In a dramatic turn of events, the Federal Government has announced the resolution of the bitter confrontation between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Petroleum Refinery.
The conflict erupted after Dangote Refinery reportedly terminated over 800 staff members, many of whom were PENGASSAN members. The union alleged that the dismissals were because the workers were unionizing, and also claimed that foreign nationals were being brought in to replace local staff under a guise of “reorganisation.” Dangote’s management, however, defended its actions as part of a structural realignment and accused some workers of sabotage.
Matters escalated when PENGASSAN ordered a halt to gas and crude oil supplies to the Dangote Refinery and directed members to withdraw their services. The union also initiated a nationwide strike that saw key oil sector organizations—NNPC, NUPRC, NMDPRA—cease operations. Given Nigeria’s heavy reliance on petroleum for revenue and supply, the standoff posed a serious threat to fuel availability and investor confidence.
Recognizing the gravity of the dispute, the federal government stepped in to mediate. A two-day conciliation meeting was convened in Abuja under the auspices of the Ministry of Labour and Employment, led by Dr. Mohammed Maigari Dingyadi. Also present were high-level officials from the Ministry of Finance, Budget & Economic Planning, the security agencies, NNPCL, NUPRC, and NMDPRA, along with leaders of PENGASSAN.
At the meeting, the government reaffirmed that unionisation is a fundamental right under Nigerian law, and urged both parties to act in good faith. After examining the circumstances of the disengagements, the parties agreed on a framework for resolution. Dangote Group committed to redeploying the disengaged workers to other entities within its corporate group without any reduction in pay. The company also pledged that no worker would be victimised or penalised for participating in union activities. In turn, PENGASSAN agreed to call off its nationwide strike and suspend further industrial action. These commitments were captured in a communique signed by all parties.
While the announcement marks a temporary end to hostilities, several deeper issues remain unresolved. The dispute has exposed fault lines in labour relations within Nigeria’s booming private energy sector. Questions remain about whether Dangote will faithfully honor the redeployment promise, and whether PENGASSAN can effectively guard against covert victimisation of its members. There are also concerns about how future reorganisations at the refinery will be handled and what precedent this resolution sets for labour relations across other major energy firms.
With the strike suspended, Nigeria has avoided what could have been a crippling fuel shortage, but the episode has highlighted the fragility of the nation’s energy supply chain. The government’s successful mediation shows that industrial disputes can be resolved through dialogue, yet the real test will be in ensuring that both parties uphold their commitments.
The resolution signals a path toward industrial peace, but true reconciliation will depend on the goodwill and actions of both parties in the days ahead. For a sector as critical as oil and gas, labour disputes must be managed with caution, as their ripple effects can undermine not only individual firms but also national stability and investor confidence.
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