The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has shut down operations at the Dangote Refinery in Ibeju-Lekki, Lagos, following the sacking of over 800 workers allegedly for union membership.
The union announced the shutdown on Sunday, describing it as part of a nationwide industrial action against what it called “anti-labour practices” at the refinery. According to PENGASSAN, the action has disrupted crude and gas supply to the facility.
In a statement issued by the union, it said that the refinery has been completely shut down, while operations at the fertiliser plant’s second train have also stopped. The first train of the fertiliser plant is reportedly running at only 60% capacity. However, the diesel plant is said to still be in operation.
The shutdown has not yet been officially confirmed by the Dangote Group. However, if true, the move could disrupt ongoing test production and supply chains at the $20 billion refinery, which has been projected to reduce Nigeria’s dependence on imported petroleum products.
The conflict began after Dangote Refinery reportedly terminated the employment of over 800 staff members, allegedly for being members of PENGASSAN. The union described the action as a violation of labour rights and accused the company of refusing to recognise or engage with the union.
In response, Dangote Refinery issued a statement on Saturday condemning the union’s actions, describing them as “economic sabotage.” The company insisted it had followed due process and said PENGASSAN’s directive to shut down operations was unjustified.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has called for calm and urged both parties to return to the negotiation table. In a statement released on Sunday, the Commission appealed for dialogue to resolve the disagreement and avoid further disruptions to the country’s energy sector.
Labour disputes within Nigeria’s oil and gas sector are not new, but this development involving Africa’s largest refinery has drawn wider attention due to its potential impact on the economy. The Dangote Refinery is a major project expected to refine up to 650,000 barrels of crude oil per day at full capacity.
