In a significant escalation of industrial unrest, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) initiated a nationwide strike on Monday, September 29, 2025, bringing operations at key oil and gas regulatory institutions to a standstill. The strike, which followed a directive issued by the union’s National Executive Council over the weekend, has severely disrupted activities at the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The industrial action has not only halted operations at these critical agencies but also raised concerns about potential fuel shortages, skyrocketing prices, and widespread economic impacts across Nigeria, a country heavily reliant on its oil and gas industry.
Strike Action and Immediate Impact
The strike, which commenced at 12:01 am on Monday for office-based workers and 6:00 am on Sunday for those in field locations, saw PENGASSAN members across the country withdrawing their services in a highly coordinated manner. The action effectively paralyzed the operations of key institutions that form the backbone of Nigeria’s oil and gas sector, which accounts for over 80% of the nation’s export earnings and a significant portion of government revenue.
At the NUPRC headquarters in Abuja, the main gate was locked, leaving employees stranded outside. Security operatives, acting on the union’s directive, barred staff and visitors from entering the premises. A similar scene unfolded at the NMDPRA headquarters in Abuja’s Central Business District, where all activities were completely halted as workers adhered strictly to the strike order. Tony Iziogba, the PENGASSAN Chairman at NMDPRA, confirmed the union’s success in enforcing the strike, stating, “We have achieved 100 per cent compliance. No staff or visitors are allowed access, and this directive has been fully implemented at NNPCL and other relevant agencies as well.”
The strike’s impact was not limited to administrative offices. Field operations, including crude oil production and gas supply chains, were also disrupted, as PENGASSAN members stationed at various oil fields, refineries, and gas facilities downed tools in compliance with the union’s orders. The shutdown of these critical operations has sent shockwaves through Nigeria’s energy sector, with fears of immediate and far-reaching consequences for fuel availability, electricity supply, and the broader economy.
Root Cause of the Strike
The catalyst for the nationwide strike was the alleged wrongful dismissal of approximately 800 workers at the Dangote Petroleum Refinery, a mega-refinery project owned by Africa’s richest man, Aliko Dangote. According to PENGASSAN, the refinery’s management violated Nigerian labor laws and International Labour Organisation (ILO) conventions by terminating the employment of workers who were members of the union and replacing them with foreign workers. The union’s General Secretary, Lumumba Okugbawa, outlined these grievances in a resolution issued on Sunday, accusing the refinery of engaging in anti-labor practices.
“The management of Dangote Petroleum Refinery has shown blatant disregard for the rights of workers by sacking nearly 800 employees for their legitimate union activities,” Okugbawa stated in the resolution. “Furthermore, the replacement of these workers with foreign labor is a direct violation of Nigerian labor laws and international conventions that protect the rights of workers to organize and join unions.”
In response to these alleged violations, PENGASSAN directed its members to halt all crude oil and gas supplies to the Dangote Refinery, a move that has significant implications for the facility’s operations and the broader fuel supply chain. The union’s resolution explicitly called for “all processes involving gas and crude supply to Dangote Refinery to be halted immediately” and urged International Oil Companies (IOCs) to “ramp down gas production and supply to Dangote Refinery and petrochemicals.” This directive has heightened concerns about disruptions to fuel distribution, as the refinery is a key player in Nigeria’s efforts to achieve self-sufficiency in petroleum refining.
Broader Implications for Nigeria’s Energy Sector
The strike’s impact extends far beyond the immediate shutdown of regulatory agencies and the suspension of supplies to the Dangote Refinery. The NNPCL, as the sole importer of petrol in Nigeria, plays a critical role in ensuring the availability of fuel across the country. The disruption of its operations could lead to fuel scarcity, long queues at filling stations, and a surge in pump prices, which would exacerbate the economic challenges faced by millions of Nigerians already grappling with inflation and rising living costs.
Additionally, the NUPRC is responsible for monitoring crude oil production and enforcing gas supply obligations to power plants, which are vital for electricity generation in Nigeria. The strike’s impact on the commission’s operations could disrupt gas supplies to power plants, potentially leading to blackouts and further straining the country’s fragile electricity grid. Oil marketers have warned that the halt in crude and gas supplies to the Dangote Refinery could have a ripple effect on the availability of petrol, diesel, and other petroleum products, driving up prices and exacerbating economic hardship.
The timing of the strike is particularly concerning, as Nigeria’s economy is already facing significant challenges, including a depreciating naira, high inflation, and dwindling foreign exchange reserves. The oil and gas sector, which accounts for a substantial portion of government revenue, is a critical lifeline for the economy, and any disruption to its operations could have severe fiscal and economic consequences.
PENGASSAN’s Demands and Actions
PENGASSAN’s demands are centered on addressing the alleged unfair labor practices at the Dangote Refinery and securing justice for the sacked workers. The union has called for the immediate reinstatement of the dismissed employees and an end to the use of foreign workers in roles that could be filled by qualified Nigerians. In addition to halting crude and gas supplies to the refinery, PENGASSAN has instructed its members to maintain a round-the-clock prayer vigil, signaling the union’s determination to sustain the strike until its demands are met.
The union’s actions have been marked by a high level of organization and discipline, with members across various agencies and field locations adhering strictly to the strike directive. The complete lockdown of NUPRC and NMDPRA headquarters, as well as the suspension of operations at NNPCL, underscores the union’s ability to mobilize its members effectively and exert significant pressure on both the government and the Dangote Refinery.
Government Response and Efforts to Resolve the Crisis
In response to the strike, the Minister of Labour has scheduled an emergency meeting with PENGASSAN leaders and other stakeholders on Monday, September 29, 2025, to address the crisis and seek a resolution. The meeting is expected to focus on mediating between the union and the management of the Dangote Refinery to address the allegations of wrongful dismissals and labor law violations. The government is also likely to explore measures to mitigate the impact of the strike on fuel and gas supplies, given the potential for widespread economic disruption.
The Minister of Labour’s intervention reflects the government’s recognition of the strike’s potential to destabilize the energy sector and the broader economy. However, resolving the conflict will require delicate negotiations, as PENGASSAN has shown no signs of backing down from its demands. The union’s insistence on halting crude and gas supplies to the Dangote Refinery adds a layer of complexity to the situation, as the refinery is a flagship project in Nigeria’s quest for energy self-sufficiency.
Economic and Social Implications
The PENGASSAN strike comes at a time when Nigeria is grappling with multiple economic challenges, including high inflation, unemployment, and a volatile exchange rate. The disruption of oil and gas operations threatens to exacerbate these issues, as fuel scarcity and price hikes could drive up the cost of transportation, goods, and services, further straining household budgets.
The potential for blackouts due to disrupted gas supplies to power plants is another major concern. Nigeria’s electricity sector is already plagued by frequent outages and an unreliable grid, and any reduction in gas supply could lead to prolonged power cuts, affecting businesses, households, and critical infrastructure such as hospitals and schools.
The strike also highlights deeper issues within Nigeria’s labor market, including tensions between employers and workers over fair treatment, job security, and the use of foreign labor. The allegations against the Dangote Refinery raise questions about compliance with labor laws and the extent to which large corporations prioritize profit over workers’ rights. PENGASSAN’s decision to target the refinery specifically reflects the union’s broader concerns about the erosion of workers’ rights in Nigeria’s oil and gas industry.
The Role of the Dangote Refinery
The Dangote Petroleum Refinery, located in Lekki, Lagos, is one of the largest single-train refineries in the world, with a capacity to process 650,000 barrels of crude oil per day. The refinery was designed to reduce Nigeria’s dependence on imported petroleum products and position the country as a net exporter of refined fuels. However, since its commissioning, the refinery has faced challenges, including delays in reaching full operational capacity and disputes with regulatory authorities and stakeholders.
The current dispute with PENGASSAN adds to the refinery’s challenges, as the halt in crude and gas supplies could delay production and undermine its ability to meet domestic fuel demand. The union’s allegations of labor law violations also risk damaging the refinery’s reputation and could lead to further scrutiny of its employment practices.
Potential Outcomes and Future Scenarios
The outcome of the emergency meeting convened by the Minister of Labour will be critical in determining the trajectory of the strike and its impact on Nigeria’s energy sector. If the government and PENGASSAN can reach an agreement that addresses the union’s demands, the strike could be called off, allowing operations at NNPCL, NUPRC, and NMDPRA to resume. However, if negotiations stall, the strike could escalate, leading to prolonged disruptions and severe economic consequences.
One possible scenario is that the Dangote Refinery agrees to reinstate the sacked workers and comply with labor laws, potentially under pressure from the government and the union. This would likely satisfy PENGASSAN’s primary demands and pave the way for a resolution. Alternatively, if the refinery resists these demands, the strike could continue, further disrupting fuel and gas supplies and intensifying the economic fallout.
Another factor to consider is the response of International Oil Companies, which have been directed by PENGASSAN to reduce gas production and supply to the Dangote Refinery. The compliance of IOCs with this directive could amplify the strike’s impact, as it would further constrain the refinery’s operations and limit the availability of petroleum products.
Broader Context: Labor Relations in Nigeria’s Oil and Gas Sector
The PENGASSAN strike is not an isolated event but part of a broader history of labor disputes in Nigeria’s oil and gas industry. The sector has long been a flashpoint for tensions between workers, employers, and the government, with frequent strikes and protests over issues such as unpaid wages, poor working conditions, and job insecurity. The current strike underscores the need for stronger labor protections and better dialogue between stakeholders to prevent such disruptions in the future.
The involvement of foreign workers in the dispute also highlights the sensitive issue of local content in Nigeria’s oil and gas industry. The Nigerian government has implemented policies to promote local participation in the sector, but the replacement of Nigerian workers with foreign labor, as alleged by PENGASSAN, undermines these efforts and fuels resentment among local workers.
Conclusion
The nationwide strike by PENGASSAN has brought Nigeria’s oil and gas sector to a critical juncture, with far-reaching implications for the economy, energy supply, and labor relations. The shutdown of key regulatory agencies, the halt in crude and gas supplies to the Dangote Refinery, and the looming threat of fuel scarcity and blackouts underscore the urgency of resolving the crisis. The emergency meeting convened by the Minister of Labour represents a critical opportunity to address the union’s grievances and restore normalcy to the sector.
As Nigeria navigates this challenging period, the strike serves as a reminder of the importance of fair labor practices, effective dialogue, and robust regulatory frameworks in sustaining the oil and gas industry. The resolution of this conflict will not only determine the immediate future of fuel and gas supplies but also set a precedent for how labor disputes are managed in one of Nigeria’s most critical industries. For now, the nation watches anxiously as stakeholders work to find a path forward amidst the paralysis of its energy sector.
