BUSINESS AND ECONOMY

Fuel Price and Power Supply at Risk as Oil Workers Begin Strike

PENGASSAN’s nationwide strike halts gas and crude supplies, threatening Nigeria with fuel scarcity and blackouts.

Marketers warn soaring prices and collapsing power grids could push the country into deeper economic turmoil.

Nigerians could face fuel shortages and power outages as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) starts a nationwide strike today. The union has ordered a stop to crude oil and gas supplies to the Dangote Petroleum Refinery, sparking concerns among oil marketers and power generation companies.

According to the Independent Petroleum Marketers Association of Nigeria, halting supplies could destabilize fuel prices and worsen electricity shortages. The strike also threatens to shut down thermal power plants, which produce most of the country’s electricity.

PENGASSAN announced the action on Sunday after more than 800 Nigerian workers were dismissed at the Dangote refinery. In a statement signed by General Secretary Lumumba Okugbawa, the union accused the refinery of breaching labour laws and replacing sacked workers with foreign staff.

“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the union said. It also alleged that soldiers had prevented its members from cutting gas supplies to the plant.

PENGASSAN President Festus Osifo told Channels Television that the strike had already forced the shutdown of the refinery and fertilizer plant, though the diesel unit was still running as of Sunday evening. He said the strike would continue until the sacked workers were reinstated.

Independent marketers warned that without government action, fuel prices could rise and inflation could worsen. IPMAN spokesperson Chinedu Ukadike urged the Minister of Petroleum to return from his foreign trip to resolve the crisis.

Power generation companies also raised alarm. Joy Ogaji, head of their association, said gas suppliers had asked thermal plants to halt operations, warning that “hydros alone cannot sustain the system.” With thermal stations supplying more than 70 percent of electricity, the shutdown could lead to blackouts and a national grid collapse.

The Trade Union Congress backed PENGASSAN, accusing the refinery of violating workers’ rights and demanding the reinstatement of all dismissed staff.

Meanwhile, the Minister of Labour and Employment, Muhammad Dingyadi, appealed to the union to suspend the strike to allow talks to take place. The Nigerian Upstream Petroleum Regulatory Commission also called for dialogue.

In response, Dangote Refinery accused the union of sabotage and insisted the dismissals were due to safety and efficiency concerns, not anti-union activity. The company said it still employed more than 3,000 Nigerians and described the strike order as “reckless and dangerous.”

Analysts warn the strike could destabilize fuel supplies, trigger blackouts and increase inflationary pressure. An emergency meeting called by the Minister of Labour today is expected to determine whether the dispute can be resolved or if the crisis will deepen.

Oluwadara

Oluwadara Akingbohungbe is a journalist, author, speaker, and consultant with a Political Science degree and nearly a decade of experience, passionate about… More »

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