Dangote Refinery Blames PENGASSAN for Economic Sabotage Amid Fuel Supply Disruptions

The Dangote Petroleum Refinery has accused the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) of engaging in actions it described as deliberate economic sabotage, following disruptions to crude oil and gas supplies to its multi-billion-dollar facility in Lagos. The accusation comes against the backdrop of escalating tensions between the management of the refinery and the union, whose industrial actions have sparked concerns over fuel availability and broader economic stability.

According to the refinery’s management, PENGASSAN’s directives to halt supply have significantly affected production schedules and the distribution of refined petroleum products. Dangote officials argue that these actions are not only harming the refinery’s operations but also directly impacting the Nigerian economy at a time when the nation is banking on the refinery to stabilize fuel supply, reduce reliance on imports, and ease foreign exchange pressures.

The refinery, which commenced operations with the promise of transforming Nigeria into a net exporter of refined petroleum products, has been at the center of recent fuel market developments. Industry observers note that its output is already beginning to reduce Nigeria’s costly dependence on imported petrol and diesel, while offering the potential for lower pump prices and improved foreign reserves. However, disruptions linked to labor disputes are seen as a threat to realizing these objectives.

Management of the refinery insisted that while workers’ rights and union representation are respected, the use of strikes and blockades as tools of negotiation amounts to holding the entire economy hostage. “These actions do not just affect our company; they affect every Nigerian who relies on stable fuel supplies, businesses that depend on affordable energy, and the government’s revenue expectations from the downstream sector,” a senior Dangote executive was quoted as saying.

The confrontation between the refinery and PENGASSAN is unfolding against a backdrop of economic challenges, including inflationary pressures, a volatile naira, and rising energy costs. Economists warn that any prolonged disruption at the Dangote Refinery could have ripple effects across industries, driving up fuel prices, transportation costs, and inflation levels. Given that the refinery was expected to ease the financial burden of fuel imports — which currently consume billions of dollars in scarce foreign exchange — disruptions risk undermining one of Nigeria’s most promising economic reforms.

On its part, PENGASSAN has defended its actions, insisting that they are driven by legitimate concerns over labor rights, working conditions, and management practices. The union argues that the refinery’s attempt to frame its industrial action as sabotage ignores the underlying grievances of the workforce. According to union representatives, workers deserve fair treatment, safety assurances, and adequate dialogue channels, and any failure by management to address these demands leaves industrial action as a last resort.

Industry stakeholders are now calling for urgent intervention by the federal government to prevent the dispute from escalating further. Given the refinery’s strategic role in Nigeria’s economic recovery plans, many believe the government cannot afford to remain passive. The Ministry of Labour and Employment has been urged to mediate between the parties, while the Nigerian National Petroleum Company Limited (NNPCL) is expected to play a role given its central position in crude supply arrangements.

The timing of the dispute has also raised concerns within Nigeria’s oil and gas sector. Just as the country seeks to maximize its OPEC production quota and boost revenues, internal conflicts risk derailing progress. Some analysts argue that prolonged hostilities could also discourage further private investments in the energy sector, particularly if investors perceive unresolved labor conflicts as a persistent risk.

Despite the refinery’s strong criticism of PENGASSAN, observers note that dialogue remains the only viable path forward. The union’s grievances, if unresolved, could lead to more disruptions, while the refinery’s insistence on labeling the industrial action as sabotage may harden positions. Experts suggest that a balanced resolution is needed — one that acknowledges workers’ rights but also ensures the uninterrupted operations of a facility so critical to national interest.

The Dangote Refinery, hailed globally as one of the largest single-train refineries, was built with the aim of processing 650,000 barrels of crude oil daily. Its operational success is considered vital to Nigeria’s energy independence. Any disruption, therefore, carries symbolic and practical weight, not just for local energy markets but also for Nigeria’s credibility in managing strategic infrastructure projects.

As negotiations continue, citizens are closely watching developments, worried about the implications for fuel supply and prices. For commuters, small businesses, and manufacturers, steady access to affordable fuel is non-negotiable. Already, speculation about possible scarcity and price hikes has triggered anxiety in major cities, with some fuel stations reporting longer queues.

In the broader economic context, the Dangote-PENGASSAN standoff highlights the delicate balance between labor rights and national interest in strategic industries. While unions play an essential role in safeguarding workers’ welfare, the government and private sector stakeholders are reminded of the need for proactive engagement to avoid industrial crises in sensitive sectors like energy.

With mounting pressure from business groups, civil society, and international observers, the expectation is that both sides will return to the negotiating table. For Nigeria, the stakes are high: restoring stability at the Dangote Refinery is not just about one company’s operations but about securing a cornerstone of its economic transformation agenda.