Dangote says order will trigger fuel queues, price hikes, revenue loss • Resumes petrol sale in naira
Fresh crisis is brewing in the oil sector, which could lead to scarcity of Premium Motor Spirit across the nation.
This development is as a result of the order issued by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to suspend the supply of gas to the Dangote Petroleum Refinery. The order came following the sack of 800 petroleum workers by the Dangote Refinery last Friday.
Already, there were fears of likely price hike when Dangote Refinery announced it had suspended petrol sales in naira starting from Sunday, September 28, 2025.
But in another statement on Saturday evening, the refinery said it had resumed selling its petroleum products in naira. The development, according to Dangote Refinery, was made possible following the intervention of the chairman of the Naira-for-Crude Transaction Committee.
The statement read: “Following the intervention of the Naira for Crude Transaction Committee Chairman, we are pleased to inform you of the resumption of PMS sales in naira commencing immediately.
“You may kindly proceed to place your orders in naira for both self-collection and free delivery of PMS to the earlier advised locations across the country.”
The company explained that the “temporary suspension of naira-denominated petrol sales, announced on Friday and initially scheduled to take effect from Sunday, 28 September, has been lifted.
“Dangote Refinery urged customers to disregard the earlier suspension notice, assuring that sales would continue without interruption to guarantee affordable petrol supply for Nigerians.”
In a related development, Dangote Petroleum Refinery also warned that the recent directive issued by the PENGASSAN to cut crude oil and gas supplies to the refinery could plunge Nigerians into fresh rounds of fuel scarcity while inflicting huge revenue losses on the government.
Recall that PENGASSAN’s General Secretary, Comrade Lumumba Ighotemu Okugbawa, in a letter signed and dated September 26, 2025, directed all members, especially those in the Nigerian Gas Infrastructure Company (NGIC) branch, to halt gas supply to the $20 billion Dangote Refinery without further delay.
The union also directed the shutting of crude oil supply valves and suspending loading operations for vessels meant for the facility.
The letter read: “We bring you fraternal greetings from the national secretariat. As you are aware, the management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to being unionised.
“They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.
“Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the refinery should be shut. The loading operation for vessel headed there should be halted immediately.
“NGIC chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summon are to report promptly the progress of the directive.”
But in a statement released on Saturday, Dangote Refinery described the directive as “criminal, reckless, and an act of economic sabotage” that, if enforced, would disrupt the production and nationwide supply of critical petroleum products, including petrol, diesel, aviation fuel, kerosene, and cooking gas.
The company stressed that these products are indispensable to daily life and the economy, warning that Nigerians at every level, from households to businesses and industries, would bear the brunt of shortages. It noted that a sudden disruption in supply will translate into insufferable hardship for millions of Nigerians.
“The products that would be disrupted and stopped include but are not limited to aviation fuel, petrol, kerosene, diesel and cooking gas – all products that are used and required by all stripes of Nigerians and persons living in Nigeria, whether high and mighty or lowly and ordinary. In what circumstance would it be justified for PENGASSAN to so disrupt and introduce insufferable hardship into the living conditions of Nigerians? None that we can see.
“The follow-up question is, in whose interest and on whose behalf is PENGASSAN directing and intending to inflict such anarchic and criminal disruption upon the Nigerian society and persons living in Nigeria? Most certainly, not in the interest of the Nigerian State and/or the Nigerian public and citizens,” the company said.
Beyond the immediate hardship on citizens, Dangote Refinery warned that the government’s revenue would also be dented, given the refinery’s status as one of the country’s largest taxpayers and contributors to both federal and state coffers. The company said any pause in operations would stall contributions to the national purse and undermine investor confidence in Nigeria’s oil and gas sector.
The statement noted, “This is also economic sabotage against the Nigerian State at multiple levels. Dangote Refinery is the only refinery of its type in Africa and ordinarily should be the pride of all Nigerians as well as the governments of Nigeria. It should ordinarily have special protection and status and indeed qualifies as a strategic national asset.”
It added that an irreparable injury to the Dangote Refinery, such as PENGASSAN has directed, constitutes a national embarrassment to the country and a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery to contemplate investing in Nigeria’s oil and gas sector or generally.
“PENGASSAN may also not be aware that Dangote Refinery is one of the largest contributors to the revenue purse of the Nigerian governments – both Federal and sub-national. That contribution is currently threatened by PENGASSAN and would of course be paused if and as soon as and for as long as the PENGASSAN directive is implemented by its branches,” it noted.
The statement also noted that PENGASSAN had no legal authority to interfere in supply contracts between the refinery and its vendors, insisting that the action undermined the rule of law.
“Absolutely no law gives PENGASSAN the right to direct its branches to ‘cut off’ gas and crude oil supplies to Dangote Refinery or at all. There is also no law in our statute books that would support or enable the PENGASSAN branches to ‘cut off’ gas and crude oil supplies to Dangote Refinery or at all. Besides, it constitutes a criminal conduct for PENGASSAN or its members to disrupt and/or interfere howsoever in the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil to the Refinery. Those supply contracts were not entered into with PENGASSAN; they were entered into by Dangote Refinery with third-party vendors and suppliers and PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts,” the statement said.
Calling on the Federal Government and security agencies to act swiftly, the refinery urged Nigerians to take note of the “unquantifiable and irredeemable hardship which PENGASSAN wishes to inflict on all of us” if not checked, warning that fuel queues, energy shortages and price hikes could quickly resurface.
It also urged PENGASSAN to submit to amicable and legal resolution and not resort to economic sabotage and mob action that could introduce mayhem and chaos and easily translate into anarchy.
Reps to Intervene
Meanwhile, the House of Representatives has reiterated its resolve towards amicable resolution of the lingering crisis between Dangote Group and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
Chairman, House Committee on Petroleum Resources (Downstream), Hon. Ikenga Ugochinyere, gave the assurance at the closing ceremony of a high-level three-day retreat held in Lagos State.
He also disclosed that the committee will leave no stone unturned in its inquiry into the circumstances surrounding the OVH/NNPCL acquisition, the challenges being faced by refinery owners in their quest to access crude supply to their refineries/issue of premium and the state of the refineries before and after the shutdown.
According to him, the 3-day retreat was in preparation for the commencement of full-scale investigation into the NNPCL’s acquisition of OVH Energy Marketing’s downstream assets and refinery upgrade, in line with the resolution passed by the House for the reinvestigation of the matter after the first report was turned down.
The retreat was attended by federal lawmakers, industry stakeholders, union representatives, and regulatory bodies to address mounting concerns over alleged monopolistic practices, substandard petroleum products, and the marginalization of key players in the sector.
In his remarks, Hon. Ugochinyere explained that the forthcoming investigation is distinct from the previous inquiry carried out by the former committee.
Hon. Ugochinyere emphasised the committee’s commitment to “delivering real reforms that will ensure efficiency, fairness, and competitiveness across the board,” adding that the retreat marks a turning point in legislative oversight of the sector.
He stated that as they have commenced the investigation and the general public is invited to make inputs before the lawmakers present their recommendations on the floor of the house.
He said those with information and submissions should submit it to the Clerk of the House Committee on Petroleum (Downstream).
He explained that one of the major causes of delay was the failure of certain stakeholders to submit vital documents, but the committee has resolved to move forward with or without those submissions and complete the assignment as mandated by the House.
The committee also vowed to mediate between Dangote Group and NUPENG to prevent further escalation and ensure that all stakeholders are fairly represented. Reports from the sub-committees are expected in the coming weeks, forming the basis for potential legislative interventions.
The lawmakers also applauded the leadership of NMDPRA, led by Alhaji Farouk, Dangote Refinery led by Alhaji Aliko Dangote, modular refinery owners and other key stakeholders for the massive efforts and investments being deployed to engender a working and productive downstream sector that is now guaranteeing energy security for Nigeria.
Hon. Ugochinyere expressed optimism that the outcome of the retreat would reshape the downstream petroleum landscape and restore confidence in regulatory governance, as Nigeria navigates its energy transition and economic recovery.
Source:Africa Publicity
