Nigeria’s Power at Risk: Dangote – PENGASSAN Dispute Could Trigger Grid Collapse

Nigeria’s Power at Risk: Dangote-PENGASSAN Dispute Could Trigger Grid Collapse

 

 

The Nigerian Independent System Operator (NISO) has raised the alarm over the potential threat to the nation’s electricity supply following the ongoing industrial dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery.

 

In a statement released Sunday night, NISO emphasized that the national grid depends heavily on gas-fired power plants to meet electricity demands. It warned that any prolonged disruption in natural gas supply could sharply reduce generation capacity, destabilize system operations, and undermine the reliability of electricity across the country.

 

The warning comes after PENGASSAN reportedly issued directives to suspend the supply of crude oil and natural gas to Africa’s largest single-train refinery, valued at $20 billion, over unresolved labour issues.

 

NISO said contingency measures are being explored to prevent a total collapse of the national grid. However, it stressed that the long-term consequences of a sustained disruption in gas supply could be severe.

 

The statement reads:

“The Nigerian Independent System Operator has observed with concern the ongoing dispute between PENGASSAN and Dangote Refinery, which has resulted in directives to suspend the supply of crude oil and natural gas to the facility.

 

The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations, and undermine the stability and reliability of electricity supply across the country.

 

While NISO is considering measures to mitigate total grid collapse, we urge all parties involved to embrace dialogue and lawful mechanisms of dispute resolution in the overall interest of the economy and the well-being of Nigerians at large.

 

We reaffirm our commitment to ensuring a secure and reliable operation of the national grid and will continue to support wider efforts aimed at safeguarding energy security.”

 

The dispute follows Dangote Refinery’s recent sacking of 800 workers, which PENGASSAN said necessitated industrial action. The labour union has insisted that unresolved grievances could escalate if ignored, prompting the suspension of crude oil and gas supply.

 

Energy experts have expressed concern that any interruption in gas supply to the refinery could ripple across Nigeria’s power sector, leading to potential load shedding and reduced electricity supply to homes, businesses, and critical infrastructure.

 

NISO appealed to both parties to resolve their differences through dialogue and lawful dispute-resolution mechanisms. The operator stressed that safeguarding the national grid is crucial for maintaining energy security and sustaining economic activities nationwide.

 

The development has drawn attention from industry stakeholders, who warn that prolonged grid instability could have far-reaching consequences for domestic and industrial electricity consumers.