PENGASSAN Declares Service Withdrawal Over Dangote Refinery Sack 800 Operations to Halt Nationwide

Withdrawal Over Dangote Refinery Sack 800 Operations to Halt Nationwide

Meta Description:
PENGASSAN orders crude and gas supply to Dangote Refinery to stop from Sunday after alleged mass sack of 800 workers. Nationwide service withdrawal begins Monday.

Introduction

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has announced a decisive escalation in its dispute with Dangote Refinery. In protest of the alleged dismissal of 800 Nigerian workers, the union has ordered a service withdrawal, directing that crude and gas supply to the refinery be halted starting Sunday, with full nationwide operations to stop by Monday.

This move marks a significant labor confrontation, striking at the heart of Nigeria’s energy infrastructure and threatening fuel supply stability across the country.

What the Withdrawal Order Entails

• As of 6:00 a.m. Sunday, PENGASSAN mandates that all crude supply, gas deliveries, and vessel loading operations to the Dangote Refinery must cease.
• From 12:01 a.m. Monday, a full nationwide service withdrawal will commence, covering all associated operations under the union’s purview.
• The action aims to pressure Dangote to reverse the dismissals of allegedly unionized Nigerian workers.

The Cause of the Dispute

PENGASSAN accuses Dangote management of mass layoffs targeting over 800 staff many of whom joined the union. The union claims foreign nationals, especially Indian employees, were retained or recruited in place of the dismissed Nigerians.

Dangote, for its part, has denied the scale of the dismissals, calling them part of a restructuring exercise and attributing some firings to alleged acts of sabotage rather than union membership.

Potential Impacts & Risks

• Energy Disruption: With Dangote Refinery a key player in Nigeria’s refining capacity, halting crude and gas supply threatens to cause severe fuel shortages and price spikes.
• Supply Chain Strain: The stoppage may ripple across fuel logistics, affecting delivery to petrol stations nationwide.
• Economic & Investor Confidence: Prolonged conflict and instability in the energy sector could erode investor trust and destabilize markets.
• Legal & Government Response: The union’s decision raises questions about whether essential services laws and labor regulations will override such shutdowns.

  

Global / External Confirmation

• Reuters reports that PENGASSAN has already ordered a halt to crude and gas supplies to Dangote after the refinery allegedly sacked more than 800 unionized workers.
• The wider strike caused Nigeria’s daily oil output to drop significantly, with estimates showing a 16% decline during the disruption.
• After negotiations, PENGASSAN later agreed to call off the strike.

What Must Happen Next

1. Government Mediation: The federal government must step in to broker peace, protect jobs, and ensure energy security.
2. Independent Investigation: A transparent inquiry into the dismissals, union claims, and management response is critical.
3. Restoration & Dialogue: If union claims are substantiated, reinstatement or compensation should be negotiated.
4. Labor Protections Review: Review of labor laws concerning industrial actions in essential services to prevent escalation.

Conclusion

PENGASSAN’s declaration of service withdrawal over Dangote’s alleged mass sackings escalates a serious labor and energy crisis. While the union sees it as a defense of Nigerian labor rights, the move threatens nationwide fuel availability and risks broader economic fallout. With Nigeria’s energy future on the line, swift and fair resolution is critical.