The industrial dispute between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) took a dramatic turn on Saturday as the union ordered seven branches to cut off crude oil and gas supplies to the $20bn facility.
In a letter dated September 26 and signed by its General Secretary, Lumumba Okugbawa, the union accused the refinery’s management of firing its employees in reprisal for exercising their constitutional right to join the union.
The union’s move escalates the impasse, with PENGASSAN charging the refinery with anti-labor activities and the wrongful dismissal of its employees.
PENGASSAN directed its branch chairmen in key upstream and midstream oil companies, including TotalEnergies, Chevron, Seplat, Shell Nigeria Gas, Oando, and Nigerian Gas Infrastructure Company, to immediately shut down all crude oil and gas supplies to the refinery.
The directive comes after PENGASSAN alleged that Nigerian workers were sacked by Dangote Refinery after joining the union, claiming that management also withdrew staff buses and denied entry to locals while allowing expatriates access.
The union threatened to picket the refinery if the situation was not resolved.
In a statement on Friday, the management of the refinery clarified that only a small number of workers were affected by what it described as a reorganization aimed at preventing acts of sabotage within the facility. It said over 3,000 Nigerians remain in employment, rejecting claims of mass layoffs.
Dangote maintained that the restructure was essential in response to what it described as frequent acts of sabotage in several refinery units, which presented major dangers to human lives and operations.
As a result, PENGASSAN asked its branches in TotalEnergies, Seplat, Chevron, Oando, Shell Nigeria Gas, Renaissance, and NGIC to immediately cease gas supply to the refinery.
PENGASSAN described the move as “illegitimate” and accused the refinery of spreading misinformation instead of addressing the matter through dialogue.
“As you are aware, the management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to be unionized.
“They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.
“Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the refinery should be shut. The loading operation for the vessel headed there should be halted immediately,” the directive read.
The union further directed the NGIC chairman to guarantee strict compliance with the decision and instructed all branch chairmen to provide frequent updates on the action taken.
“NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive. Kindly accept the assurances of our highest esteem. Thank you,” the statement read.
To reaffirm its solidarity, PENGASSAN concluded the directive with the slogan “Injury to one! Injury to all!”
The company said on Thursday that it would cease naira-based petrol sales beginning September 28 due to the expiration of its crude-for-naira allotment.