THE industrial dispute between Dangote Refinery and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has caused most generating plants across the country to shut down, which depletes power supply to gas-powered stations.
This Nigerian Independent System Operator (NISO) confirmed that industrial actions within the supply chain triggered widespread gas shortages that resulted in a reduction of power generation by 1,100 megawatts by Sunday night.
The system operator also confirmed that available generation on the National grid fell sharply from over 4,300MW in the early hours of Monday, September 28, to about 3,200 to about 3,200MW at the lowest point.
Currently, most major cities, including Lagos and Abuja, are without light, with socio-economic lives of Nigerians adversely affected.
In a statement obtained by The ICIR in the early hours of Tuesday, September 30, NISO stated that the development heightened pressure on the grid, promoting emergency measures to stabilise supply and avert a nationwide blackout.
In an effort to address the concern, NISO said it ramped up generation from major hydropower stations, injecting over 400 megawatts (MW) to cushion the shortfall from gas-fired plants.
The agency further stated that it also implemented real-time load adjustments, frequency support measures, and selective load shedding to maintain operational security.
The agency reaffirmed its commitment to proactive grid management and best-in-class operational practices to guarantee a reliable electricity supply despite emerging challenges.
“The Nigerian Independent System Operator (NISO) wishes to notify the public of recent major generation shortfalls on the national grid, caused by industrial actions of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) within the gas supply chain.
The ICIR reports that shutting down power-generating plants comes with consequences which expose the machines to losses, and in some cases, grid collapse.
Experts in the power sector have lamented the increasing impact of grid collapses on Generating Companies (GenCos) in Nigeria, citing that in 2024 alone, each incurred at least N21,873,684,285 in financial losses.
A power sector expert, Stephen Ogaji, told The ICIR that apart from great revenue loss due to the inability to generate power into the grid, grid collapse affects not only the utilities but also the entire economic system that depends on a stable power supply.
Ogaji stressed that grid collapses and forced shutdowns on thermal generating plants lead to a decrease in capacity utilisation, resulting in a decrease in revenue by the station, poor efficiency in gas utilisation, poor utilisation of contracted gas on take-or-pay commitment, and deterioration or damage of key mechanical and electrical equipment during frequent startups and shutdowns, among others.
PENGASSAN, Dangote meeting with FG deadlocked
Meanwhile, the Federal Government’s efforts to broker peace between the management of Dangote Refinery and the Petroleum and PENGASSAN over alleged mass sack of union members ended in a deadlock on Monday night.
The ICIR reports that the meeting, which commenced at about 3:50 p.m. at the Minister of Labour and Employment’s Conference Hall in Abuja, stretched into the late hours.
However, it broke up a few minutes after midnight without any agreement.
Informed sources said talks are expected to resume at 2 p.m. Tuesday, September 30.
Recall, the Federal Government, worried about the potential impact of the dispute on the nation’s economy and energy security, had summoned both sides to the negotiating table following reports of widespread discontent.
The rift stemmed from allegations by PENGASSAN that Dangote Refinery had embarked on the mass transfer and sack of union members.
Also, he allegedly replaced some Nigerians with foreign nationals, a claim the company has consistently denied.
At the meeting, PENGASSAN was led by its President, Festus Osifo, alongside the General Secretary of the Trade Union Congress of Nigeria, TUC, Nuhu Toro.
The Minister of Labour and Employment, Mohammad Dingyadi, led the government delegation, while Dangote Refinery was represented by senior management officials.
The session, originally scheduled for 2 p.m., began around 3:50 p.m. due to the late arrival of key stakeholders, before moving into a closed-door discussion that lasted several hours.
The Minister appealed to both parties to demonstrate good faith in dialogue, stressing that industrial peace in the oil and gas sector was critical at a time Nigeria is banking on the Dangote Refinery to boost local refining capacity and reduce dependence on imported petroleum products.
The deadlock means tension remains high, with PENGASSAN insisting its members will not return to work until alleged anti-labour practices are reversed, while Dangote Refinery maintains that its restructuring exercise is in line with global best practices.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.