No agreement signed with Dangote Refinery, Claims PENGASSAN
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has dismissed reports suggesting it signed a formal agreement with Dangote Petroleum Refinery to resolve the recent labour crisis. The union clarified that while discussions were held with government mediators and the refinery’s management, no binding deal has been reached. Speaking in Abuja, PENGASSAN President Festus Osifo explained that the suspension of the strike action was not due to a concluded agreement but a gesture of goodwill to give room for continued dialogue. He noted that although a communique was released after the meeting, the union did not append its signature, insisting that many of its core grievances remain unresolved. The dispute stems from the refinery’s decision to terminate the contracts of more than 800 Nigerian workers, a move PENGASSAN condemned as unjust and discriminatory. The union accused the management of deliberately replacing local employees with expatriates, thereby undermining Nigerian professionals in the oil and gas sector. In response, PENGASSAN ordered the immediate suspension of crude oil and gas supplies to the multi-billion-dollar refinery, a directive that triggered disruptions across the energy supply chain. The industrial action, though short-lived, caused noticeable interruptions to refinery operations and raised fears of wider supply shortages in the downstream sector. It was this disruption that prompted urgent intervention by the Federal Government, with the Ministry of Labour and Employment stepping in to facilitate dialogue between both parties. While Dangote Refinery and government officials announced what they described as a truce, PENGASSAN insists the matter is far from settled. The union is demanding the reinstatement of affected workers, job security guarantees for Nigerians, and firm assurances that outsourcing or the replacement of local staff with foreign nationals will not be tolerated. Osifo warned that unless these issues are conclusively addressed and a signed, enforceable agreement is produced, the union would not hesitate to resume its industrial action. “We have only suspended the strike out of respect for government intervention. If the refinery fails to honour its commitments, we will return to the trenches without hesitation,” he said. On its part, Dangote Refinery has maintained that it acted within its legal rights to restructure its workforce and has described PENGASSAN’s strike order as unlawful. The company has also been contending with challenges in fuel distribution and foreign exchange volatility, further complicating its operations. For now, the fragile calm remains, but industry analysts warn that unless a concrete agreement is reached soon, the dispute could flare up again, posing risks to Nigeria’s energy supply stability and investor confidence in the country’s refining sector.
