Natalie Nyathi
The Dangote Petroleum Refinery, a crucial part of Nigeria’s energy sector, is experiencing major disruptions following a directive from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to stop gas and crude oil supplies to the facility. This action is a significant escalation in the ongoing labor dispute between the union and the refinery’s management.
PENGASSAN issued the order, instructing its members across various oil companies to immediately halt all deliveries of crude oil and gas to the $20 billion refinery. The union’s decision comes after the alleged wrongful dismissal of many Nigerian workers who had recently joined PENGASSAN.
In a letter, PENGASSAN accused Dangote management of spreading misinformation instead of addressing the union’s concerns about the terminated employees. The union claims the refinery is violating workers’ rights to join a union by dismissing them for doing so.
The directive specifically tells branch leaders in key oil companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company, to cut off all supplies to the refinery. PENGASSAN has also asked the Nigerian Gas Infrastructure Company to ensure this cut-off is enforced without delay.
Dangote Refinery has denied the union’s claims, saying the dismissals were part of a reorganization aimed at improving safety and addressing security issues. The company insists that only a small number of workers were affected and that over 3,000 Nigerians still work at the refinery. Dangote also stated that workers are free to choose whether or not to join a union.
The refinery has described PENGASSAN’s actions as harmful, arguing that the union has no legal right to interfere with supply contracts. Dangote warned that the supply cuts could severely impact operations at the refinery and threaten the supply of essential fuel products in Nigeria.
This labor dispute adds to the challenges facing the Dangote Refinery, which recently announced it would stop petrol sales in naira due to shortages and foreign exchange issues. This decision raises concerns about possible increases in fuel prices. The refinery, which opened in 2023 and can process 650,000 barrels of crude oil daily, aims to reduce Nigeria’s reliance on fuel imports and stabilize domestic supply.
PENGASSAN has called an emergency meeting to discuss the situation and decide on further actions. The union has also threatened to picket the refinery if the dismissed workers are not reinstated. The situation remains tense, with the potential for significant disruptions to Nigeria’s fuel supply.