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Dangote-PENGASSAN Feud Cuts 1,000MW as Depots Shut Down
Nigeria has lost about 1,000 megawatts of electricity after a dispute between Dangote Industries and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) forced key depots to shut down.....KINDLY READ THE FULL STORY HERE▶
The shutdown, which began earlier this week, has disrupted gas supply to power plants and worsened electricity shortages across the country. Officials said the conflict centers on labor disputes involving staff at Dangote’s operations.
The Transmission Company of Nigeria (TCN) confirmed on Thursday that reduced gas deliveries to thermal plants have triggered a sharp drop in generation, leading to longer blackouts for homes and businesses.
“About 1,000MW has been lost due to the cut in gas supply from affected depots,” a senior TCN official said. “This has increased the strain on the national grid.”
Dispute Between Union and Dangote
The crisis stems from disagreements between Dangote management and members of PENGASSAN over labor conditions and union rights. PENGASSAN accused the company of unfair labor practices, while Dangote Industries said it was addressing concerns in line with the law.
Union leaders said the shutdown was necessary after talks with the company failed to resolve issues of welfare, safety, and recognition of workers’ rights.
“This action was not taken lightly,” a PENGASSAN spokesperson said. “Our members have endured poor conditions for too long. Until their voices are heard, operations cannot continue as normal.”
Dangote Group, in a brief statement, urged calm and said discussions were ongoing to resolve the matter. “We are engaging with all stakeholders to restore operations quickly,” the company said.
Impact on Power Supply
Nigeria already struggles with limited electricity supply, with national generation often hovering around 4,000MW for a population of more than 200 million. Losing another 1,000MW represents a major setback.
Analysts warned the dispute could worsen an already fragile grid and deepen economic hardship. Small businesses, which rely heavily on power for daily operations, may be forced to spend more on diesel generators as blackouts spread.
“This is a double blow,” said energy analyst Adebayo Folarin. “Not only are households facing longer hours without power, but industries will also see higher costs, which could feed into inflation.”
Government Response
The Ministry of Labour and Employment said it has opened talks with both sides to find a quick resolution. Officials urged PENGASSAN to suspend the shutdown in the interest of national stability, while also calling on Dangote Industries to address legitimate worker concerns.
“The government cannot allow this dispute to cripple the economy further,” a ministry representative said. “We are confident that dialogue will prevail.”
The Nigerian Electricity Regulatory Commission (NERC) has also been monitoring the situation. It warned that prolonged disruption of gas supplies could cause instability in the grid.
Background
PENGASSAN is one of Nigeria’s most powerful labor unions, representing senior staff across the oil and gas sector. It has a history of confronting companies and government agencies over wages, benefits, and working conditions.
Dangote Industries, led by billionaire Aliko Dangote, runs businesses across cement, sugar, and now oil refining. Its new refinery in Lagos is expected to transform Nigeria’s fuel sector, but tensions with labor groups have added complications.
The latest standoff highlights the importance of gas in Nigeria’s electricity sector. About 70% of the country’s power generation depends on gas-fired plants, meaning any disruption in supply quickly affects output.
What’s Next
Energy experts said restoring power will require resolving the labor dispute swiftly. Prolonged shutdowns could worsen public frustration with power shortages and pile pressure on the government to intervene.
“This is not just about Dangote or PENGASSAN,” said Lagos-based consultant Chika Obi. “It is about Nigeria’s fragile energy system. A single dispute should not take out a quarter of our supply.”
For now, millions of Nigerians are bracing for longer nights without electricity as negotiations continue. The outcome of the talks will determine how quickly the lost megawatts return to the grid.
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