In a dramatic turn of events, Nigeria—the continent’s largest oil producer—is facing a nationwide fuel crisis as a strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has brought the country’s oil sector to a grinding halt. The walkout, which began on Monday, September 29, 2025, follows the controversial dismissal of more than 800 unionized workers at the Dangote Oil Refinery, Africa’s largest and most technologically advanced facility of its kind.
The dispute erupted late last week when PENGASSAN accused the privately owned Dangote refinery of firing hundreds of local workers for unionizing and replacing them with 2,000 workers from India. The refinery, owned by Africa’s richest man Aliko Dangote, responded by categorically denying the allegations. In a statement quoted by AFP, Dangote’s management called the claims a “complete falsehood,” insisting that only a small number of employees were let go for “acts of sabotage.” The company did not disclose the exact figure.
The stakes, however, have only grown since the strike began. PENGASSAN quickly moved to halt crude oil and gas deliveries to the refinery, leading Dangote to contest the action in court. According to Reuters, the refinery secured a court injunction barring the union from obstructing crude and gas supply, but PENGASSAN maintains it has not been formally served. “Court orders are served via bailiffs, not through social media,” union executive Lumumba Okugbawa told Reuters.
The union’s actions have not been limited to the refinery itself. Striking workers have blocked the offices of key state oil institutions, including the Nigerian National Petroleum Corporation (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The result? As of Tuesday, September 30, these offices remain closed, and the nation’s oil and gas sector is at a virtual standstill.
The effects have rippled far beyond the oil fields. Nigeria’s electricity output has fallen by more than 1,000 megawatts, as the strike has disrupted fuel supplies to power plants. The country’s grid operator has been forced to implement selective power cuts to stave off a total blackout, according to statements made to Reuters. The broader economic impact could be dire: oil revenues account for a staggering 80% of Nigeria’s government income, making this strike a serious blow to the nation’s finances.
Government officials have scrambled to mediate the crisis, but talks on Monday ended in a stalemate. “You have to reinstate these people. If you reinstate them tonight, we will call off our action tonight. But unfortunately, that reinstatement did not happen and we were not able to reach conclusions on the subject,” PENGASSAN President Festus Osifo told Reuters. Negotiations were set to resume Tuesday, but as of the latest reports, no agreement had been reached.
For Dangote, the refinery represents a $20 billion bet on Nigeria’s future. Launched in 2023, the plant has a processing capacity of 650,000 barrels per day and was heralded as a game-changer for a country that, until recently, imported almost all its petrol despite being a major crude producer. The refinery has already started exporting fuel beyond West Africa, and its operations have driven down petrol prices for Nigerian consumers—a rare bright spot in a sector long plagued by corruption and mismanagement.
But with great power comes great scrutiny. Critics have accused Dangote of using anti-labour tactics, especially after a similar dispute earlier in September involving a fuel tanker drivers’ union. That union alleged that Dangote hired new drivers on the condition they would not join a union—a claim the refinery denied. These incidents have sparked fears that Nigeria’s oil sector could be swapping one monopoly for another, even as the new refinery shakes up entrenched interests.
The current crisis has also raised uncomfortable questions about labor rights in Nigeria’s private sector. PENGASSAN has called the mass layoff a clear violation of both Nigerian labor laws and international conventions. Laid-off workers have claimed they were denied basic safety gear, adding fuel to the fire. The Dangote Group, for its part, has dismissed the strike as "criminal conduct." The oil regulator has called for an amicable end to the dispute, while NNPC spokesperson Andy Odeh told Reuters that the company is “committed to maintaining a safe, stable and inclusive operating environment.”
The international ramifications are just as significant. Nigeria’s neighbors, many of whom import fuel from Dangote, are watching nervously as the dispute threatens to disrupt regional fuel supplies and trade across West Africa. Industry observers warn that if the strike spreads to other unions, oilfield operations could be disrupted, product flows halted, and fuel shortages at petrol stations could become the norm.
Investor confidence is also on the line. The standoff has cast a shadow over Nigeria’s ambitions to become self-sufficient in fuel supply and a major player in export markets. “The dispute threatens to undermine investor confidence and raises questions about labour protections in Nigeria’s private sector,” Reuters reported.
For now, both sides remain dug in. PENGASSAN is demanding the immediate reinstatement of all dismissed workers, while Dangote insists the firings were justified and part of a necessary staff reorganization. The union, meanwhile, is contesting the refinery’s legal maneuvers, insisting that due process has not been followed.
As government-mediated talks drag on, the clock is ticking. If a resolution isn’t found soon, the consequences could be severe—not just for Nigeria’s oil sector, but for the country’s economy and millions of ordinary Nigerians who rely on stable fuel and electricity supplies. The world is watching to see whether compromise or confrontation will prevail in Africa’s most populous nation.
