In a significant development that may impact Nigeria’s downstream oil sector, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has reportedly shut down operations at the Dangote Refinery, Africa’s largest single-train refinery. The industrial action, which took place in the early hours of Sunday, marks a new phase of tension between the union and the management of the multi-billion-dollar facility located in the Lekki Free Trade Zone, Lagos.
Though full details of the shutdown remain emerging as of press time, credible sources within the labour union confirmed that the action was prompted by unresolved labour-related issues bordering on worker welfare, employment terms, and alleged breaches of collective agreements by the refinery’s management. The move by PENGASSAN comes amid rising concerns over industrial relations in Nigeria’s energy sector, particularly as the country seeks to reposition itself as a refining hub in West Africa.
The Dangote Refinery, which commenced production earlier this year, was expected to process 650,000 barrels of crude oil per day when fully operational, significantly reducing Nigeria’s dependence on imported refined petroleum products. The facility is also a critical pillar in the government’s energy transition and domestic refining strategy, having attracted both national and international attention for its scale and economic potential.
However, the sudden disruption could delay key milestones in the refinery’s ramp-up plans and cast shadows over investor confidence, especially at a time when Nigeria is grappling with fuel scarcity and foreign exchange pressures.
PENGASSAN, known for its strong stance on the protection of oil and gas workers’ rights, has in recent months issued several warnings to industry stakeholders about deteriorating labour standards, particularly within privately owned energy enterprises. The union insists that no project, regardless of its scale, should undermine the rights and welfare of Nigerian workers.
Efforts to reach the management of Dangote Refinery for an official response were unsuccessful at the time of filing this report. Meanwhile, security has been beefed up around the facility, and talks are reportedly underway to de-escalate the situation and bring parties to the negotiation table.
As Nigerians continue to watch closely, the shutdown raises fresh concerns about the balance between industrial progress and labour justice—two crucial pillars for sustainable economic development in the country.
