The Nigerian Independent System Operator (NISO) has expressed serious concerns over the ongoing industrial dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Refinery, which has led to an official directive suspending the supply of crude oil and natural gas to the refinery.
This development threatens to impact the stability of Nigeria’s national power grid, NISO warned in a statement on Sunday.
“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.”
The executive secretary of the Association of Power Generating Companies, Dr. Joy Ogaji, had earlier confirmed that gas suppliers had already issued notices to halt supply to thermal power stations in compliance with the union’s directive.
“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,” Ogaji stated in a message to stakeholders earlier on Sunday.
She cautioned that hydroelectric dams alone cannot sustain the national grid, warning of “imminent darkness” if the strike proceeds.
The warning comes ollowing PENGASSAN’s plans to begin an indefinite nationwide strike on Monday over the dismissal of more than 800 workers at the Dangote Petroleum Refinery.
The union, after an emergency NEC meeting on Saturday, directed its members across the oil and gas sector to down tools until the dismissals are reversed.
Industry experts said the strike could paralyse crude production, fuel supply, gas distribution, and electricity generation. With thermal plants responsible for over 70 per cent of Nigeria’s power supply, analysts fear the shutdown may overwhelm hydro stations and trigger a total grid collapse.
NISO highlighted that Nigeria’s electricity generation system is heavily dependent on gas-fired power plants, which rely on steady and uninterrupted natural gas supplies.
The suspension of gas deliveries to the refinery and associated power infrastructure could severely limit generation capacity, disrupt system operations, and ultimately destabilise the national grid.
Such disruptions risk causing widespread power outages, which could affect businesses, households, and critical public services nationwide.
The system operator stressed that the potential consequences extend beyond power supply interruptions, warning that prolonged instability may erode investor confidence and have ripple effects on Nigeria’s broader economy.
NISO confirmed it is actively considering emergency measures designed to prevent a total collapse of the grid, but emphasized that these are stopgap solutions that cannot replace the need for a swift resolution to the dispute.
Calling on both PENGASSAN and Dangote Refinery management, NISO urged all stakeholders to prioritize dialogue and pursue lawful avenues of resolving their disagreements.
Such engagement is crucial not only to protect the functioning of the energy sector but also to safeguard the wellbeing of millions of Nigerians who depend on consistent electricity for daily living and economic activities.
NISO reaffirmed its commitment to maintaining the security and reliability of the national grid while supporting collaborative efforts among industry players and regulators to uphold energy security in Nigeria.
The operator called on the federal government and relevant authorities to facilitate productive negotiations that can restore gas supply and ensure uninterrupted power generation.
As Nigeria continues to grapple with ongoing power sector challenges, the dispute underscores the fragile interdependencies between the oil and gas industry and the country’s electricity infrastructure, and the critical importance of resolving labor conflicts swiftly to prevent systemic risks. This situation remains closely monitored by industry stakeholders and consumers alike, with hopes that all parties involved will act responsibly to preserve national energy stability for the collective good.
