Nigeria’s Power, Oil Sectors Face Shutdown As Union Halts Supply To Dangote Refinery

Nigeria’s power and petroleum sectors are on the verge of a total shutdown as the dispute between members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery has escalated dramatically.

In an unexpected turn of events, the union has done the unthinkable by directing its members across key oil and gas companies to halt the supply of crude oil and gas to Dangote Refinery.

In a memo issued to branch chairmen in TotalEnergies, Renaissances, Chevron, Shell Nigeria Gas, Oando, and Seplat Producing Nigeria Unlimited dated September 26, 2025, the union directed the immediate shutdown of valves and suspension of all crude loading operations to the facility.

“Natural Gas Infrastructure Company (NGIC) chairman, ensure that gas supply to the refinery is cut off effective immediately,” the directive read in part.

The union’s directive comes just days after Dangote Refinery disengaged about 800 workers, describing the exercise as part of an ongoing reorganisation to protect the facility from repeated acts of sabotage that had raised safety concerns and hampered operations.

The union’s action will not only affect Dangote Refinery but also curtail power generation in the country, as many thermal plants rely on gas supply to operate.

Sources within the power generation companies (GenCos) revealed that they have been instructed by gas suppliers to shut down their thermal power plants following directives from PENGASSAN.

A source within the GenCos told this portal that some companies have already started shutting down their plants in compliance with the union’s directive.

Data obtained by this portal shows that power allocation to distribution companies has dropped sharply—evidence that thermal plants have shut down, leaving only hydro plants to keep the grid running.

Source: https://energynewsafrica.com