Gas Crisis Hits Grid: Nigeria’s Power Supply Crashes Below 4,000MW as Dangote Refinery-PENGASSAN Dispute Deepens

Nigeria is facing a severe power crisis after electricity supply on the national grid plummeted below the critical 4,000 Megawatt (MW) threshold. The sharp decline has been directly linked to the escalating industrial action between the $20 billion Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The dispute, sparked by the reported mass sack of 800 workers by Dangote Refinery, entered its second day on Tuesday, causing massive disruption across the gas supply chain.

According to the Nigerian Independent System Operator (NISO), the strike action triggered widespread gas shortages that are crucial for powering gas-fired thermal plants across the country.

Load allocation to electricity distribution companies (Discos) dropped sharply to 3,656MW on Tuesday morning, down from 4,320MW recorded just the previous day. At its lowest point, generation reportedly fell to about 3,200MW, pushing the grid dangerously close to collapse.

The crisis forced most gas-fired power plants offline, leaving hydro stations as the main source of electricity. Delta contributed 472MW while Egbin supplied 447MW, according to NISO figures.

To keep the system stable, NISO deployed contingency measures, including “Hydropower Optimization” and “Selective Load Shedding” (power rationing), to prevent a total nationwide blackout.

The standoff between Dangote Refinery and PENGASSAN has thrown Nigeria’s fragile energy sector into deeper uncertainty, exposing the risks of relying heavily on gas supply for electricity generation.

Stakeholders warn that without swift government intervention to resolve the labor dispute; Nigeria could face prolonged blackouts and worsening energy insecurity.