A labour dispute erupted when the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) claimed Dangote Petroleum Refinery dismissed over 800 workers. The union alleged the refinery fired members for unionising and replaced them with foreign nationals. Dangote management countered by saying it restructured operations for safety and efficiency, not for punishing union members. Tension escalated to gas-supply shutdowns and a threatened nationwide strike that risked disrupting fuel supply.
Federal Government Steps In
The Federal Government intervened to prevent a wider crisis in the oil sector and energy security. The Minister of Labour and Employment, Dr Mohammed Maigari Dingyadi, facilitated meetings among Dangote management, PENGASSAN, and high-level government officials. Discussions took place under the watch of several key administrators, including the National Security Adviser, and ministers responsible for finance, economy, and budget.
During negotiations, FG reviewed how workers were disengaged. Also, FG emphasised that union membership remains a protected right under Nigerian law. After meticulous review, the parties reached consensus that the workers would be redeployed within Dangote Group without loss of pay or benefits.
Key Terms of the Resolution
The final agreement includes several critical points. First, Dangote Group must begin redeploying the affected staff to other subsidiaries in its group immediately. Second, none of these workers will lose their salaries, benefits, or suffer victimisation for participating in union activities or raising concerns. Third, PENGASSAN agreed to begin calling off the strike in good faith following FG’s guarantee.
Moreover, FG declared protection of union rights crucial and demanded that future workforce changes respect legal processes and workers’ dignity.
Impacts and Significance
This resolution averts further escalation that could have disrupted crude and gas supplies at the refinery and threatened fuel availability across Nigeria. Also, it safeguards worker welfare and signals to investors that labour disputes in strategic sectors can receive government mediation.
For Dangote Group, the agreement prevents reputational damage and restores confidence among its workforce. For PENGASSAN, the outcome affirms that organised labour has leverage when raising credible concerns.
Challenges and What Lies Ahead
Though the deal looks promising, implementing redeployment without hitches remains challenging. Dangote must identify subsidiaries with roles suitable for the disengaged workers. Also, the company must ensure pay and benefits match previous conditions and that no one suffers indirectly from redeployment. Monitoring will matter, so victimisation claims do not resurface.
PENGASSAN and FG will face pressure to ensure unity among the workers, maintain transparency in executing the agreement, and measure whether the resolution genuinely resolves grievances.
Conclusion
The FG agreement directing Dangote to redeploy disengaged workers without loss of pay demonstrates how high-stakes disputes in Nigeria’s oil sector can de-escalate through negotiation. It reaffirms that union rights must be respected, workers cannot be penalised for union activities, and the government has a role in ensuring industrial peace. If Dangote and PENGASSAN follow through, this resolution might become a model for resolving labour disputes elsewhere in the energy sector.
Bonus Read: NLC Mobilises Strikes Against Dangote in PENGASSAN Dispute
