The Federal Government has appealed to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to suspend its planned nationwide strike over a labour dispute with Dangote Refinery, urging both parties to allow room for dialogue and prevent disruptions to Nigeria’s petroleum sector.
The Minister of Labour and Employment, Muhammad Dingyadi, made the appeal in a statement on Sunday in Abuja, noting that the ministry has initiated reconciliation efforts to address the crisis. He said invitations have been sent to PENGASSAN leadership and Dangote Refinery management for a conciliation meeting scheduled for Monday in his office.
Dingyadi stressed the vital role the petroleum sector plays in Nigeria’s economy and warned that an industrial action would result in significant revenue losses and widespread hardship, potentially destabilising the economy and threatening national security. He urged the union to withdraw its strike declaration to enable the Federal Government to mediate in a peaceful atmosphere.
The appeal follows PENGASSAN’s directive for a nationwide strike in response to the dismissal of Nigerian workers at the Dangote Refinery. The union’s General Secretary said the decision, reached during an emergency National Executive Council (NEC) meeting, was in protest against what it described as violations of labour laws, the Nigerian Constitution, and international conventions.
PENGASSAN instructed members in field locations to withdraw their services from 06:00 hrs on Sunday, September 28, and those in offices, companies, institutions, and agencies to do the same from 00:01 hrs on Monday, September 29.
In reaction, Dangote Group accused PENGASSAN of attempting to sabotage the refinery and warned that the strike could disrupt fuel supply for 230 million Nigerians. The company dismissed claims that it had terminated over 800 Nigerian staff and replaced them with 2,000 Indian workers, clarifying that more than 3,000 Nigerians remain employed at the refinery.
Dangote also cited a previous incident involving PENGASSAN’s opposition to a $750 million Federal Government plan to sell the Port Harcourt and Kaduna refineries to a Dangote-led consortium in 2007. The company argued that the union’s resistance to such reforms, including legal actions involving the Nigerian National Petroleum Corporation (NNPC), shows a pattern of opposing measures aimed at strengthening Nigeria’s energy sector and economic stability.
The dispute is part of ongoing tensions between oil sector unions and the refinery. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) had earlier criticised Dangote Refinery’s refusal to recognise union rights for tanker drivers and other employees. A resolution on workers’ rights was signed in the presence of three federal ministers and a senior Department of State Services (DSS) official, but the conflict remains unresolved.
For MSMEs, a prolonged strike in the petroleum sector could trigger fuel supply disruptions and price increases, compounding operational costs and logistics challenges. With small businesses already contending with rising energy expenses, the outcome of the government’s intervention will be critical to sustaining economic activity and protecting livelihoods across the country.
