The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has agreed to suspend its nationwide strike following a resolution reached with the Dangote Refinery management.
The truce, brokered by the Federal Government, centers on the company’s commitment to redeploying disengaged workers rather than terminating their employment.
The agreement was formalized in a communique signed after a two-day conciliation meeting in Abuja, which was convened due to the strike’s threat to national energy security.
Key Resolutions of the Settlement
The conciliation meeting resulted in binding agreements addressing both the cause of the dispute and the workers’ rights:
Redeployment, Not Sack: The Dangote Group management agreed to immediately begin redeploying the affected PENGASSAN members (over 800 workers) into other subsidiaries within the group. Critically, these workers will be redeployed “without any loss of pay.”
Respect for Union Rights: The agreement explicitly affirmed that unionisation is a fundamental right of workers under Nigerian law and must be respected by the company.
No Victimization: Both parties pledged that no worker would be victimized or suffer any adverse consequences for their participation in the dispute or the strike.
Strike Suspension: PENGASSAN, in turn, agreed to commence the process of calling off the strike immediately, ensuring the resumption of gas supply and services.
Background and Economic Significance
The dispute began after the Dangote Refinery terminated the appointments of over 800 PENGASSAN members, citing an “ongoing reorganization.” PENGASSAN, however, countered, raising alarms about mass dismissals, mass transfers, and the alleged replacement of Nigerian staff with foreign workers, which it argued violated labor laws.
The standoff escalated when the union initiated industrial action, halting the supply of gas and crude oil to the refinery. This forced the intervention of high-level government officials—including the National Security Adviser, Ministers of Finance, and State for Petroleum (Gas)—who cited the risk of “adverse effects on the economy and energy security” as the reason for their urgent involvement.
The resolution prevents a major industrial disruption, safeguarding the nation’s energy supply and affirming workers’ rights in a key industrial sector.
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