FG Moves to Halt PENGASSAN Strike as Dangote Refinery Dispute Deepens

The Federal Government has stepped in to prevent an industrial crisis following the decision of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to embark on a nationwide strike over alleged mass dismissals at Dangote Refinery.

Minister of Labour and Employment, Muhammad Dingyadi, announced that his ministry has initiated urgent measures to bring the feuding parties to the negotiation table. He confirmed that invitations have been sent to both PENGASSAN and the management of Dangote Refinery to attend an emergency conciliation meeting in Abuja on Monday. The move is aimed at averting a full-blown disruption in the country’s critical petroleum sector.

Dingyadi also appealed to the union to suspend its planned action, stressing that the strike, if carried out, could worsen the country’s economic situation and inflict hardship on millions of Nigerians. The government’s intervention comes as tensions in the oil and gas sector threaten to boil over, with the refinery and the labour union locked in a bitter dispute.

Escalating Labour Dispute

The latest crisis was triggered by what PENGASSAN described as an unlawful dismissal of Nigerian workers at the Dangote Refinery. In a circular issued after its emergency National Executive Council meeting on Saturday, the union accused the refinery of violating labour laws and international conventions by sacking workers who joined the association.

PENGASSAN alleged that more than 2,000 foreign workers had been brought in to replace the dismissed staff, describing the move as an affront to Nigeria’s labour force. As a result, the union directed its members in field locations to withdraw their services immediately, with a total shutdown across offices, companies, and agencies set to begin Monday.

The strike notice has raised concerns about possible disruptions to fuel distribution and refinery operations, which could have ripple effects on the economy. Industry observers have warned that any prolonged shutdown in the petroleum sector could lead to revenue losses running into billions and worsen the nation’s fragile economic outlook.

Dangote Refinery’s Defence and the Stakes Ahead

In its response, the management of Dangote Refinery maintained that the decision to disengage some staff was neither arbitrary nor targeted at any group. According to the company, the action was part of a broader reorganisation aimed at addressing safety concerns and preventing acts of sabotage that had disrupted operations in the past.

The refinery insisted that the exercise was necessary to protect both its personnel and facilities, citing repeated security breaches in certain units that posed risks to human life and operational stability. It added that the restructuring was intended to boost efficiency and ensure smooth production in Africa’s largest single-train refinery.

The standoff underscores growing tensions between organised labour and one of Nigeria’s most strategic industrial investments. Dangote Refinery, which is seen as a game changer for the country’s quest for energy independence, has faced criticism from labour groups over working conditions, labour rights, and its handling of workforce disputes.

With Monday’s meeting now expected to be a turning point, stakeholders are hopeful that the federal government’s mediation will lead to a resolution that preserves industrial harmony. A successful dialogue could prevent fuel supply disruptions, protect jobs, and maintain the momentum of Nigeria’s refining sector, which is critical to reducing reliance on imported petroleum products.

The outcome of the negotiations will also be closely watched by labour unions across the country, as it may set a precedent for handling disputes between large private-sector employers and organized labour in Nigeria’s energy industry.