Nigeria’s energy sector was thrown into fresh uncertainty yesterday as the $20bn Ɗangote Petroleum Refinery faced simultaneous blows: suspension of petrol sales in naira and a union-ordered shutdown of crude oil and gas supplies.
In a notice to customers late Friday, Ɗangote Refinery announced it would stop selling petrol in naira from Sunday, September 28, citing depletion of its crude-for-naira allocation. The company explained that it had been selling “in excess” of its allocation under the Federal Executive Council’s policy to stabilise pump prices and reduce dollar demand. Customers with pending naira transactions were advised to seek refunds.
This marks the second suspension of the naira-sales policy this year, after a brief halt in March that was reversed following government intervention. Officials had repeatedly described the crude-for-naira scheme as a key economic directive to bolster local refining and shield the naira from forex pressures.
However, just as marketers braced for the fallout of the suspension, the refinery was hit by a separate industrial crisis. The Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN), ordered seven of its branches in upstream and midstream companies — including TotalEnergies, Chevron, Seplat, Oando, Shell Nigeria Gas, Renaissance, and the Nigerian Gas Infrastructure Company — to cut-off all crude and gas supplies to the facility.
In a letter signed by General Secretary, Lumumba Okugbawa, the union accused the refinery of sacking members for joining PENGASSAN, withdrawing staff buses, and discriminating against local workers. It threatened to escalate further by picketing the refinery.
Ɗangote Petroleum Refinery, however, rejected the allegations, insisting only a few staff were affected in what it called a “reorganisation to curb sabotage” within the plant. The company said it still employs more than 3,000 Nigerians.
The twin crises — a halt in naira-based fuel sales and the union blockade of feedstock supply — have stoked jitters of fresh fuel scarcity and rising petrol prices nationwide.
Analysts warn that the developments could also rattle Nigeria’s foreign exchange market, forcing marketers to source dollars for imports and piling fresh pressure on the Naira.
