A full-blown meltdown appears imminent in the oil downstream after Dangote Petroleum Refinery launched its fiercest attack yet on the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), accusing the union of decades of economic sabotage and a fresh plot to “weaponise hardship” against 230 million Nigerians.
In a scathing weekend statement, the refinery condemned PENGASSAN’s directive to cut crude oil and gas supplies to its facility, calling it “reckless, lawless and dangerous,” and warning that it could shut down production of petrol, diesel, kerosene, cooking gas, and aviation fuel.
“This is not about protecting Nigerian workers,” Dangote said. “It is about a cabal of oligarchs using fuel scarcity as a weapon to terrorise Nigerians.”
Dangote Group accused the union of having a long history of undermining the country’s energy security. The statement recalled how in 2007, when the federal government sold the moribund Port Harcourt and Kaduna refineries to Blue Star Consortium (led by Dangote Group) for $750 million, it was PENGASSAN and NUPENG that led the campaign to reverse the sale.
“It is now obvious to everyone that the FGN’s decision at the time was the right one and that PENGASSAN and NUPENG ignominiously wrote their names on the wrong pages of history,” Dangote declared.
The refinery also dismissed the much-publicised “rehabilitation” of the Port Harcourt Refinery as a scam that PENGASSAN “knowingly celebrated while Nigerians were deceived.”
Industry experts warn that the standoff could cost Africa’s largest economy trillions in lost output if fuel supplies grind to a halt.
“If PENGASSAN follows through, we are looking at a catastrophic fuel shortage that could shave off as much as ₦5 trillion from GDP in Q4 alone,” said Dr. Chijioke Okonkwo, an energy economist at Lagos Business School. who also noted that “transport, manufacturing, aviation – everything would seize up.”
Funmi Ayinde, lead analyst at Afrinvest Consulting, added: “This is not just a labour dispute; this is a national security risk. No country hands over its energy lifeline to a single union without consequences.”
Beyond policy obstruction, Dangote accused the union of mismanaging billions of naira in annual check-off dues to bankroll the “lavish lifestyles” of its leaders with no public accountability.
“The Dangote Group is the highest employer of labour in Nigeria and the highest contributor to the tax revenues of Nigeria and its sub-nationals. What comparable social responsibility has PENGASSAN, with its billions of Naira in annual check-off dues, lived up to?” the statement queried.
Dangote challenged the union to publish its audited accounts for the last ten years and disclose what it has done for its members or the Nigerian public.
The Presidency, alarmed by the implications, has summoned both PENGASSAN and Dangote management to an emergency meeting on Monday. Sources inside the Ministry of Labour confirmed that security agencies have been placed on alert to protect strategic fuel infrastructure.
A senior government official who spoke on condition of anonymity said:
“Nigeria cannot afford a total fuel shutdown. We will not allow any group – corporate or union – to hold the country hostage.”
Analysts warn pump prices could skyrocket past ₦1,500/litre if supply is cut.
