Nationwide Strike Triggers Dual Energy Crisis
Nigerians face difficult times ahead as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) begins a nationwide strike on Monday, September 29, 2025. The strike threatens to create a dual crisis involving rising petrol prices and widespread power outages, both of which could severely disrupt daily life and the economy across the nation.
The strike was called following the dismissal of over 800 Nigerian workers at the Dangote Petroleum Refinery, one of the country’s most critical energy facilities. The union accused refinery management of violating labor laws and international standards by terminating workers due to their union membership. PENGASSAN also claimed that many of the dismissed employees were replaced by foreign workers, a move that was strongly opposed by the union. In response, the union ordered an immediate halt to all crude oil and gas supplies to the refinery, a decision that has deeply impacted the energy sector.
Impact on Fuel Supply and Prices
The Dangote refinery processes a significant portion of Nigeria’s domestic fuel requirements. The stoppage of crude and gas supplies caused a shockwave in the fuel market. Oil marketers quickly warned that fuel distribution would face severe disruptions, leading to shortages that would push petrol prices higher. As fuel demand continues to rise while supplies dwindle, serious shortages are expected to develop. These shortages will inevitably drive fuel prices up, affecting millions of Nigerians who rely on affordable petrol for transportation, business, and everyday life.
Fuel marketers have also indicated that, if the strike continues, they may be forced to import petroleum products to fill the supply gap. Import licenses would need to be granted by the government, but the additional costs associated with imports would likely translate into even higher prices for consumers. The potential for a fuel crisis has raised alarm among industry stakeholders, many of whom fear a repeat of the fuel scarcity that Nigeria has experienced in past years.
Power Generation Threatened by Gas Supply Halt
Simultaneously, power generation companies have announced plans to shut down all thermal power plants that rely on gas supplies for operation. Thermal plants account for over 70% of Nigeria’s electricity generation, meaning their shutdown would threaten to plunge millions of homes and businesses into darkness.
The Nigerian Gas Infrastructure Company reportedly instructed gas suppliers to halt deliveries to thermal power plants. This directive has caused widespread concern that extensive blackouts are imminent, and if the thermal plants remain offline for long, the hydroelectric plants will be pushed beyond their limits. This situation increases the risk of a complete collapse of the national power grid, which would exacerbate the already fragile power supply situation in Nigeria.
Without reliable electricity, many industries could be forced to suspend operations, small businesses may struggle to survive, and households will face significant difficulties in meeting basic needs. The economic consequences of such disruptions could be severe, especially in a country where many sectors rely heavily on stable electricity to function efficiently.
Union Actions and Government Response
PENGASSAN instructed all members across various workplaces to cease work at 12:01 am on Monday, while field workers were ordered to stop at 6:00 am on Sunday. Members were also asked to participate in a continuous prayer vigil, symbolizing their determination and the seriousness of the crisis. The timing of these actions was directly linked to the mass sackings at the Dangote refinery, which the union has consistently described as illegal and unjust.
An official resolution signed by PENGASSAN’s General Secretary, Lumumba Okugbawa, mandated the immediate halt of all crude oil and gas supplies to the Dangote refinery. The resolution further instructed International Oil Companies (IOCs) operating in Nigeria to reduce gas production and cease supplying the refinery and related petrochemical plants. The union argued that this coordinated action was necessary to pressure refinery management into reversing the dismissals and complying with labor laws.
The situation escalated further when reports emerged that military personnel attempted to block union members from cutting off gas supplies to the refinery. This highlighted the tense and volatile atmosphere surrounding the strike, with government forces apparently involved in protecting refinery operations.
On Sunday, PENGASSAN’s President, Festus Osifo, confirmed that the Minister of Labour and Employment, Muhammadu Dingyadi, had called for an emergency meeting to be held on Monday. The meeting aimed to bring together the union and refinery management to find a resolution to the conflict.
Complete Shutdown and Industry Concerns
By Sunday evening, the strike had forced a complete shutdown of the Dangote refinery and its fertilizer plant, though the diesel plant remained operational for the time being. The union made it clear that it would not back down unless the dismissed workers were reinstated. Osifo issued a firm warning: “We will not surrender unless the affected workers are re-employed by Dangote.”
The wider industry responded with concern and apprehension. The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that the disruption could destabilize the fuel market, erode investor confidence, and worsen Nigeria’s already fragile electricity supply. Chinedu Ukadike, IPMAN’s National Publicity Officer, noted that the halt in crude and gas supply would almost certainly cause fuel price hikes and increase power shortages.
Ukadike explained that fuel marketers might be forced to import petroleum products to bridge the supply gap if the strike continued. He urged the government to act swiftly, warning that any delay could cause unnecessary inflation, further squeezing the Nigerian people. He also called on the Minister of Petroleum to cut short his foreign trip and return home to broker peace, citing a past instance when the minister returned early to resolve a similar crisis involving the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
Growing Electricity Crisis
On the power side, Joy Ogaji, Executive Secretary of the Association of Power Generation Companies, sounded the alarm over the gas supply halt. The Nigerian Gas Infrastructure Company had specifically requested that generation companies comply with the shutdown of gas deliveries. This development suggests that widespread blackouts are imminent.
Since thermal plants generate the majority of Nigeria’s electricity, the shutdown would drastically reduce power availability. Hydroelectric plants, which supply a smaller share of electricity, would be pushed beyond their limits, increasing the risk of a complete national power collapse. This potential failure would have devastating effects on the country’s power grid and on millions of Nigerians who depend on electricity for their daily activities.
Compounding the crisis was the shutdown of the Escravos-Lagos Pipeline System II (ELPS II), a key gas pipeline that supplies the Dangote petrochemical plant. The pipeline reportedly stopped receiving gas and is now relying only on residual gas within the system. This shutdown further restricts gas availability, negatively impacting both power generation and industrial operations dependent on natural gas.
Calls for Government Intervention and Peace
Concerned stakeholders and consumer groups have called for immediate peace and government intervention to prevent the crisis from escalating further. The Forum of Concerned Nigerian Consumers urged the Federal Government and security agencies to intervene and prevent the strike from undermining the multi-billion-dollar Dangote refinery.
The forum accused the oil workers’ union of politicizing the energy sector and warned that the strike could bring back fuel scarcity and economic instability, hurting millions of Nigerians. The Nigerian Independent System Operator also expressed concerns that ongoing gas supply disruptions threaten the stability of the national electricity grid. Since the grid relies heavily on gas-fired power generation, any sustained interruption would reduce generation capacity, disrupt system operations, and reduce electricity reliability across the country.
Trade Union Congress Supports the Strike
The Trade Union Congress (TUC) expressed strong support for PENGASSAN’s actions, condemning the refinery management for violating workers’ rights. The TUC Secretary-General, Nuhu Toro, demanded the immediate reinstatement of all dismissed workers, a public apology, and an independent investigation into the matter. He placed all affiliated unions on alert for possible solidarity actions should the strike persist.
At the same time, the Minister of Labour and Employment appealed to the union to withdraw its strike declaration to allow for peaceful negotiation. The minister warned that the strike would cause revenue losses and increase hardship for ordinary Nigerians. The Nigerian Upstream Petroleum Regulatory Commission also called for dialogue and peaceful resolution.
Despite these calls, some consumer groups accused PENGASSAN of politicizing the energy sector and warned of potentially dire consequences if the strike continued without resolution.
Dangote Group’s Response
In response to the accusations, the Dangote Group rejected claims of union victimization, accusing PENGASSAN of sabotage and acting out of selfish interests. The company described the strike order as reckless and dangerous, aiming to weaponize hardship to pressure the government and refinery management.
Dangote defended the dismissals as necessary for safety and efficiency reasons, emphasizing that over 3,000 Nigerians remained employed at the facility. The group also highlighted its status as one of Nigeria’s largest employers and tax contributors. It challenged PENGASSAN to publish its audited accounts and demonstrate its contributions to national development.
Economic Consequences and Outlook
With the shutdown of the Dangote refinery and fertilizer plant alongside halted thermal power plant operations, Nigeria faces a significant challenge. Fuel shortages have emerged, pump prices continue to rise steadily, power outages are becoming widespread, and inflationary pressures are mounting. These developments threaten to worsen an already fragile economy.
Analysts have warned that if the strike continues unresolved, the energy sector could destabilize further, deepening economic difficulties and hardship for millions of Nigerians who depend on stable energy supplies for their daily activities and business operations.
The emergency meeting called by the Minister of Labour and Employment is viewed as a pivotal moment. The outcome could restore calm through dialogue or plunge Nigeria deeper into an energy crisis. Much depends on the willingness of both the union and refinery management to negotiate sincerely and seek compromise.
Meanwhile, millions of Nigerians are preparing for the potential hardships caused by ongoing disruptions. The interruptions in fuel supply and electricity generation are expected to affect transportation, industry, and household energy needs significantly.
If shortages persist, the cost of goods and services will likely increase, further straining the livelihoods of ordinary citizens. Economic stability, already under pressure, faces additional risks as inflationary trends intensify.
The energy sector plays a critical role in supporting many other parts of the economy. Sustained disruptions could cause ripple effects across manufacturing, agriculture, and service industries, all of which rely heavily on reliable energy to function efficiently.
Broader Challenges in Nigeria’s Energy Sector
The current crisis highlights the broader challenges faced by Nigeria’s energy sector, including infrastructure deficits and labor disputes. These challenges have long plagued the sector and contributed to inconsistent energy supply and ongoing operational difficulties.
Without swift and effective government intervention, the strike’s effects could compound existing problems and slow the country’s economic growth.
The energy supply chain’s vulnerability has been exposed, underlining the importance of maintaining good labor relations in critical industries to avoid such crises.
In summary, Nigeria stands at a critical crossroads. The coming days will determine whether dialogue between the striking union and refinery management will lead to a peaceful resolution or if the country will endure a deeper energy and economic crisis.