The ongoing confrontation between Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has sparked widespread debate in Nigeria’s oil and gas sector. The industrial action, initiated by PENGASSAN, is being seen as a pivotal moment in the country’s energy landscape, raising questions about workers’ rights, corporate accountability, and national economic stability.
PENGASSAN Calls for Nationwide Strike
On Saturday, PENGASSAN instructed its members to embark on a nationwide strike over the reported dismissal of over 800 workers by Dangote Refinery. The union cited the layoffs as the main reason for the industrial action, urging the refinery management to recall all terminated Nigerian workers.
However, Dangote Refinery has dismissed the union’s claims as a political and economic maneuver, arguing that the strike is not intended to protect Nigerian workers but rather to weaponize hardship against the nation.
Dangote Refinery’s Response
In a statement released on Sunday, Dangote Refinery emphasized that the union’s actions would inflict severe hardships on Nigerians, affecting essential services including hospitals, schools, emergency services, and transportation systems. The refinery described the strike as “another act of economic sabotage” and called on the federal government and security agencies to intervene.
The company stated:
“The directive to withdraw services and cut off essential fuel supplies is not about protecting Nigerian workers, but it is about a cabal of oligarchs weaponizing hardship against over 230 million Nigerians.”
Dangote Refinery also accused PENGASSAN of a history of sabotaging Nigeria’s oil and gas sector. The statement recalled the union’s opposition to previous refinery privatizations and amendments to the Petroleum Industry Act (PIA), which would have unlocked federal liquidity and encouraged private-sector investments.
Historical Context: Union vs. Industry
According to Dangote Refinery, PENGASSAN and its ally, NUPENG, have a long history of undermining reforms in the oil and gas sector. In 2007, the unions were blamed for sabotaging the sale of the Port Harcourt and Kaduna refineries to the Blue Star Consortium, led by Dangote Group, despite the sale being a $750 million investment aimed at revitalizing the industry.
The refinery also criticized the union for celebrating the rehabilitation of the Port Harcourt Refinery, calling it a “ruse” that misled Nigerians while failing to deliver tangible results.
Allegations of Mismanagement
Dangote Refinery accused PENGASSAN of mismanaging billions of naira from annual check-off dues, funding lavish lifestyles of its leaders without accountability. In contrast, the refinery highlighted its contributions to the Nigerian economy, including:
- Road construction projects
- Worker training programs
- Creation of thousands of jobs
- Competitive compensation structures exceeding industry standards
The refinery reiterated that the reported layoffs were part of a reorganization exercise affecting only a small number of employees.
Call for Government Intervention
The ongoing dispute between Dangote Refinery and PENGASSAN has raised concerns about national energy security. The refinery urged the federal government to act decisively to prevent economic sabotage for the continuous supply of essential fuels to Nigerians.
The Stakes for Nigeria
The strike highlights the delicate balance between labor rights and economic stability in Nigeria’s oil and gas sector. While PENGASSAN frames its actions as worker protection, Dangote Refinery presents a contrasting narrative, emphasizing national interest and the welfare of millions of Nigerians.
As the situation develops, government intervention and dialogue between the refinery and the union are crucial to mitigating disruptions and safeguarding Nigeria’s energy sector.