PENGASSAN Halts Gas, Crude Supply to Dangote Refinery Over Workers’ Sack

The standoff between Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has intensified, as the union ordered its members to suspend gas and crude oil supplies to the refinery following the alleged victimisation and dismissal of unionised workers.

In a directive issued from its National Secretariat to branch leaders, PENGASSAN’s General Secretary, Lumumba Okugbawa, accused the refinery’s management of targeting employees for exercising their constitutional right to freedom of association.

“The management of Dangote Petroleum Refinery has disengaged our members in reaction to their decision to unionise. This illegitimacy cannot stand,” the union declared in its memo, adding that instead of dialogue, the company resorted to “misinformation and propaganda.”

Following the directive, the Nigeria Gas Infrastructure Company (NGIC) was instructed to immediately halt gas supplies to the refinery. Crude oil supply valves are also to be shut, while loading operations for vessels headed to the facility have been suspended. PENGASSAN also mandated its branch chairmen to provide updates on compliance.

The latest move deepens the ongoing dispute between the refinery and the union. Earlier, PENGASSAN’s Dangote Refinery Branch, in a petition signed by Branch Chairman Abdulfatai Muhammed and Secretary Eseoghene Choice, accused management of anti-labour practices, including forced transfers of union members, denial of personal protective equipment (PPE), poor welfare, wage discrimination, and overreliance on expatriates in top positions.

The union claimed Nigerian engineers at the refinery earn far less than their counterparts in other oil and gas companies, while expatriates receive higher pay and occupy most senior roles. It also alleged that workers face hazardous conditions without hazard allowance, health insurance, or compensation.

PENGASSAN argued that these practices violate Section 40 of the 1999 Constitution, which guarantees freedom of association, as well as the Nigerian Oil and Gas Industry Content Development Act of 2010.

Dangote Refinery has consistently denied allegations of anti-labour practices. In a previous statement, the company said more than 3,000 Nigerians are employed at the refinery and rejected claims that local workers were being replaced by foreigners. It explained that recent staff changes were part of internal reorganisation aimed at improving efficiency, adding that expatriates were hired solely for technical expertise and knowledge transfer.

Despite these assurances, PENGASSAN insists its grievances must be addressed urgently. The union has urged the government and regulators to intervene, warning that failure to resolve the issue could destabilise the oil and gas industry and pose a threat to national energy security.

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