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FG Intervenes In Dangote Refinery–PENGASSAN Face-Off, Assures of Stable Fuel Supply
The federal government on Sunday waded into the face-off between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which, other things being equal, was expected to commence an industrial action in the early hours of this morning.
It assured that there will be no disruption in the supply of refined petroleum products across the country, as the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative met to review developments in the downstream oil sector.
The assurance followed the weekend’s directive issued by PENGASSAN to its affiliates to cut off crude oil and gas supplies to the Dangote refinery.
A meeting chaired by the Minister of Finance and the Coordinating Minister of the Economy, Mr. Wale Edun, underscored two recent developments, including the purported suspension of the Naira-for-Crude oil arrangement by the Dangote Refinery, and the concerns raised by PENGASSAN regarding the refinery.
A statement issued by the Director, Information and Public Relations, Ministry of Finance, Mohammed Manga, said aside from Edun, the Minister of Budget and Economic Planning, Atiku Bagudu; Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji; representatives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA); Nigerian National Petroleum Company Limited (NNPC); Central Bank of Nigeria (CBN); Afreximbank, and Dangote Refinery were also present.
It said: “The Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative met earlier today (Sunday) to review developments in the downstream oil sector.
“For the avoidance of doubt, the committee reassured that the crude oil for the Naira initiative will continue. It also assured that all outstanding issues, particularly the dispute between PENGASSAN and Dangote Refinery, are being addressed with urgency and in good faith.
“The federal government remains fully committed to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market,” the statement said.
Earlier, PENGASSAN directed its members to halt gas supply to the Dangote Petroleum Refinery with immediate effect.
In a letter signed by the General Secretary, Lumumba Okugbawa, the union accused the refinery management of disengaging unionised workers and embarking on a “mission of misinformation and propaganda” instead of engaging meaningfully with the union.
PENGASSAN instructed all its branch chairmen to ensure that gas supply to the refinery is cut off without delay. The directive also included shutting all crude oil supply valves to the refinery and halting all loading operations for vessels headed there.
The union described the action as a necessary response to protect the constitutional rights of workers to unionise.
PENGASSAN attributed its latest action to Dangote Refinery’s alleged unilateral action in sacking over 800 staff members for joining the Association.
Okugbawa stated that the National Executive Council (NEC) of PENGASSAN held an emergency meeting of all its branches on Saturday, October 27 and resolved that members should withdraw all services effective 00:01 on Monday, 29th of September, 2025.
“This includes all control room operations, panel operations, and outfield personnel. No intervention whatsoever will be entertained across field locations except where the safety of personnel and assets is at risk; such clearance must be obtained from the National Secretariat.
“All IOC branches must ramp down gas production and supply to Dangote Refinery and petrochemicals. All processes that involve gas and crude supply to Dangote Refinery should be let off effectively immediately. No man is bigger than our country! An injury to one is an injury to all,” the union said.
The association urged its members to immediately embark on prayers, calling on God to intervene and give courage to those in authority to rein in Dangote and his co-travelers on the need to obey the laws of our country.
However, the Dangote refinery described the move as a brazen, albeit shocking display of lawlessness and criminality by PENGASSAN.
“Absolutely no law gives PENGASSAN the right to direct its branches to ‘cut off’ gas and crude oil supplies to Dangote Refinery or at all. There is also no law in our statute books that would support or enable the PENGASSAN branches having to cut off gas and crude oil supplies to Dangote Refinery or at all.
“Besides, it constitutes a criminal conduct for PENGASSAN or its members to disrupt and/or interfere howsoever in the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil to the Refinery.
“Those supply contracts were not entered into with PENGASSAN; they were entered into by Dangote Refinery with third party vendors and suppliers and PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts.
“Perhaps, PENGASSAN needs to be reminded that Nigeria is a country governed by laws. Our laws do not brook self-help and mob action that could introduce mayhem and chaos and easily translate into anarchy,” a statement by the refinery said.
But amid its cold war with management of Dangote Refinery, the leadership of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has raised alarm over what it described as desperation by a certain group to break its rank through the promotion of a phony forum called Elders of the Petroleum Tanker Drivers (PTD) branch of NUPENG.
Williams Akporeha and Afolabi Olawale, National President and General Secretary, respectively of the Union raised the alarm in a press statement on Sunday night.
The leadership of NUPENG which maintained that such a Forum was unknown to its constitution noted that certain forces it described as “unconscionable Capitalists with filthy wealth,” were behind the faceless groups to deceive, manipulate, mislead and create confusion within the oil and gas sector and the wider public.
The statement warned members of the public and the media to be wary of the so-called PTD Elders which it insisted was fraudulent, illegitimate, and acting with criminal intent.
The leadership of NUPENG further declared that the only National Chairman of the PTD- NUPENG accorded recognition by its Constitution is the one under the leadership of Augustine Egbon.
“The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) issues this stern warning to all stakeholders, security agencies, the media, and the general public regarding the criminal and fraudulent activities of some faceless groups and individuals who are impersonating a s leaders and elders of the Petroleum Tanker Drivers (PTD) branch of NUPENG.
“It has come to our attention that these unscrupulous elements are operating under the non-existent and illegitimate banner of “PTD Elders” or “PTD Leaders” to deceive, manipulate, mislead and create confusion within the oil and gas sector and the wider public.
“We wish to state clearly here, that these individuals are paid agents of unconscionable Capitalists with filthy wealth accumulated over the labour and sweat of workers who have been denied the right of freedom of association/unionism.
“The paid agents have engaged in failed attempts to blackmail, misinform and manipulate the public for the sake of destabilising NUPENG and the Petroleum Tanker Drivers Branch of NUPENG.
“For the records, the struggle to control, manipulate and totally destroy the soul of NUPENG and the Petroleum Tanker Drivers Branch of the Union by unconscionable capitalists and their hired agents started long before now, but they have always been failing in their evil machinations and missions due t o the alertness and vigilance o f committed and indefatigable members and leaders of our great Union and the PTD Branch of NUPENG,” the statement said.
In the same vein, the Nigerian Independent System Operator (NISO) has observed with concern the ongoing dispute between PENGASSAN and Dangote Refinery, which has resulted in directives to suspend the supply of crude oil and natural gas to the facility.
“NISO wishes to draw attention to the potential implications of this action on the nation’s power sector. The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations and undermine the stability and reliability of electricity supply across the country.
“While NISO is considering measures to mitigate total grid collapse, we urge all parties involved to embrace dialogue and lawful mechanisms of dispute resolution in the overall interest of the economy and the wellbeing of Nigerians at large.
“We reaffirm our commitment to ensuring a secure and reliable operation of the national grid and will continue to support wider efforts aimed at safeguarding energy security” the NISO statement added.
In a related development, the Concerned Nigerian Consumers Forum has called on the federal government and the Department of State Services (DSS) to investigate what it described as desperate attempts by PENGASSAN to undermine the Dangote Refinery, a critical national asset aimed at achieving Nigeria’s energy independence.
In a statement signed by Olabisi Taiwo, President, and Justice Akani Alikor, Secretary, the Forum expressed alarm over PENGASSAN’s threats to picket the $20 billion refinery over alleged mass sackings.
The Forum accused the union of risking Nigeria’s return to fuel scarcity, economic instability, and national embarrassment, urging Nigerians to question PENGASSAN’s motives.
“PENGASSAN, alongside NUPENG, played a significant role in the collapse of Nigeria’s public refineries in Port Harcourt, Warri, and Kaduna,” the Forum stated.
“They resisted reforms, blocked privatisation, and crippled fuel supply with strikes. Their actions contributed to the rot that turned these refineries into relics of corruption and mismanagement.”
The Dangote Refinery, the world’s largest single-train refinery with a capacity of 650,000 barrels per day, is a private initiative designed to end Nigeria’s reliance on imported fuel, stabilize prices, and create jobs.
The Forum emphasised that the refinery, which employs over 3,000 Nigerians and continues to recruit, is not anti-labour but focused on operational efficiency and safety.
The company’s recent reorganization, according to Dangote, was prompted by acts of sabotage that threatened operations.
The Trade Union Congress of Nigeria (TUC) has also condemned what it described as recent anti-worker actions of the management of Dangote Petroleum Refinery.
The apex labour centre said it was in full solidarity with PENGASSAN; and has placed all its affiliates on red alert and stand-by for further directives. The union demanded immediate and unconditional reinstatement of all affected workers.
In a statement signed by the Secretary General of TUC, Nuhu Toro, the union condemned the alleged unjust termination of workers for exercising their constitutional right to freedom of association and unionization.
TUC said: “We stand in full solidarity with the affected workers and with their union, our affiliate PENGASSAN, whose members have been victimised merely for declaring membership.
“Such actions amount to a direct assault on Section 40 of the Nigerian Constitution and on Nigeria’s obligations under International Labour Organisation (ILO) conventions. Our demands are immediate and unconditional reinstatement of all affected workers.
“Public apology from Dangote management with firm assurances against future victimisation. An independent investigation involving the Ministry of Labour (ILO) and stakeholders into the refinery’s labour practices.
“Congress hereby places all affiliates on stand-by for a national industrial action if Dangote management fails to comply with these demands within a reasonable time. No corporation, regardless of size or wealth, will be allowed to trample on the dignity and rights of Nigerian workers.
“The TUC stands united and ready to act decisively in defense of our members and the Nigerian workforce,” it said.
