The Nigerian Independent System Operator (NISO) has expressed serious concerns regarding the ongoing conflict between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery, highlighting its potential repercussions on Nigeria’s electricity infrastructure.
This dispute has resulted in orders to halt the delivery of crude oil and natural gas supplies to the refinery, raising alarms about the stability of the national power grid.
In an official statement released on Sunday, NISO emphasized that the country’s power supply is heavily dependent on gas-powered generation plants. Any prolonged interruption in gas availability could severely limit electricity production, disrupt grid operations, and jeopardize the overall reliability and stability of power delivery nationwide.
To prevent a complete collapse of the grid, NISO is actively exploring contingency plans and mitigation strategies.
“We want to highlight the serious consequences this conflict could have on Nigeria’s power sector. Given the national grid’s reliance on gas-fired plants, sustained interruptions in gas supply will reduce generation capacity, impair system functionality, and threaten the consistent delivery of electricity across the country,” the statement read.
“While we are working on measures to avert a total blackout, we strongly encourage all stakeholders to engage in constructive dialogue and pursue lawful dispute resolution methods for the benefit of the nation’s economy and the welfare of Nigerians,” NISO added.
“We reaffirm our dedication to maintaining a secure and dependable national grid and will continue to support initiatives aimed at protecting Nigeria’s energy security,” the statement concluded.
Reports indicate that PENGASSAN had earlier instructed its members to disrupt operations at Dangote Refinery by cutting off gas supplies. This move was a response to the refinery’s management decision to terminate the employment of certain union members. The union also accused the refinery of disseminating false information to justify these dismissals.
Furthermore, PENGASSAN called on its members nationwide to commence a withdrawal of services starting midnight on September 28, protesting what it described as unfair labor practices and discrimination against Nigerian workers. This situation has prompted intervention from the federal government.
In retaliation, Dangote Refinery labeled the union’s directive as unlawful, urging PENGASSAN to comply with Nigerian laws. The refinery stressed that the union lacks the legal authority to interfere with its contracts involving third-party suppliers of gas and crude oil.
The refinery appealed to the federal government and security agencies to step in and restrain PENGASSAN’s actions, warning that such disruptions could inflict substantial damage on Nigeria’s economy and its citizens.
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On Saturday, the House of Representatives Committee on Petroleum Resources (Downstream) urged PENGASSAN to retract its order to cut off gas and crude oil supplies to the Dangote Refinery.
As the operator responsible for managing the electricity system, NISO oversees the allocation of power from generation companies to distribution firms and eligible consumers, ensuring the smooth functioning of the national grid.