October 05, (THEWILL) — The Nigerian economy may have suffered over N180 billion industry-specific loss in the recent strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) which lasted for three days.
PENGASSAN embarked on the industrial action on September 28, to protest what they called an anti-labour decision at the Dangote Refinery in Lagos concerning the disengagement of a number of the workers, numbering about 800.
THEWILL reports that both PENGASSAN and the management of the 650,000 barrel-per day refinery had been at loggerheads. The rift stemmed from allegations by PENGASSAN that the Dangote Refinery engaged in mass transfers and sackings of union members, while also replacing some Nigerians with foreign nationals, claims that the company consistently denied.
The refinery’s management stated that the workforce reorganisation was due to operational requirements and not related to union activities.
The standoff escalated when the union embarked on an industrial action by halting gas and crude oil supplies to the refinery, raising the alarm over potential disruptions to the nation’s energy supply and economic stability.
This prompted the Nigerian National Petroleum Company Limited (NNPCL), Group Chief Executive Officer, Bashir Ojulari, to raise the alarm over the potential economic and security consequences of the development.
In a letter written to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian Upstream Petroleum Regulatory Commission, Ojulari explained that the now suspended strike led to 16 per cent oil production and 30 per cent marketed gas losses, while the nation suffered a 20 per cent power supply shortfall.
The national oil company’s letter, dated 29 September 2025 and titled ‘Impact Assessment of ongoing industrial action,’ was also sent to the National Security Adviser and the Director General, Department of State Services.
The industrial action caused by a rift between the union and the Dangote Refinery forced the shutdown of major oil terminals, gas plants and power facilities, leading to the deferment of 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, choking off vital income streams from the country’s two biggest revenue sources.
In calculating the aggregate loss, the deferred 283,000 barrels of crude per day at the prevailing price of $64.85 per barrel, for the three days the strike lasted, amounted to $55,057,650 million. At an exchange rate of N1,500/US$1, this translates to N82.5 billion.
According to the Nigerian Upstream Petroleum Regulatory Commission Nigeria’s gas production is 7.59 billion standard cubic feet (bscf) out of which 7.6 percent or 0.54 bscf is flared, leaving 7.05bscf marketable gas. At N3,376 per bscf, this amounts to N70.8 billion for three days.
According to an Energy/Economic expert at the Transmission Company of Nigeria (TCN) who pleaded for anonymity as he does not have the authority of the employer to comment on the matter, the 20 percent power supply shortfall, culminated to N23.7 billion at N7.9 billion per day,
Going by the linkage associated with economic activities resulting in a wide range of direct and indirect employment, the estimated loss for the three-day strike is far-reaching and well over industry-specific losses.
“It is difficult to assess the real economic loss that the oil and gas union strike created, but it runs into trillions because of other businesses that are affected and whose productivity are linked to industry-specific activities. Think of the petrol stations, transporters, food vendors, gas suppliers, households, small and medium enterprises, and many others. The loss should be in trillions,” said Dr Anthony Amaugo, an economist.
However, the PENGASSAN has been widely condemned by Nigerians who accuse them of economic sabotage, selfish interest and greed.
The Dangote Refinery had no kind words for the senior and junior staff unions of the oil and gas industry.
The refinery described PENGASSAN’s claim that it hired 2,000 Indians as replacement to the “over 800 presumably sacked Nigerians” as erroneous.
The statement read: PENGASSAN has not joined issues with us on these factual assertions; rather, it continues to peddle the falsehood that Dangote Refinery has sacked all Nigerians working in the refinery and presumably hired over 2,000 Indians to replace them.
“That is complete falsehood. We also stated in the release that there is an ongoing reorganisation with the Dangote Refinery which has resulted in the discharge of a very small number of staff and that the exercise is not arbitrary, but it is being carried out in the interest of the refinery.
“These facts have not been rebutted by PENGASSAN, neither has its oligarchs attempted to verify the truth. Rather, it continues to peddle the falsehood that we have sacked over 800 members of PENGASSAN for joining the union.”
In another statement, the refinery described PENGASSAN’s later directive to cut crude oil and gas supplies to the facility as another act of economic sabotage designed to inflict untold hardship on Nigerians.
“Indeed, over time, the association has consistently proved itself as serving interests other than those of Nigerians and Nigerian workers,” the statement declared.
Dangote recalled that in 2007, when the Federal Government sold its moribund Port Harcourt and Kaduna refineries to Blue Star Consortium led by the Dangote Group for $750 million, it was PENGASSAN and its ally, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), that sabotaged the deal.
“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,” the company said.
The refinery also faulted the union’s role in the much-publicised rehabilitation of the Port Harcourt Refinery, describing it as a ‘ruse,’ which PENGASSAN “knowingly celebrated despite being a scam on Nigerians.”
The statement further accused the union of opposing amendments to the Petroleum Industry Act (PIA) that would have freed up federal liquidity and attracted private-sector funding into Nigeria’s upstream oil ventures.
Beyond policy obstruction, Dangote Refinery accused the association of mismanaging billions of naira in annual check-off dues to bankroll the ‘lavish lifestyles’ of its leaders, without accountability to members.
By contrast, the refinery highlighted its own record of economic contributions within a short period, citing road construction, worker training, the creation of thousands of Nigerian jobs, and a compensation structure that “out-distances the best in the Nigerian oil and gas industry.
“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 and subscriptions, lived up to?” the statement queried, challenging the union to publish its audited accounts for the past 10 years. “Can it publish publicly its account for the last 10 years and list out its corporate responsibility activities within that time frame?”
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
