Crisis Brews: Dangote Refinery Confronts Unions as Strike Looms, Government Steps In!
A significant industrial dispute is escalating in Nigeria, as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has declared a nationwide strike, effective September 28, to protest the alleged dismissal of its members at the Dangote Petroleum Refinery. This planned disruption of fuel supply and potential gas cut-offs has drawn widespread opposition and warnings from various stakeholders, including the federal government, industry experts, and civil society groups, citing severe economic and national security implications.
PENGASSAN accuses the Dangote Refinery of unfairly terminating the employment of hundreds of staff members for exercising their constitutional right to freedom of association and joining the union. The association further alleges that some dismissed staff have been replaced by expatriates. In response, the Dangote Refinery has vehemently denied carrying out a mass sack, clarifying that only a small number of staff were released as part of an internal reorganisation aimed at improving efficiency. The company maintains that the majority of its workforce remains Nigerian and dismissed claims of thousands of expatriates replacing locals, describing PENGASSAN’s actions as "bully tactics" and a threat to a "national asset" that must be protected.
The federal government has swiftly intervened, with the Minister of Labour and Employment, Maigari Dingyadi, appealing to PENGASSAN to reconsider its planned strike, warning of "far-reaching consequences for the economy and national security." An emergency meeting was convened in Abuja by the Labour Ministry, inviting both PENGASSAN leadership and Dangote Refinery management. Separately, the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, chaired by Finance Minister Wale Edun, met and reassured the public of a steady supply of refined petroleum products, confirming that all outstanding issues between PENGASSAN and Dangote Refinery are being addressed with urgency and in good faith. The House of Representatives Committee on Petroleum Resources (Downstream) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have also called for dialogue.
The potential disruption has ignited a national conversation and drawn fire from various quarters. Many Nigerians on social media platforms expressed mixed views; some criticized PENGASSAN for potentially harming the economy and acting out of self-interest, while others condemned Dangote for perceived poor welfare and anti-union practices, raising concerns about monopoly. The Petroleum Tanker Drivers (PTD) branch of NUPENG strongly accused PENGASSAN of overstepping its mandate and attempting to undermine the Dangote Refinery, calling PENGASSAN’s strike threat "empty, mischievous and irrelevant," and dismissing claims about expatriates as "false" and "blackmail." PENGASSAN, in turn, dismissed the PTD group as unknown to its constitution and backed by "unconscionable capitalists."
Adding to the chorus of concern, the Concerned Nigerian Consumers Forum urged the federal government and Department of State Services to investigate PENGASSAN for alleged sabotage, warning that such actions could plunge the country into fuel scarcity, economic instability, and national embarrassment, benefiting only "fuel importers and rent seekers." Critically, the Association of Power Generating Companies (APGC) and the Nigerian Independent System Operator (NISO) issued dire warnings of an imminent nationwide blackout and national grid collapse if gas supply to thermal power stations, which account for over 70 percent of Nigeria's electricity, is cut off due to the strike.
Legal and energy experts have also weighed in, highlighting the profound economic and social consequences. Professor Emeritus of Petroleum Economics, Wumi Iledare, emphasized that a stoppage in the petroleum industry destabilizes systems, shrinks government revenue, triggers product shortages, and undermines investor confidence. Professor Dayo Ayoade mni, an Energy Law expert, cautioned that PENGASSAN's actions could deter foreign investment and suggested the union might be acting as a "cabal." Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises, described the strike as a "major threat to energy security" and questioned its legality, noting that established dispute resolution processes might not have been exhausted. Lawyers like Abeny Mohammed, SAN, and Mike Ozekhome, SAN, advised alternative legal avenues like industrial courts and emphasized finding a middle ground between constitutional rights and employment obligations. Professor Sam Amadi noted that downing tools is usually the last option before going to court, and unions must act within the law.
Despite the widespread warnings, the Trade Union Congress of Nigeria (TUC) has thrown its full weight behind PENGASSAN, condemning Dangote Refinery's "anti-worker actions" as a direct assault on Section 40 of the Nigerian Constitution and International Labour Organisation conventions. The TUC has demanded the immediate and unconditional reinstatement of all affected workers, a public apology, and an independent investigation into the refinery's labour practices. It has also placed all its affiliates nationwide on standby for a general strike if its demands are not met, vowing that "no corporation, regardless of size or wealth, will be allowed to trample on the dignity and rights of Nigerian workers." The National Association of Nigerian Students (NANS) has also appealed to stakeholders to end hostilities against the Dangote Refinery, questioning the frequent face-offs with various associations since the refinery commenced operations.
As the dispute intensifies, the Nigerian government remains committed to ensuring energy security and stability. The ongoing tension underscores the critical need for a swift and lawful resolution to prevent widespread economic hardship and protect Nigeria's vital energy infrastructure.
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