FG Brokers Peace Between Dangote Refinery and PENGASSAN

The Federal Government has resolved the industrial dispute between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), ending a strike that threatened nationwide fuel supply.

The truce, announced in Abuja on Wednesday, followed two days of negotiations led by the Minister of Labour and Employment, Mohammed Maigari Dingyadi, alongside security and oil sector chiefs.

Under the agreement, over 800 workers affected by recent restructuring will be reassigned within the Dangote Group without loss of pay. In return, PENGASSAN agreed to suspend its strike and restore operations at the 650,000-barrels-per-day refinery in Lekki, Lagos.

The strike, which began on Monday, was triggered by allegations that the refinery had dismissed unionised staff and replaced Nigerians with expatriates, mostly Indians. While the union condemned the action as “anti-labour,” management maintained that the restructuring was aimed at efficiency and safety improvements.

“This matter touches the heart of our economy and national security,” Dingyadi said in a communique, which reaffirmed workers’ right to unionise and prohibited victimisation of employees involved in the dispute.

The Dangote Refinery, a $19 billion investment and Africa’s largest, commenced operations earlier this year and is regarded as vital to ending Nigeria’s reliance on imported fuel. Analysts warned that a prolonged shutdown could have worsened inflation and deepened petrol shortages amid ongoing subsidy reforms.

PENGASSAN president, Festus Osifo, welcomed the outcome but stressed that the union would “monitor compliance closely.” A Dangote Group spokesperson also reiterated the company’s commitment to a “Nigerian-first” employment policy.