Court Stops PENGASSAN, Others From Cutting Gas Supply To Dangote Refinery

The National Industrial Court in Abuja has issued a temporary restraining order stopping the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and other industry regulators from disrupting crude oil and gas supply to the Dangote Petroleum Refinery and Petrochemicals FZE.

Justice Emmanuel Subilim delivered the ruling on Monday following an ex parte application brought by the refinery, which argued that the threat of industrial action posed a risk to national energy stability and public interest.

The dispute stems from a wave of staff disengagement at the refinery last week, which labour leaders allege was targeted at workers affiliated with the union. PENGASSAN had responded with a threat to cut off crude and gas supply, a move that the court said could cripple operations at the refinery and disrupt access to petroleum products across the country.

The defendants in the case include PENGASSAN, the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Justice Subilim ruled that the order, which will remain in place for seven days, was necessary to maintain industrial peace and prevent damage to essential services until a substantive hearing is held.

Dispute Over Staff Reorganisation

The refinery’s management had carried out a reorganisation exercise in September, which led to the disengagement of some employees. The company argued that the move followed incidents of sabotage that raised serious safety concerns at its plant, making restructuring unavoidable.

However, PENGASSAN accused the refinery of unfair labour practices, claiming that more than 800 Nigerian workers were laid off primarily because of their union membership. The union issued a letter to the Ministry of Petroleum Resources warning of imminent action that could halt production and distribution at the refinery if the dismissed staff were not recalled.

Dangote Refinery refuted the claim, maintaining that only a small number of workers were affected out of its more than 3,000-strong Nigerian workforce. The company insisted the decision was not linked to unionisation but to operational and safety requirements.

The disagreement has since escalated into one of the most high-profile labour disputes in Nigeria’s energy sector, raising fears of potential disruption to fuel supply at a time when the country continues to grapple with high costs and limited access to refined products.

Broader Implications For Energy Supply

Analysts note that the standoff underscores the growing tension between organised labour and privately owned refineries in Nigeria’s evolving petroleum sector. With the Dangote Refinery seen as central to Nigeria’s efforts to reduce fuel imports and stabilise domestic supply, any disruption to its operations could have significant economic consequences.

The court’s decision effectively shields the refinery from immediate disruption while giving all parties time to prepare for the substantive hearing scheduled for October 13. The ruling also highlights the role of the judiciary in balancing the rights of workers to organise with the imperative of protecting critical national infrastructure.

For PENGASSAN and other unions, the case serves as a test of their ability to assert influence within the private energy sector, which is expected to play an increasingly important role in Nigeria’s fuel market. For the refinery, it is a critical moment to demonstrate that it can navigate labour disputes without undermining its role as a stabilising force in the country’s petroleum industry.

The restraining order, though temporary, has created breathing space for negotiations that could determine how future disputes between organised labour and private refiners are handled. As the October 13 hearing approaches, the spotlight remains firmly on the refinery, PENGASSAN, and regulators tasked with overseeing the industry’s stability.