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PENGASSAN strike triggers hike as marketers concerned over impacts
Tougher times are head for Nigerians as Petroleum and Gas Senior Association of Nigeria (PENGASSAN) begin its nationwide strike today (Monday, 29th September, 2025), and vowed to let loose a double blow of hike in petrol price and nationwide electricity blackouts.
The union’s move to stop crude oil and gas supply to Dangote Petroleum Refinery has come as a shock to the energy sector, with the oil marketers issuing a warning of serious halt to fuel distribution across the country.
This decision is expected to strangle the domestic market, pushing to demands and prices of the product. Worsening the situation, power generation companies have declared a complete halt of all thermal plants, an unopposed fallout of the strike.
PENGASSAN Strike Triggers Hike
With thermal stations producing more than 70 percent of Nigeria’s power supply, the development threatens to plunge the nation into darkness, crippling economic activities and plunging millions of households and businesses into deeper strain—unless the Federal Government intervenes.
Yesterday, PENGASSAN declared a nationwide strike, directing all its members in several offices, companies, institutions, and agencies to halt all services commencing at 12:01 am on Monday, September 29, 2025.
The body also directed members working in various field locations to lower their tools from 6:00am on Sunday, 28 September, and go on a round-the clock prayer vigil. The urgent decision came after the dismissal of more than 800 Nigerian workers at the Dangote Petroleum Refinery.
In a strong statement signed by PENGASSAN General Secretary, Lumumba Okugbawa, the union alleged that the refinery violated Nigerian Labour law and International Labour Organisation conventions by sacking workers for becoming a member of the union, and allegation is made that the sacked workers have been replaced with foreigners.
“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the resolution declared. “All IOC (International Oil Companies) branches must ramp down gas production and supply to Dangote Refinery and petrochemicals.”
PENGASSAN Strike Triggers Hike
The union also accused military personnel of blocking its members from cutting gas supplies to the facility. Speaking on Channels Television on Sunday, PENGASSAN President Festus Osifo confirmed that the Minister of Labour and Employment, Muhammadu Dingyadi, had summoned a meeting between both parties for Monday.
Mr. Osifo revealed that the strike directive had already had already resulted to a total shutdown of the refinery and fertilisers plants, though on Sunday evening, the diesel plants were still seen working.
He insisted that there be no no-going-back if the sacked workers were not restored to their positions.
“We will not surrender unless the affected workers are re-employed by Dangote,” Osifo declared.
Warning From Marketers And GenCos
Responding to the strike directive, the Independent Petroleum Marketers Association of Nigeria (PENGASSAN) has warned that the halt could shake fuel prices, weaken investment confidence and deteriorate Nigeria’s fragile power supply.
“There is no market stability and no return on investment,” IPMAN National Publicity Officer Chinedu Ukadike said.
“Disruption of crude and gas supply will trigger fuel price hikes and worsen power shortages.”
“The directive by PENGASSAN to stop the supply of crude and gas to the refinery would definitely affect the market, he added.
PENGASSAN Strike Triggers Hike
“Marketers may now be forced to consider importing products, which means the Nigerian Midstream and Downstream Petroleum Regulatory Authority will have to issue import licences to DAPPMAN members to augment the shortfall.”
He warned that if Federal Government does not move fast, the crisis would result to higher pump price and “unnecessary galloping inflation” that could further harden living standard of many Nigerians.
“I believe a proactive Federal Government, through the Minister of Petroleum, will quickly intervene to ensure these lapses do not destabilise the economy,” he added.
Mr. Ukadike further implored the Minister of Petroleum to swiftly lessen the period of his foreign trips and return home and strike a peace deal.
“The last time there was an issue with NUPENG, the minister was also out of the country, but he aborted the trip and came back to resolve it. I expect him to do the same with this issue,” he stressed.
On the same page, the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, alerted that gas suppliers had directed GenCos to disrupt production.
“Thermal GenCos have received notification from our gas suppliers to shut down our thermal power plants following directives from PENGASSAN. The Nigerian Gas Infrastructure Company has specifically requested GenCos to comply.
“Please all be notified of imminent darkness, as hydros alone cannot sustain the system,” according to her message.
PENGASSAN Strike Triggers Hike
With thermal stations responsible for over 70 percent of Nigeria’s electricity supply, it is of expectancy that the shutdown will result to widespread outage, stretch by hydro plants beyond capacity, and heightening the danger of a nationwide system collapse.
Additionally, she said that the Escravos-Lagos Pipeline System II, which supplies natural gas to Dangote Petrochemical Plant under the Willing Price Producers Path, has been shut down.
“We heard ELPS is already shut, only gas left in it is the Line Packed, no incoming since morning.”
At an event in Abuja, the forum alleged the oil workers’ union is playing politics with Nigeria’s flexible energy sector after its threat to picket the $20 billion refinery over alleged wanton illegal sackings.
According to the president of the forum, Olabisi Taiwo, Nigerians must see through the plot, warning that the strike decision could further dwindle the country and take it back into the period of fuel scarcity and economic instability.
The Nigerian Independence System Operator (NISO) also expressed concern and fear, issuing a warning that long disruption could cause harm to grid stability and cause damage.
“The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations, and undermine the stability and reliability of electricity supply across the country,” it stated.
PENGASSAN Strike Triggers Hike
TUC Supports PENGASSAN Decision
The Trade Union Congress has thrown its weight behind PENGASSAN decision to embark on strike, frowning at the refinery’s management over violating the rights of the dismissed workers.
TUC Secretary-General Nuhu Toro requested the restoration to office of all sacked workers, with a public apology and an independent probe. The TUC also notifies all affiliates bodies of potential nationwide strike.
Meanwhile, according to the Minister of Labour and Empowerment, Muhammad Dingvadi, who implored all the striking oil workers to return to work to let peace reign.
“A strike will not only lead to revenue losses but also hardship for Nigerians,” he warned.
The Nigerian Upstream Petroleum Regulatory Commission also urged dialogue, while consumer groups accused PENGASSAN of politicising the energy sector and warned of dire consequences for ordinary Nigerians.
Dangote Hits Back
Reacting, Dangote Refinery has accused PENGASSAN of destroying mutual understanding due to selfish interest, referencing its past antagonism to reforms and privatisation efforts.
The company called the strike directive “reckless, lawless and dangerous,” adding that it was fashioned to fuel hardship against Nigerians.
It reiterated that the sackings were as a result of safety and efficiency concerns, not anti-union victimisation, stressing that over three thousand Nigerians are still unemployed at the facility.
PENGASSAN Strike Triggers Hike
“The Dangote Group is the highest employer of labour in Nigeria and the highest contributor to tax revenues,” the company said.
“PENGASSAN should publish its own audited accounts and show what it has contributed to national development.”
Having shut down Dangote refinery and fertilizer plant, and thermal power stations stopped operations, the nationwide strike brings about a severe threat to Nigeria’s economy and government.
Also, various analysts have also warned that prolonged industrial action would imbalance fuel supplies, prompt blackouts, and mount inflationary pressures.
All hopes now hinge on Monday’s emergency meeting help by the Minister of Labour. It is yet to be known if dialogue can restore peace or Nigeria will further be plunged into crisis and hardship.
PENGASSAN Strike Triggers Hike
