PENGASSAN vs. Dangote Refinery: Labour Dispute Escalates Into Supply Crisis

The Dangote Petroleum Refinery has issued a strong condemnation of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over its directive to halt crude and gas supply to the facility. In a statement on Saturday, the refinery described the move as a “brazen, albeit shocking, display of lawlessness and criminality,” insisting that the union has no legal authority to interfere with supply agreements entered into by the Dangote refinery and third-party vendors.

According to the Dangote Refinery management, the directive not only undermines Nigeria’s laws but also poses a grave risk to national stability. “Perhaps, PENGASSAN needs to be reminded that Nigeria is a country governed by laws. Our laws do not brook self-help and mob action that could introduce mayhem and chaos,” the statement read.

The Dangote refinery further noted the contradiction in PENGASSAN’s recent public stance. While the union had earlier vowed to pursue legal action, Dangote Refinery argued that it has now abandoned the lawful route and instead embraced disruptive tactics that could harm the country’s energy sector.

Dangote Refinery accused PENGASSAN of Economic Sabotage

Beyond the legal implications, Dangote Refinery warned that the union’s directive amounted to economic sabotage. It stressed that halting supply would disrupt the distribution of critical petroleum products, including aviation fuel, petrol, kerosene, diesel, and cooking gas, all of which are essential for daily life and economic activity.

The company described such a move as a direct threat to millions of Nigerians, noting that both the wealthy and ordinary citizens depend on the refinery’s products. “In plain language, PENGASSAN has directed its branches to disrupt and stop the supply of petroleum products from the Dangote Refinery to Nigerians,” it stated.

Furthermore, management emphasized that the refinery is one of the largest contributors to government revenue at both federal and state levels, warning that any disruption in operations would weaken national finances at a time of pressing economic challenges.

Dangote Call for Federal Intervention

The Dangote refinery has urged the Federal Government and security agencies to step in swiftly to prevent what it termed “reckless and irresponsible conduct” by PENGASSAN. It stressed that allowing the directive to stand would not only endanger Nigeria’s economic interests but also set a dangerous precedent of unions interfering unlawfully with private contracts.

“We are, by this write-up, drawing the attention of the Federal Government and its security and law enforcement agencies – as well as all other levels of governments in Nigeria – to this criminal, lawless, reckless, and irresponsible conduct of PENGASSAN,” the statement read.

Meanwhile, PENGASSAN, through its General Secretary, Lumumba Okugbawa, defended its directive. The union accused Dangote Refinery of unfairly disengaging unionised workers and engaging in “misinformation and propaganda” instead of addressing labour concerns. It instructed its branches, particularly the NGIC branch, to cut off gas and crude oil supplies to the refinery immediately and halt all loading operations for vessels serving the facility.