As of press time on Monday night, representatives of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Refinery were meeting in Abuja, trying to reach an agreement to end the face-off between the two parties. The meeting was convened by the Federal Ministry of Labour.
Earlier in the day, Electricity supply across Nigeria had experienced a sharp decline as power generation plunged to 1,062.06 megawatts (MW), due to a significant disruption in gas supply caused by ongoing industrial action by the oil workers.
The cut in gas supply has directly affected gas-fired power plants, which constitute a substantial portion of Nigeria’s electricity generation capacity, exacerbating an already fragile power sector.
This comes as the oil workers, who began their nationwide strike on Monday, shut down offices of the Nigerian National Petroleum Company Limited (NNPCL), the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other key agencies.
The industrial action, organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), is to protest the sackings of about 800 workers at the Dangote Refinery for allegedly belonging to the association.
The senior oil workers’ union had also directed its members to halt the supply of crude oil and gas to the Dangote Petroleum Refinery immediately.
Gas-powered plants, which typically account for nearly 80 per cent of Nigeria’s total installed generation capacity, were forced to reduce output or go offline completely, causing the nationwide dip in available power.
According to recent data from the Nigerian Electricity System Operator (NESO), total power generation fell from an average of about 4,328.40 MW before the strike to the current 1,062.06 MW.
Hydro-powered companies, such as Jebba Hydroelectric Power and Shiroro Power, generated the available power.
Confirming the gas supply cut to LEADERSHIP on Monday, the executive secretary of the Association of Power Generating Companies (APGC), Dr Joy Ogaji, said that the striking oil workers made good their threat to cut gas supply to Nigerian Gas Infrastructure Company (NGIC), the firm that transports gas to generating companies and other users.
Speaking with our correspondent, Dr Ogaji said, “After the weekend’s instructions from the gas suppliers and the NGIC, the gas transporter, that the GenCos should shut down, especially in the western states, they all shut down.”
“So we are not aware of any reversal. If you even check, the power generation is low. We saw about 2,000 megawatts, and it’s a result of that. So, to the best of my knowledge, they have not reviewed it,” she said.
Meanwhile, the industrial action began early Monday morning and has effectively halted routine operations and administrative activities within critical energy sector institutions, including the Ministry of Petroleum Resources, as well as oil and gas agencies and parastatals under it.
LEADERSHIP’s checks in Abuja revealed that ministry staff and its agencies were locked out of their offices by the striking union members.
The NNPCL, NMDPRA, and NUPRC had their main entrance gates locked and barricaded by PENGASSAN members.
Confirming the situation, the PENGASSAN chairman in NMDPRA, Tony Iziogba, said that the union had achieved “100 per cent compliance,” effectively restricting access to staff and visitors.
He added that his colleagues had also enforced 100 per cent compliance at the NNPCL and other relevant agencies.
PENGASSAN said the strike became inevitable after the alleged wrongful dismissal of about 800 workers at the Dangote Petroleum Refinery.
Expectations are high that the emergency meeting convened by the Minister of Labour between the parties should yield positive outcomes.
NLC Orders Nationwide Mobilisation Against Dangote Over Anti-Labour Practices
The Nigeria Labour Congress (NLC) has directed its affiliate unions to commence immediate mobilisation and preparation for industrial action against the Dangote Group, accusing the company of anti-worker policies and disregard for labour laws.
In an internal memo signed by NLC president, Comrade Joe Ajaero, and circulated to leaders of unions including NUPENG, NUEE, MWUN, NUFBTE, and others, the congress described the group’s industrial relations strategy as a deliberate campaign of union-busting, worker enslavement, and gross impunity.
According to the NLC, the ongoing dispute between the Dangote Group and oil workers’ unions PENGASSAN and NUPENG is a reflection of wider structural violations that undermine workers’ rights across the company’s operations.
The congress accused the group of acting as a state within a state by flouting Section 40 of the Constitution, breaching International Labour Organisation (ILO) conventions, and disregarding Nigeria’s labour laws.
The NLC outlined a three-point resolution which includes the immediate alert and mobilisation of all affiliate unions, prioritisation of unionisation across Dangote workplaces, and preparation for nationwide engagement to compel the conglomerate to respect workers’ rights.
Each union has been directed to establish an Action Mobilisation Committee and liaise with the NLC Secretariat within 72 hours to harmonise strategy and logistics.
The congress listed its demands as the unconditional recognition of workers’ freedom to unionise, an end to intimidation and victimisation, and compliance with national labour laws and institutions. It vowed to resist any attempt by the company to undermine labour rights, warning that the struggle will not be derailed by “media verbiage and paid hirelings.”
The memo reads, “This letter serves as a formal and urgent request in response to the protracted and deliberate anti-worker crusade being waged by the Dangote Group against the Nigerian working class.
Consequently, we have resolved as follows: Request for total mobilisation of all unions and workers. All aforementioned affiliate unions are hereby placed on immediate and full alert.
The impunity of the Dangote Group must be met with the resistance of organised labour. No amount of media verbiage and paid hirelings will stop us from fighting for our liberty in the face of apparent regulatory capture where the state seems to have abdicated its responsibility to hold this behemoth accountable for its breaches of our laws.”
Organised Private Sector says strike is economic sabotage
More Organised Private Sector (OPS) groups have frowned on the steps taken by PENGASSAN to cut off supply to Dangote Refinery in protest against the retrenchment of 800 staff by the refinery.
Stakeholders, therefore, warned that the country faces renewed foreign exchange (FX) pressures, as PENGASSAN directs its members nationwide to withdraw their services following the alleged mass dismissal of more than 800 Nigerian workers by Dangote Refinery.
This is as the National Industrial Court sitting in Abuja on Monday issued an interim order stopping PENGASSAN from continuing with its nationwide industrial action against the Dangote Petroleum Refinery and Petrochemicals.
Some members of the organised labour sector have called for the reinstatement of the 800 sacked workers, accusing Dangote of displacing qualified Nigerian professionals and replacing them with foreign labour. However, some OPS groups felt PENGASSAN is biting off more than it can chew by allowing the whole country to pay for the sin of one company.
In a chat with LEADERSHIP, stakeholders from the private sector wondered what prompted PENGASSAN to take such an extreme step, describing it as economic sabotage, and calling on both parties to return to the negotiating table to resolve their differences.
On its part, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) lamented that the chamber is deeply concerned about the damage the strike would cause to individuals and the economy at large.
According to its national president, Dr Jani Ibrahim, this conflict could wreak havoc on the economy and weaken public services across the country. He called on both parties to return to the negotiating table, adding, “A nationwide shutdown in the energy sector at this time would be a crippling blow to Nigeria’s stabilising economy. The business community is alarmed at the possible consequences for jobs, inflation, and investor confidence. Dialogue is not optional; it is urgent and necessary.”
On his part, a lawyer, activist, and expert on labour matters, Barrister Nnanna E. Ogbo, in a chat with LEADERSHIP justified the action of PENGASSAN, saying, “I support the workers’ right to challenge Dangote if their mass sackings breached labour laws or union rights.”
To him, “But the implications are weighty: legally, the strike could be declared unlawful if due process was not followed; economically, it risks fuel scarcity, higher pump prices, inflation, and loss of government revenue; socially, it could trigger public anger and pressure on government.”
Similarly, a Lagosian, Mr Kunle Lekan, described the action by PENGASSAN as “an overzealous act. It is totally wrong for labour to punish the whole country for the supposed offence of one person or organisation.”
Another Nigerian, Mr Chris Uche, said, “Due to the sensitivity of the sector, labour unions in oil and gas have been holding the country to ransom. In a free economy, you can’t force a private company to accept unionism. This decision is at the prerogative of the company whether to join a union or not. However, if it’s a government-owned entity, they have every right to protest any act of anti-unionism. They should stop taking the country for a ride.”
Some market observers said this development may discourage private investors from investing in the oil and gas sector as they are not assured that there won’t be labour interference that may sabotage their investments. This could push the Nigerian economy’s daily revenue loss to about $110.8 million from crude oil export and trigger the shutdown of gas power plants – a situation which may ground the already distressed economy.
Already, gas providers reported yesterday that gas facilities supplying the Escravos Lagos Pipeline System had been shut down, resulting in disruption of gas supply to the distribution network. Operators and customers were informed that gas would be suspended temporarily until the crisis is addressed.
In the same vein, the National Industrial Court sitting in Abuja has, on Monday, issued an interim order stopping the group from continuing with its nationwide industrial action against the Dangote Refinery.
Justice Emmanuel Sublim, presiding over the matter, granted the order, saying the strike meant to disrupt the operations of the Refinery by cutting crude and gas supplies to it was capable of causing serious damage to the nation’s economy and that the Association should stop forthwith.
The decision of the court was consequent upon an ex parte application filed by the Refinery’s counsel, Mr George Ibrahim, SAN.
Moreover, the court equally restrained key regulatory bodies—the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)—from enforcing any directive by PENGASSAN to halt crude oil and gas supply to the refinery.
In his ruling, Justice Sublim said the court agreed with the Refinery’s submission that the strike could cause irreparable damage if not promptly addressed. He emphasised the need to maintain the status quo pending the determination of the substantive motion.
The court further directed that the restraining order and suit be served on all defendants without delay. The matter has been adjourned till 13 October for hearing of the motion on notice.
In the same vein, the leadership of the Association of Senior Civil Servants of Nigeria (ASCSN) has thrown its weight behind PENGASSAN.
In its statement sent to LEADERSHIP on Monday, the president, Comrade Shehu Mohammed, expressed total solidarity with the Trade Union Congress of Nigeria (TUC) and PENGASSAN in condemning the unjust and anti-labour practices recently carried out by the management of Dangote Petroleum Refinery.
In the statement, Mohammed said, “The arbitrary dismissal of workers for exercising their constitutional right to freely associate and belong to a trade union is a gross violation of Section 40 of the Nigerian Constitution and a direct breach of Nigeria’s obligations under International Labour Organisation (ILO) conventions.
“Such acts are unacceptable and cannot be tolerated in a democracy. We, therefore, stand shoulder to shoulder with TUC and PENGASSAN in demanding the immediate reinstatement of all affected workers just as we support the call for an independent investigation into the refinery’s anti-worker practices.”
Furthermore, Mohammed warned “that if this matter is not resolved within a reasonable time frame, the ASCSN may be compelled to join the national action in full force, in defence of workers’ rights and to ensure justice is done.”
TUC backs PENGASSAN
However, and in solidarity, the Trade Union Congress (TUC) has thrown its weight behind the strike and demanded Dangote Refinery follow labour law.
The secretary general of TUC, Comrade Nuhu Toro, called on Dangote Refinery to reinstate the 800 staff that were sacked for allegedly belonging to a trade union in line with International Labour Organisation (ILO) standards.
In a swift reaction, Dangote accused PENGASSAN of deploying terrorist tactics to frustrate investors.
Dangote, however, warned that cutting crude oil and gas supplies to the refinery could plunge Nigerians into fresh rounds of fuel scarcity while inflicting huge revenue losses on the government.
In a statement, the refinery described the directive as “criminal, reckless and an act of economic sabotage” that, if enforced, would disrupt the production and nationwide supply of critical petroleum products, including petrol, diesel, aviation fuel, kerosene, and cooking gas.
