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Could Pengassan’s Dispute with Dangote Refinery Trigger Fuel Scarcity in Nigeria?

Could Pengassan’s Dispute with Dangote Refinery Trigger Fuel Scarcity in Nigeria?

As the Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) begins a nationwide strike on Monday, fears have grown that the action could lead to another round of fuel scarcity.

Pengassan says the strike was called because Dangote Refinery allegedly dismissed more than 800 workers who chose to join the union and replaced them with foreign workers. “No person or company, no matter how powerful, is above the law,” the union said in a statement on Saturday.

On Sunday, the Ministry of Labour and Employment appealed to Pengassan to suspend the strike, warning that it could cause hardship for the public and hurt the economy. “This sector is central to Nigeria’s economy.

A shutdown will mean revenue losses, more hardship for citizens, and risks to economic stability and national security,” the ministry said.

Pengassan President, Festus Osifo, said the union’s members are not directly involved in day-to-day distribution of petroleum products nationwide, so there should be no immediate impact on fuel supply. 

He noted that Pengassan mainly operates in the upstream segment of the oil and gas industry and that, as of now, depots and the Dangote Refinery have over 30 days of petrol stock. However, he cautioned that if the strike extends beyond one to two weeks, product availability could be affected.

What Pengassan alleges

Osifo said more than 1,000 Dangote Refinery employees indicated interest in joining Pengassan and submitted membership forms. According to him, the union notified the refinery on Monday, September 22, 2025, asking that union dues be deducted in line with labour laws. He claims the company then contacted the listed workers to confirm their interest and, afterwards, issued mass dismissal letters beginning Thursday, September 25. 

He argued that such actions breach Nigeria’s labour laws and compared practices at international oil companies operating in Nigeria, where Pengassan and NUPENG are active without similar disputes.

The refinery had a separate clash with the National Union of Petroleum and Natural Gas Workers (NUPENG) in early September over unionisation. That standoff ended after government mediation in Abuja, where the refinery agreed to allow workers who wished to join NUPENG to do so, while the union could not compel others.

Government steps in

The Ministry of Labour and Employment has invited Pengassan’s leadership and Dangote Refinery representatives to a meeting in Abuja. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is expected to chair the session, with Labour Minister Muhammadi Dingyadi also in attendance. In the meantime, the ministry urged Pengassan to call off the strike in the national interest.

Reports on Monday morning indicated that Pengassan members had locked entrance gates at several government oil institutions, including the Nigerian National Petroleum Company (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Dangote Refinery’s response

Dangote Refinery denied dismissing workers because of union membership. It said the layoffs were part of a company “reorganisation” intended to address “intermittent cases of sabotage” that raised safety concerns and reduced operational efficiency.

After Pengassan directed members to shut valves supplying crude oil and gas to the refinery, the company described the order as “lawless” and “economic sabotage,” arguing that the union has no legal power to issue such directives and warning that the move could discourage foreign investment in Nigeria.

Source: BusinessElitesAfrica | Read the Full Story…

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