A major industrial dispute is brewing between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Petroleum Refinery, following a directive by the union to halt gas and crude oil supplies to the facility.

In a letter signed by its General Secretary, Comrade Lumumba Okugbawa, on Friday, PENGASSAN accused the refinery’s management of unfair labour practices, including the disengagement of unionised workers, and of embarking on “a mission of misinformation and propaganda” rather than constructive engagement with the union.

The association instructed its branch chairmen, particularly those in the Nigerian Gas Infrastructure Company (NGIC), to enforce an immediate shutdown of all gas supply lines to the refinery. The directive also ordered the closure of crude oil supply valves and suspension of all vessel loading operations destined for the refinery.

However, the Dangote Refinery, in a strongly worded statement on Saturday, condemned the union’s move, describing it as a “brazen, albeit shocking, display of lawlessness and criminality.” The company argued that PENGASSAN lacked the legal authority to interfere with contracts between the refinery and its third-party suppliers.

“Absolutely no law gives PENGASSAN the right to direct its branches to cut off gas and crude oil supplies to Dangote Refinery. Those supply contracts were not entered into with PENGASSAN but with independent vendors and suppliers,” the statement read.

The refinery further alleged that the union’s directive amounted to economic sabotage, warning that a disruption of operations would halt the production and distribution of critical petroleum products such as aviation fuel, petrol, kerosene, diesel and cooking gas—commodities vital to the daily lives of Nigerians.

“PENGASSAN’s action, if implemented, would jeopardise the nation’s energy security and threaten revenues. Dangote Refinery is one of the largest contributors to government income at both federal and state levels, and such contributions would be immediately at risk,” it added.

The company also accused the union of abandoning due process, noting that PENGASSAN had earlier pledged to pursue legal action against the refinery but had instead resorted to directives that could cause “mayhem, anarchy, and hardship for Nigerians.”

In its defence, PENGASSAN maintains that its action is a legitimate response to what it describes as management’s high-handedness and disregard for the rights of workers. The union insists that the disengagement of unionised staff without proper negotiation undermines industrial harmony.

The clash has now drawn national attention, with the refinery urging the Federal Government and security agencies to intervene swiftly to prevent disruptions to petroleum product supplies.

Observers warn that unless both sides de-escalate the dispute, the fallout could significantly affect the country’s fuel distribution network and place additional strain on an already fragile economy.