Fuel Crisis Looms: Dangote Refinery Accused of Economic Sabotage as PENGASSAN Enforces Shutdown!

Published 2 months ago3 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Fuel Crisis Looms: Dangote Refinery Accused of Economic Sabotage as PENGASSAN Enforces Shutdown!

A significant industrial dispute has erupted in Nigeria, pitting the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against the Dangote Refinery, following the refinery's dismissal of over 800 workers who were members of the union. PENGASSAN initiated a nationwide strike on Sunday, directing its members to halt crude oil and gas supplies to the Dangote Refinery and other installations, leading to the shutdown of the refinery plant and fertilizer plant's train two, with train one operating at 60% capacity. The union stated that the diesel plant was still operational, but the disruption has impacted crude and gas supply to the refinery.

Dangote Refinery has vehemently condemned PENGASSAN's actions, labeling them as "economic sabotage," a "brazen display of lawlessness and criminality," and a threat to Nigeria's energy supply chain. The refinery warned that the strike could cause widespread fuel scarcity and disrupt the availability of critical petroleum products such as petrol, aviation fuel, kerosene, diesel, and cooking gas. It accused PENGASSAN of lacking the legal authority to interfere with contracts between the refinery and its suppliers and of abandoning legal recourse for "mob action." The company asserted that it had undertaken a "reorganisation exercise" affecting "only a small number" of workers, contradicting PENGASSAN's claim of over 800 mass sackings. Dangote Refinery, identifying itself as a strategic national asset and a significant taxpayer, urged the Federal Government and security agencies to intervene, highlighting the potential harm to investor confidence and government revenues.

In response to the escalating crisis, various government bodies and unions have weighed in. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), through its Chief Executive Officer, Gbenga Komolafe, urged both Dangote Refinery and PENGASSAN to engage in dialogue to prevent disruptions to the country's energy supply and find an amicable solution. The Trade Union Congress of Nigeria (TUC) declared full solidarity with PENGASSAN, threatening to join a nationwide industrial action if Dangote management fails to reverse the sackings and issue a public apology, emphasizing that no company should trample on the rights of Nigerian workers, a direct assault on the Nigerian Constitution and International Labour Organisation (ILO) conventions.

The Federal Government has also taken steps to mediate the dispute. The Minister of Labour and Employment, Maigari Dingyadi, summoned the leadership of PENGASSAN and the management of Dangote Refinery to an emergency conciliation meeting in Abuja. The Minister appealed to PENGASSAN to reconsider its strike, warning of the severe adverse impacts on economic stability, national security, and potential hardship for Nigerians, including heavy revenue losses. Separately, a high-level meeting was held involving representatives of Dangote refinery, the sub-committee on crude and refined product sales in naira initiative, and key government officials including the Minister of Finance, Wale Edun, and the Chairman of FIRS, Zacch Adedeji, alongside ministers of budget and economic planning, and representatives from NNPC Limited, CBN, and Afreximbank. This meeting, chaired by the Minister of Finance, addressed the PENGASSAN concerns, reaffirming that there would be no disruption in the supply of refined petroleum products and that all outstanding issues are being addressed urgently and in good faith. The government reiterated its commitment to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market.

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