Wednesday, October 1, 2025

Nigeria avoids energy disruption as Dangote resolves dispute with a major oil union

The Nigerian labor ministry, which was an instrumental figure in the mediation between both parties, recently announced that the oil union has decided to call off its protest against the refinery.

PENGASSAN’s grievance was brought on by allegations that the Dangote Refinery fired hundreds of workers tied to the union.

This ultimately led to a strike, which threatened the security of energy distribution in Africa’s most populous market.

However, the Nigerian labor ministry, via a statement issued on Wednesday, disclosed that PENGASSAN has decided to call off its strike.

“The Honourable Minister of Labour informed the meeting that unionisation is a right of workers in accordance with the laws of Nigeria, and this right should be respected,” the statement revealed.

“After examining the procedure used in the disengagement of workers, the meeting agreed that the management of Dangote Group shall immediately begin the process of redeploying the disengaged staff to other companies within the Dangote Group, with no loss of pay.

No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN.

PENGASSAN agreed to start the process of calling off the strike. Both parties agreed to this understanding in good faith,” the statement added, as seen on the Punch.

The meeting between both parties, which has yielded results, remained in a stalemate on the first day of negotiations.

Mohammed Dingyadi, the Minister of Labor and Employment, and Nkiruka Onyejeocha, the Minister of State for Labor and Employment, participated in a nine-hour-long dialogue that lasted until early Tuesday morning.

However, the second phase of the meeting, which included the National Security Adviser, Mallam Nuhu Ribadu; Minister of Labour and Employment, Dr. Dingyadi; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Senator Atiku Bagudu; Minister of State for Labour and Employment, Barr. Nkeiruka Onyejeocha, Director-General of the DSS, Adeola Ajayi, and the Director-General of the NIA, Ambassador Mohammed Mohammed, have led to an agreement.


Origins of Dangote’s dispute with PENGASSAN

Following the dismissal of hundreds of employees, the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) became embroiled in a major dispute.

The union alleged that Dangote violated labor rights and discriminated against local employees by firing over 800 Nigerians who joined PENGASSAN, replacing them with foreign workers.

Nigeria's downstream oil industry was severely disrupted when the union retaliated by asking that the delivery of gas and crude oil to the $20 billion refinery be suspended.

They then launched a nationwide strike, which has garnered support from other downstream union groups.

By Chinedu Okafor, Business Insider Africa

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