Labour and Employment Minister Mohammed Maigari Dingyadi
The Federal Government has settled the dispute between the management of the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), thus ending a strike that threatened fuel supplies across the country.
Announced on Wednesday in Abuja, the agreement followed two days of intense negotiations led by Labour and Employment Minister Mohammed Maigari Dingyadi and security chiefs.
In a communique which reaffirmed workers’ right to unionise under Nigerian law and international labour conventions, the minister said, “This matter touches the heart of our economy and national security.”
Under the deal, the refinery pledged to reassign over 800 workers affected by a recent restructuring to other Dangote Group entities without loss of pay, while PENGASSAN agreed to suspend its strike and restore operations at the 650,000-barrels-per-day refinery.
The statement also barred victimisation of employees involved in the dispute and hailed the outcome as a “good faith” settlement.
The strike, which began on Monday, was sparked by allegations that refinery management dismissed union members in retaliation for their decision to join PENGASSAN.
The union claimed that Nigerian workers were being replaced with expatriates, mostly from India, a charge the refinery denied. Management insisted that the job cuts were part of an internal reorganisation to improve efficiency and safety.
The Dangote Refinery, a $19 billion project located in Lagos State’s Lekki Free Zone, began operations earlier this year and is seen as critical to ending Nigeria’s dependence on imported fuel.
A prolonged shutdown, analysts warned, could have worsened inflation and deepened petrol shortages at a time when Nigerians are already grappling with subsidy reforms and rising costs of living.
The government’s intervention drew in senior ministers, officials from the Nigerian National Petroleum Company Limited (NNPCL), and intelligence chiefs. By Tuesday evening, a compromise was struck, averting what PENGASSAN had warned would be a nationwide shutdown of fuel supply lines.
Both sides have expressed cautious optimism. PENGASSAN president Festus Osifo said the union would “monitor compliance closely,” while a Dangote spokesperson reiterated the company’s commitment to a “Nigerian-first” employment policy.
