The Federal Government has secured a truce between the management of Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), bringing an end to a strike that threatened fuel supplies across the country.
The agreement, announced on Wednesday in Abuja, followed two days of negotiations led by Labour and Employment Minister Mohammed Maigari Dingyadi, with the involvement of security chiefs and top government officials.
Under the deal, the refinery committed to reassigning more than 800 workers affected by a recent restructuring to other Dangote Group entities without any loss of pay. In return, PENGASSAN agreed to suspend its strike and restore operations at the 650,000-barrels-per-day facility.
The industrial action, which began on Monday, was triggered by allegations that management had dismissed union members in retaliation for joining PENGASSAN. The union further accused the refinery of replacing Nigerian workers with expatriates, mainly from India, a claim the company rejected. Dangote Refinery maintained that the restructuring was aimed at improving efficiency and safety.
“This matter touches the heart of our economy and national security,” Dingyadi said in a communique, reaffirming workers’ rights to unionise under Nigerian law and international conventions. The agreement also prohibits victimisation of employees who participated in the dispute and was described as a “good faith” settlement.
The $19 billion refinery, located in Lagos State’s Lekki Free Zone, commenced operations earlier this year and is regarded as central to Nigeria’s efforts to end reliance on imported fuel. Analysts had warned that a prolonged shutdown could have worsened inflation and deepened petrol shortages, particularly amid ongoing subsidy reforms and rising living costs.
Government intervention brought together senior ministers, officials of the Nigerian National Petroleum Company Limited (NNPCL), and intelligence chiefs. A compromise was reached late Tuesday, averting what PENGASSAN had described as a looming nationwide disruption of fuel supply lines.
Both parties expressed cautious optimism after the talks. PENGASSAN president Festus Osifo said the union would “monitor compliance closely,” while a Dangote spokesperson reaffirmed the company’s commitment to a “Nigerian-first” employment policy.
