Petroleum Workers’ Union PENGASSAN Directs Members to Cut Off Gas Supply to Dangote Refinery

The Observer
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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has ordered its members to cut off gas supply to the Dangote Petroleum Refinery. This directive follows the refinery management’s decision to disengage union members amid their ongoing efforts to organize and unionize the workforce.

In a memo signed by Comrade Lumumba Ighotemu Okugbawa, General Secretary of PENGASSAN, union members were instructed to shut off crude oil supply valves to the refinery and halt loading operations for vessels destined for the facility. The directive includes an immediate cessation of gas supply.

Addressed to branch chairmen of several major operators including TotalEnergies E&P, Seplat Producing Nigeria Unlimited, Renaissance, Chevron, Oando, Shell Nigeria Gas, and NGIC, the memo expressed deep disappointment with Dangote Refinery management. The union described the management’s actions as “illegitimate” and accused them of spreading misinformation instead of engaging in meaningful dialogue to resolve the matter.

The memo reads in part:
“We bring you fraternal greetings from the National Secretariat. As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to their constitutional right to unionize. They have embarked on a campaign of misinformation and propaganda to justify this illegitimate action rather than engaging with us to right the wrong.

“Consequently, you are hereby directed to cut off gas supply to NGIC with immediate effect. All crude oil supply valves to the refinery should be shut and loading operations for vessels headed there halted immediately.

“NGIC Chairman, ensure gas supply to the refinery is cut off effective immediately. All chairmen on this summon are to report promptly on the progress of this directive.”

This development underscores the rising tensions between PENGASSAN and Dangote Refinery management over unionization efforts and labour relations.

In a related development, the Dangote Petroleum Refinery recently announced the suspension of petrol sales in naira currency due to the exhaustion of its crude-for-naira allocation. The suspension, effective Sunday, September 28, 2025, affects all naira-based transactions. Customers with pending payments in naira have been advised to request refunds, as detailed in a notice sent to clients on Friday evening.

The refinery cited inadequate crude allocation under the crude-for-naira programme as the reason for suspending local currency sales. “We are unable to sustain PMS sales in Naira going forward,” the company stated, in the notice signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals.

Titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025,” the notice read:
“We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward. Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.

“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 combined impact of union action and currency suspension has intensified concerns over fuel supply stability and pricing, amid ongoing foreign exchange pressures in Nigeria’s downstream oil sector.

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