship on Nigerians by disrupting the production of essential petroleum products such as petrol, diesel, kerosene, aviation fuel and cooking gas all of which are critical to everyday life and the economy. It questioned whose interest PENGASSAN was serving by imposing such severe hardship on citizens.
The statement further stressed that Dangote Refinery is not only Africas largest refinery but also a strategic national asset, a key revenue contributor to federal and state governments and a major attraction for foreign investment. Any disruption it warned risks discouraging investors and embarrassing the nation globally.
The management called on the Federal Government, security and law enforcement agencies to act swiftly to stop PENGASSAN reckless directive and urged Nigerians to resist any attempt by the union to impose chaos on the nation.
Speaking with LEADERSHIP yesterday, the Centre for the Promotion of Private Enterprise (CPPE) chief executive, Dr Muda Yusuf, said there are processes of resolving labour disputes like this. “I don’t think this extreme position will augur well for the economy. Oil and gas are a very critical sector. Unless PENGASSAN has other motives, this is a disproportionate response to whatever may have happened. They have the industrial court; they have other processes. If they go to the point of cutting off the supply, I think that is disproportionate; it should not be encouraged. They don’t own the pipelines. Many of these people have their grouse against Dangote because he has disrupted the sector, and so many of them have benefited from the status quo. I think there is more to the sack,” he said.
On his part, the chief economist at SPM Professionals, Dr Paul Alaje, told LEADERSHIP Sunday that withdrawal will lead to some level of scarcity. “I understand that Dangote is trying to cover up in the supply chain to ensure that, with or without the influence of PENGASSAN, there will be sufficient fuel supply. However, this may not apply in the short and medium term. While it is good that we encourage Dangote to ensure adequate fuel supply, we might have a subtle market capture. But what we know is that this matter needs to be resolved. It is normal for unions to protect their members.
On the other hand, as a businessperson, Dangote may not want his employees to be unionised. I think where we need to come from is the position of the labour laws in Nigeria. But I also think what is important here is the implication for the ordinary person. If there is any scarcity, many Nigerians may not understand. They may see it as, Why are we still having fuel scarcity when the subsidy is gone and the naira has been devalued? So, I think President Tinubu and other well-meaning Nigerians may need to intervene, and on time,” he stated.
Also speaking with LEADERSHIP in a telephone interview on Saturday, oil and gas expert Henry Adigun warned that such a decision could cause distortions in the nation’s energy sector.
A group known as Stand-Up South South Security Group warned those plotting to sabotage the Dangote Refinery. The group stated that an attack on the refinery is an attack on the country, adding that Nigerians must reject the temptation to be used as tools to undermine the facility. In a statement signed by its National Secretary, Comrade Endurance Ukutegbere, the group said every patriotic citizen must resist any sinister plot to frustrate Dangote Refinery’s operations.
According to Dr Joe Abah, OON, the army would immediately be mobilised in other countries to keep the services going.
Meanwhile, petroleum product marketers have called for calm following an announcement by Dangote Refinery management that the facility has stopped selling Premium Motor Spirit (PMS), also known as petrol, in naira.
Petroleum marketers assured that amicable negotiations would help resolve the situation.
When contacted, the Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMA), Clement Isong, said there was no need for panic, noting that the matter would be resolved quickly. He stressed that it was unthinkable for Nigerians to buy petrol in dollars, as the economy could not absorb such a shock.
Another operator, who preferred anonymity, said it was too early to conclude the situation. He noted that clarity would emerge when new orders were placed with the refinery.
Adigun suggested a return to the Direct Sale, Direct Purchase (DSDP) system introduced by the Nigerian National Petroleum Company Limited (NNPCL) to avoid market disruptions. Under the arrangement, crude oil would be exchanged for refined petroleum products to ensure domestic supply while avoiding cash shortages.
Adigun added that the DSDP should apply to existing refineries in the country to ensure fair market access. He argued that the Dangote Refinery was initially designed for export purposes and should buy crude at the appropriate market value. He, however, warned that the unfolding drama could lead to an upward adjustment in petrol pump prices.
The refinery informed marketers on Friday that the decision would take effect from Sunday, September 28, 2025, citing the exhaustion of its crude-for-naira allocation.
A notice, reportedly signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals and titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025”, explained that the refinery had exceeded its naira-crude allocations.
“All customers with PMS transactions in naira who would like a refund of their current payments should formally request the processing of their refund,” the statement read in part.
