Oil Workers vs Dangote: Nigerian govt steps in as strike raises fuel crisis fears

The Nigerian government is wading into a dispute between Dangote Refinery and PENGASSAN-led oil workers, after a strike over mass layoffs threatened nationwide fuel supply.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) declared a nationwide walkout on Saturday to protest the dismissal of 800 Nigerian workers at the $20 billion Dangote Refinery in Lagos. The union described the sackings as “an affront to all workers in Nigeria and a deliberate violation” of labour laws and international conventions.

“We are meeting with (government officials) this afternoon,” Lumumba Okugbawa, PENGASSAN’s secretary-general, told Associated Press on Monday, as oil operations across key institutions were disrupted. Oil accounts for more than 80% of Nigeria’s export revenue.

Labour Minister Muhammad Maigari Dingyadi urged the union to suspend its strike, warning that prolonged industrial action could worsen hardship for Nigerians and destabilize the economy. “I appeal to both parties to be mindful of the importance of the petroleum sector to the country,” Dingyadi said in a statement. He confirmed that both sides had been invited to an emergency conciliation meeting in Abuja.

Finance Minister Wale Edun, speaking after a meeting of the government’s crude oil and refined products committee, assured Nigerians that fuel supply would not be disrupted despite the strike threat. He noted that an earlier dispute over a naira-for-crude arrangement with Dangote Refinery had already been resolved, and pledged that “all outstanding issues, particularly the dispute between PENGASSAN and Dangote Refinery, are being addressed with urgency and in good faith.”

“Sabotage”

Dangote Industries has defended its actions, saying the workers were dismissed for sabotage that threatened the refinery’s operations. In a statement, the company branded PENGASSAN’s strike “lawless” and “criminal.”

But laid-off staff insist conditions were unsafe and untenable. “I worked there for two years and I did not get personal protective equipment, not even a face mask,” a former engineer said, according to AP, speaking on condition of anonymity.

The refinery, inaugurated in May 2023 by billionaire Aliko Dangote, was touted as a game-changer for Nigeria, designed to end decades of reliance on imported fuel. It began production last year after repeated delays and has since stabilized fuel supply in a country that previously relied on imports for domestic needs.

Now, the clash with oil workers has raised fears of a broader disruption.