Nigerians are bracing for tougher days as the nationwide strike declared by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) begins today (Monday), raising fears of crippling fuel shortages and widespread power outages.

The union’s directive to halt crude oil and gas supplies to the Dangote Petroleum Refinery has rattled the energy sector, with oil marketers warning of severe disruptions in fuel distribution that could drive up pump prices and trigger fresh inflationary pressure.

Compounding the crisis, power generation companies have confirmed the shutdown of all thermal plants responsible for more than 70 per cent of Nigeria’s electricity supply, following notices from gas suppliers to halt production. With hydro stations unable to sustain the grid alone, the nation faces the prospect of widespread blackouts unless the Federal Government intervenes.

On Sunday, PENGASSAN announced the commencement of an indefinite strike, directing all members in offices, companies, and agencies nationwide to cease operations from 12:01 am on Monday, September 29, 2025. The decision followed the dismissal of more than 800 Nigerian workers at the Dangote Refinery, whom the union said were sacked for joining its ranks.

In a strongly worded resolution signed by General Secretary, Lumumba Okugbawa, the union accused the refinery of violating labour laws and International Labour Organisation conventions by replacing the affected workers with foreigners.

“All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the resolution read. “All International Oil Company branches must ramp down gas production and supply to Dangote Refinery and petrochemicals.”

The union also alleged that military personnel had been deployed to prevent its members from cutting gas supplies, an accusation yet to be addressed by security authorities.

PENGASSAN President, Festus Osifo, told Channels Television on Sunday that the strike directive had already forced a total shutdown of the refinery and fertiliser plant, though the diesel plant was still operating. He vowed the strike would not be suspended unless all sacked workers were reinstated.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that the disruption could destabilise the downstream sector, erode investor confidence, and worsen Nigeria’s fragile electricity supply.

“There is no market stability and no return on investment,” said IPMAN’s National Publicity Officer, Chinedu Ukadike. “Disruption of crude and gas supply will trigger fuel price hikes and worsen power shortages. Unless the Federal Government acts swiftly, this crisis could spiral into unnecessary galloping inflation.”

Ukadike urged the Minister of Petroleum to cut short his foreign trip and return home to mediate, recalling that during a past NUPENG dispute, the minister aborted a trip abroad to resolve the crisis.

The Association of Power Generation Companies (APGC) also sounded the alarm, saying gas suppliers had directed thermal plants to shut down. “Please all be notified of imminent darkness, as hydros alone cannot sustain the system,” said Executive Secretary, Joy Ogaji.

She confirmed the shutdown of the Escravos-Lagos Pipeline System II, which feeds the Dangote Petrochemical Plant, noting that “only the Line Packed gas left in the system” was available on Sunday.

While the Trade Union Congress (TUC) threw its weight behind PENGASSAN, demanding reinstatement of the sacked workers and an independent probe into the refinery’s labour practices, some consumer groups accused the union of playing politics with Nigeria’s energy sector.

The Forum of Concerned Nigerian Consumers urged the Department of State Services to intervene, warning that the strike could drag the country back into fuel scarcity. “This is a desperate attempt to undermine a multi-billion-dollar facility critical to Nigeria’s future,” forum president, Olabisi Taiwo, said at a press briefing in Abuja.

The Nigerian Independent System Operator also cautioned that prolonged disruption could undermine grid stability, warning of “system collapse” if gas supply to power stations remains cut.

In its response, Dangote Refinery described PENGASSAN’s action as “reckless, lawless, and dangerous,” accusing the union of sabotage and selfish interests.

“The dismissals were based on safety and efficiency concerns, not anti-union victimisation,” the company said in a statement. “More than 3,000 Nigerians remain employed at the facility. PENGASSAN should publish its own audited accounts and show what it has contributed to national development.”

The company stressed that it remains Nigeria’s largest private employer and one of the highest contributors to tax revenues, dismissing the union’s allegations as politically motivated.

The Minister of Labour and Employment, Muhammad Dingyadi, has convened an emergency meeting for today between PENGASSAN and Dangote management in a bid to resolve the standoff. He appealed to the union to suspend the strike, warning that prolonged disruption would deepen hardship for Nigerians and erode investor confidence.

With the refinery and fertiliser plant shut, marketers bracing for fuel scarcity, and GenCos warning of imminent darkness, Nigeria faces one of its most serious industrial showdowns in recent years.

Whether the government can broker peace or whether the strike spirals into a full-blown energy crisis, may well be decided in the hours ahead.