Nigerians woke up on Monday to the grim reality of a nationwide strike declared by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The action threatens to unleash a double crisis: rising fuel prices and widespread power outages.

Refinery shutdown sparks market panic

The union ordered members across oil, gas, and energy companies to down tools following the dismissal of over 800 workers at the Dangote Petroleum Refinery.

Oil marketers and power companies have since warned that the strike could destabilise fuel supply, push pump prices higher, and plunge the nation into darkness.

PENGASSAN’s directive to halt crude oil and gas supplies to the $20 billion Dangote Refinery sent shockwaves through the energy market.

Marketers warned that cutting supply to the refinery would choke fuel distribution channels, forcing imports and disrupting pricing.

Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the directive could trigger “unnecessary galloping inflation” unless the government intervenes.

He urged the Minister of Petroleum to cut short his foreign trip and mediate swiftly before the situation spirals out of control.

“This strike will destabilise the market. Fuel prices will rise, power shortages will worsen, and investor confidence will erode,” Ukadike warned.

Power sector on the brink of collapse

The strike has already forced thermal power stations, which supply more than 70% of Nigeria’s electricity, to begin shutting down.

Gas suppliers issued directives to power plants to halt operations, raising fears of imminent nationwide blackouts. Joy Ogaji, Executive Secretary of the Association of Power Generation Companies, confirmed that plants received shutdown notices.

“Hydro alone cannot sustain the grid. Nigerians should brace for imminent darkness,” she warned.

With gas pipelines already sealed, experts fear grid instability and system collapse if the strike drags on.

Union’s stand: Labour rights or politics?

PENGASSAN insists the strike is about protecting Nigerian workers. The union accused the Dangote Refinery of violating labour laws and International Labour Organisation (ILO) conventions by sacking 800 workers for union membership and replacing them with foreigners.

“All crude and gas supply to Dangote Refinery must stop,” the union declared in a strongly worded resolution signed by its General Secretary, Lumumba Okugbawa.

Union president Festus Osifo vowed not to back down until the workers are reinstated.

“We will not surrender unless the affected workers are re-employed,” he said during a television interview.

Stakeholders clash over motives

The strike has split stakeholders. The Trade Union Congress (TUC) has backed PENGASSAN, accusing the refinery of union-busting and demanding reinstatement of the workers.

The TUC has also placed affiliates on red alert for wider action.

On the other hand, consumer groups and civil society bodies have accused PENGASSAN of politicising the energy sector. The Forum of Concerned Nigerian Consumers described the action as a “desperate attempt to undermine a multi-billion-dollar investment.”

The Nigerian Independent System Operator also cautioned that prolonged disruptions could cripple grid operations.

Dangote Refinery fights back

Dangote Refinery has strongly rejected PENGASSAN’s claims, describing the strike order as “reckless, lawless, and dangerous.”

The company insisted the dismissals were based on efficiency and safety concerns, not anti-union victimisation.

“The Dangote Group remains the largest employer of labour in Nigeria and the highest contributor to tax revenues,” the company said in a statement.

“PENGASSAN should publish its audited accounts and show its own contribution to national development.”

Despite the shutdown, the refinery stressed that over 3,000 Nigerians remain employed at the facility.

Government scrambles to intervene The Minister of Labour and Employment, Muhammad Dingyadi, has summoned both parties for an emergency meeting in Abuja.

He appealed to PENGASSAN to suspend its strike, warning that the action would worsen hardship for millions of Nigerians.

“The strike will not only lead to revenue losses but also inflict severe pain on citizens,” the minister cautioned.

Regulators, including the Nigerian Upstream Petroleum Regulatory Commission, have also called for dialogue, urging both sides to prioritise national stability.

What lies ahead for Nigerians?

With fuel supplies threatened, power plants shutting down, and inflation looming, analysts warn the strike could become one of Nigeria’s most disruptive labour disputes in years.

Whether calm is restored or the crisis deepens will depend on Monday’s high-stakes negotiations between PENGASSAN, the Dangote Refinery, and the federal government.

For millions of Nigerians, the fear is already real: longer queues at petrol stations, blackouts across homes and businesses, and higher prices in the markets.