Crisis in Oil Sector: PENGASSAN cuts supply to Dangote over sack of workers

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The industrial dispute between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) deepened on Saturday after the union ordered seven of its branches to cut crude oil and gas supplies to the $20 billion facility.

In a letter dated September 26, signed by General Secretary Lumumba Okugbawa, PENGASSAN accused the refinery’s management of sacking members for exercising their constitutional right to unionize. “As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to being unionized,” the letter stated.

The union described the refinery’s action as “illegitimate”, alleging that management resorted to “misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.” It then directed its branches in TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, Renaissance, and the Nigerian Gas Infrastructure Company (NGIC) to shut all crude oil supply valves, cut gas flows, and halt vessel loading operations to the refinery. “Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the refinery should be shut. The loading operation for vessel headed there should be halted immediately,” the directive read

The union further instructed the NGIC Chairman to ensure strict compliance and report progress. “NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive. Kindly accept the assurances of our highest esteem. Thank you,” the statement added. PENGASSAN reaffirmed its solidarity with its slogan: “Injury to one! Injury to all!”

Dangote, however, rejected the allegations, insisting that only a small number of workers were affected in what it called a necessary restructuring exercise. In a statement on Friday, the refinery explained that the decision followed “recurring acts of sabotage in different units of the refinery, which posed serious risks to human lives and operations.” It stressed that over 3,000 Nigerians remained in employment, dismissing claims of mass layoffs.

The dispute escalates just days after Dangote Refinery announced it would suspend petrol sales in naira from September 28 due to the exhaustion of its crude-for-naira allocations

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