The industrial dispute brewing between organized labour and the management of the $20 billion Dangote Refinery has escalated, as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has openly declared solidarity with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in its push for unionisation of employees.
The development has heightened concerns over a possible disruption of operations at Africa’s largest oil refinery, a facility projected to play a critical role in stabilising Nigeria’s downstream petroleum sector.
NUPENG had on Sunday vowed to halt fuel loading from the refinery, alleging that the company was preventing newly recruited tanker drivers from joining the union.
With over 4,000 trucks expected to transport petroleum products nationwide, any disruption could have immediate consequences on fuel supply.
In a statement signed by its General Secretary, Lumumba Okugbawa, PENGASSAN described Dangote’s alleged resistance to unionisation as “unacceptable” and warned that it would have no choice but to join in a total shutdown if the matter was not resolved urgently.
“On behalf of PENGASSAN, we express unwavering solidarity with our ally and sister union, NUPENG, in their ongoing efforts to secure the rights of tanker drivers currently being hired at the Dangote Refinery,” the statement read.
It further cautioned: “Should the ongoing situation persist without resolution, PENGASSAN will be left with no option but to join in shutting down refinery operations as a last resort to protect our members’ rights and interests.”
PENGASSAN alleged that the Dangote Group has, since inception, resisted efforts by refinery workers to unionise, despite repeated interventions from labour leaders and relevant government agencies.
“All diplomatic efforts to persuade the company’s management have so far not yielded results,” Okugbawa said.
“The continued denial of workers’ rights will no longer be tolerated.”
The union maintained that the right of workers to organise and collectively bargain is a fundamental human right protected under Nigerian labour laws and the International Labour Organisation (ILO) conventions.
Both NUPENG and PENGASSAN are demanding:
Full unionisation of all workers at the refinery and its affiliated companies.
Recognition of tanker drivers and refinery employees under the appropriate labour unions.
Commitment to international best practices on workplace safety, welfare, and collective bargaining.
“The refinery cannot operate in isolation of global labour standards.
The rights of workers to organise and negotiate are essential for fair labour practices, safety, and dignity at work,” PENGASSAN stressed.
Labour experts warn that any shutdown of the refinery could disrupt Nigeria’s already fragile energy supply chain.
With the refinery expected to reduce the country’s heavy dependence on imported refined products, interruptions in production or distribution could worsen fuel scarcity, increase pump prices, and place additional pressure on the naira.
Economic analyst, Dr. Bamidele Adeyemi, told The Nation that prolonged industrial action could also affect Nigeria’s image among international investors.
“If unions follow through with the shutdown, it could raise questions about the refinery’s stability and the ease of doing business in Nigeria,” he said.
Sensing the potential national fallout, the Minister of Labour, Employment and Productivity, Muhammadu Dingyadi, has summoned an emergency meeting in Abuja involving all stakeholders — PENGASSAN, NUPENG, the Dangote Refinery management, and relevant government agencies.
According to ministry sources, the meeting aims to prevent escalation, secure a compromise, and ensure refinery operations are not disrupted.
The standoff is not just about the Dangote Refinery but also about the broader future of labour relations in Nigeria’s industrial sector.
With Dangote Group operating in multiple sectors — cement, sugar, fertiliser, and now oil refining — labour unions believe the company’s approach to worker representation could set a precedent for other major corporations.
Labour lawyer, Barrister Ifeoma Chukwuma, explained that “if the refinery successfully resists unionisation, other large corporations may follow suit, weakening organised labour’s influence and denying workers protection.”
Despite the tough rhetoric, PENGASSAN appealed for urgent dialogue.
“Failure to recognise workers’ rights will have consequences beyond Dangote Refinery, impacting the entire oil and gas industry,” Okugbawa warned.
The association urged government mediators to ensure that workers’ voices are not silenced, and that a fair balance is struck between corporate interests and labour rights.
As tensions mount, all eyes are on Abuja where talks are expected to determine the refinery’s immediate future.
For now, Nigeria stands at the edge of a potential labour showdown that could affect not only fuel availability but also investor confidence in Africa’s largest economy.
Whether compromise or confrontation lies ahead remains uncertain, but one thing is clear: the outcome will shape the future of labour rights in Nigeria’s strategic oil and gas industry.
