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Tag: PENGASSAN

The oil unions we knew

The sector’s labour leaders must realise that the dynamics are changing and they must change tactic or die

Anyone conversant with how our oil sector functions would have known that the purported truce brokered by the Department of State Service (DSS) early last month between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) would not last because what is on the surface is not just the issue. There is high-wire financial and other considerations that led to the impasse between the refinery and the union

That explained why, almost immediately after the resolution of the dispute between the refinery and NUPENG, the other major union in the oil sector, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) began its own strike. The strike was initially called, again, over Dangote Refinery’s alleged sack of 800 Nigerian workers for joining PENGASSAN, and replacing them with foreigners.

The refinery confirmed the job cuts and described them as a “reorganisation exercise” aimed at improving efficiency. But it said it never replaced Nigerians with foreigners as alleged by PENGASSAN, which was joined in solidarity in the strike by NUPENG.

I knew there was not going to be any respite after the NUPENG and Dangote deal. Even now, it does not seem to me that we have got to the end of the matter, despite the deal that made PENGASSAN to suspend its two-day strike started September 28, and ended on October 1.

I saw all of these coming because one does not have to be a prophet to know that what is rearing its ugly head in the oil sector would eventually come to pass. That was why I had asked several times on this page, somewhat rhetorically, why things that are as soft as bean cake in the mouths of people in other parts of the world become tough bones in the mouths of Nigerians, when Dangote Refinery and the former management of the Nigerian National Petroleum Company Ltd (NNPCL) quarrelled shortly before the then group chief executive officer of NNPCL, Mele Kyari, was sacked on April 2. The flip-flop policies of the NNPCL started causing disruptions in the price of fuel which had started to decline and stabilise. Things only took a dramatic turn as the NNPCL refused to renew the naira-for-crude deal with Dangote Refinery.

What I am saying is that what we seem to be having, even now, is peace of the graveyard. As a Yoruba proverb says, ‘oku te sin leekan, ese e si wa nita’ (the legs of the corpse you buried are protruding outside the grave).

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When the present crisis began about three weeks ago, some allegations were made against the unions in the oil sector. One that stunned me most was the one that NUPENG collects about N70,000 on every loaded truck at the NNPCL depots.

Some experts have done the calculations of the average number of trucks loaded daily and multiplied by the N70,000 or N75,000. I couldn’t believe my ears when I first heard about this and the first question that came into my mind was ‘owo kinni’ (what is the money for?)

‎Weeks after, I have not seen anyone deny that allegation or say what the money is all about. Mum has been the word from NUPENG until PENGASSAN came up with its own strike. ‎ Ordinarily, our anti-graft agencies should have been interested in this and call for NUPENG’s books for scrutiny.

The truce reached on the two occasions between the oil unions and Dangote Refinery reminds me of the joke a colleague used to crack many years ago about an undergraduate student who was suspended for breaking one of the university’s rules. The young man was asked to bring his parents. It happened that only the father went with him, and he was a stark illiterate.

When they got to the vice-chancellor ‘s office, he told the father what the son did. The father agreed that his son did not do well and simply asked him to prostrate and apologise to the vice-chancellor. As soon as he did, the father asked him to take his bag and baggage to his hall of residence and sin no more, and thanked the vice-chancellor for his magnanimity! Is that how it works?

If the unions in the oil sector were truly patriotic, with power of strike that they deploy at will, our refineries should not have been dormant for the decades they have been. How else do you explain it: refineries are not working and the workers were getting paid for doing nothing? I saw figures that some experts quoted as what they collected as salaries and other emoluments running into trillions of Naira, for doing practically nothing over the years. As a matter of fact, they were still going on trainings abroad, according to some accounts, and NNPCL under successive governments was releasing funds for the travels and other emoluments.

The oil unions saw nothing to go on strike over all those years of the locust. Their members were getting salaries and the bank alerts were coming by way of check-off dues paid by the members, which, really, seemed the basic concern of the unions and their leaders.

It was so easy for both the unions and the respective managements of the NNPCL to be chummy because, again, permit me to fall back on another Yoruba proverb: ‘ko s’aremo lomo elede, gbogbo won lo nyi’ra mere’ (there is no difference between the first and last borns of pigs as they all play happily together in the mud).

Both the NNPCL officials and the unions were all united by the monies they all made off Nigerians’ misery, despite the fact that the refineries were not working.

If care is not taken, the oil sector unions may be looking forward to such abnormality of ‘oga ta, oga o ta, owo alaaru a pe’ (it is not the truck pusher’s business whether his client sells or not; his (the truck pusher) will get his money complete even now that the sector has been fully liberalised!

And, before you say Jack Robinson, the unions would call their members out on strike, saying it is not their members’ business whether Dangote Refinery is functioning or not. They would be deaf and blind to the reality that they are no longer dealing with a government entity. It is only government that can continue to spend public funds the way the unions are used to: paying salaries without productivity. As we all know, government’s money in Nigeria is like a mad man’s leg which anyone can always go to cut a piece from because it belongs to no one in particular! Or, is the mad man himself not ‘government pikin’ in our country?

It would be naive, mischievous or simply fool-hardy for anyone to expect Dangote Refinery to leave distribution of its products in the hands of NUPENG as we now know it. That would tantamount to committing business suicide. Even at a point, the Federal Government began to buy fuel tankers because it did not want to leave that in the hands of unions that would declare strike overnight and cripple its activities over mundane matters.

The owner of the refinery has studied the sector very well; and you cannot blame him. You don’t invest over $20billion in a project and some people without a dime in it would come and ruin it for you, just because they are involved in the distribution of the products.

I had said it before, that we would see strange developments in the oil sector because, one; many of the players in the sector have been so used to importation and all its trappings and they cannot imagine how all of that would end overnight. The old regime profited them and it is impossible for them to contemplate that all that is over now. Seeing fuel pumps dispensing fuel for one year without disruption is enough to give them heartache. We cannot rule that out in the strike we just witnessed.

The fact of the matter is that it can no longer be business as usual in the oil sector because of the dynamics of ownership that has changed hands.

Newspaper owners in the country would not forget their experiences with newspaper agents; people who have no investment in the multi-billion business but want to determine what happens in the business, including how much the newspaper should be sold, just because they are involved in the distribution process.

With the refinery investing N720 billion on 4,000 tankers, the signal should be clear to the oil unions that they are dealing with someone with the muscle to drive his company with little push, that not even the labour unions would wield any significant influence beyond getting their check-off dues from their members, not from the refinery or Nigerians that would bear the N75,000 per truck that they claim NUPENG alone corners.

Ordinarily, these trucks would not have been necessary if successive governments had maintained the oil pipelines in the country.

Without doubt, NUPENG has turned full cycle from the progressive NUPENG of the Frank Kokori’s days to what it has become today. The NUPENG that Kokori led from 1982 to m1999 was one that fought on the side of the Nigerian people against our military overlords who were not ready to gift us democracy in spite of their rhetoric to do same. Unlike today’s union leaders, when the union called workers out for strike then, the nation caught cold because it was not used like a toy that it has become. Nigerians would not forget the heroic role the union played in the struggle to send the soldiers to their barracks, leading to the democracy that we enjoy today.

In spite of the fact that the NUPENG’s leadership did suffer in the course of the democratic struggle, they lived a Spartan lifestyle. We never heard they collected huge sums on every truck of fuel. Not so today’s labour leaders; the very extravagant lifestyle that they condemn the politicians for, they are also living in their own fiefdoms.

In fact, if the NUPENG and PENGASSAN leaders think deeply, they would realise that Nigerians no longer see them as the pristine conscience of the nation that they used to be, especially in their ongoing fight with Dangote Refinery. Ordinarily, they should have been the toast of the man on the street, with the full weight of Nigerians behind them. Fighting for Nigerians is not the same thing as fighting for selfish or parochial interests.

The earlier the unions in the oil industry realised that things have changed in that industry from one in which government was the dominant player and adjust accordingly, the better for them. ‎At the rate they are going, it is only a matter of time for them to demystify themselves, preparatory to their inglorious slide into irrelevance and obscurity.

Labour leaders in the oil sector should thank God for democracy. In some other climes, they would be in the dock for economic sabotage.

Now, you may ask me; where do I place monopolistic tendencies in all of these? That is a business left for the Federal Government to address. It is its duty to seek a delicate balance between some spoilt unions and business investment, not Dangote’s.

October 5, 2025
PENGASSAN’s strike plunged oil output by 16% – NNPCL
- Oshiomhole slams association for escalating dispute
Nigeria’s daily oil and gas production slumped during the three-day nationwide strike by Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN). The industrial action was called off Thursday after government-mediated talks with Dangote Refinery.

The strike, which began on September 28, was called after the Dangote Refinery, Africa’s largest with a crude processing capacity of 650,000 barrels per day, dismissed more than 800 unionised staff. The walkout cut about 283,000 barrels per day of oil, that is about 16 per cent of national output and 1.7 billion standard cubic feet per day of gas, while knocking out more than 1,200 megawatts of power generation, according to a report by the Nigerian National Petroleum Company (NNPC) Limited. The NNPC had warned the disruption posed a “material threat to national energy security” if prolonged.

Key facilities shuttered during the action included the Shell-operated Bonga floating production unit and the Oben gas plant, while the restart of Nigeria LNG’s Train 5 and 6 was delayed, and midstream networks were disrupted.

Cargo loadings for Dangote refinery as well as at export terminals such as Akpo, Brass, and Egina were also delayed, risking demurrage costs and at least five critical maintenance and project timelines slipped, the report said.

NNPC said it activated business continuity plans and deployed non-union staff to sustain operations during the stoppage, but warned of “significant revenue losses” from missed liftings and gas sales. The union suspended the strike after talks brokered by the government, easing immediate supply risks, though NNPC cautioned that systemic vulnerabilities remained.

Meanwhile, Senator Adams Oshiomhole (APC – Edo North) has criticized the PENGASSAN for shutting down government-owned oil organizations over its trade dispute with Dangote Refinery.

Speaking on ‘The Morning Show’ on Arise News Television yesterday, the former Nigeria Labour Congress (NLC) president said the action was misplaced and should not have been escalated to the level of crippling the oil sector.

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PENGASSAN had ordered members to withdraw their services following the alleged dismissal of about 800 workers by Dangote Refinery, leading to the closure of the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) offices in Abuja on Monday.

The move triggered fuel scarcity across the country as queues resurfaced at petrol stations.

Oshiomhole, however, maintained that while workers’ rights must be respected, shutting down critical oil agencies in solidarity with a small group of employees was an overreach.

Oshiomhole said, “what I’m not sure is right is the ease with which Ferguson resorted to escalating the matter to secondary level, what we call the secondary solidarity, to a point of shutting down the oil sector. I think that, in seeking to protect a particular set of workers, you do not then risk the job of several other workers.”

Oshiomhole averred that before a labour union can call for a national strike, there must have been an argument or a fight with the government over an issue that affects all Nigerians.

“I don’t have any proof, but my experience is that, before you shut the gate of NNPCL, there has to be a fight. So when I saw NNPCL’s gate effortlessly closed, all the other companies, government-owned oil companies, without any effort. I’m like, if these were private employers, would they allow their companies to close without any resistance… I do not think so. So, why is everybody seemingly so helpless that we are at the mercy of anyone?” he said.

Oshiomhole argued that labour unions’ operations are regulated by the law, adding that before union leaders can go to the extent of shutting down the economy, the workers must see a valid reason to support their call.

“Before you take those measures, you are ready for a fight. And the workers for them to follow must see the linkage between their well-being and what is at stake,” he said
October 4, 2025
Oshiomhole faults PENGASSAN over shutdown of govt oil agencies amid Dangote Refinery dispute

Senator Adams Oshiomhole (APC – Edo North) has criticized the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for shutting down government-owned oil organizations over its trade dispute with Dangote Refinery.

Speaking on ‘The Morning Show’ on Arise News Television on Friday, the former Nigeria Labour Congress (NLC) president said the action was misplaced and should not have been escalated to the level of crippling the oil sector.

PENGASSAN had ordered members to withdraw their services following the alleged dismissal of about 800 workers by Dangote Refinery, leading to the closure of the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) offices in Abuja on Monday.

The move triggered fuel scarcity across the country as queues resurfaced at petrol stations.

Oshiomhole, however, maintained that while workers’ rights must be respected, shutting down critical oil agencies in solidarity with a small group of employees was an overreach.

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Oshiomhole said, “What I’m not sure is right is the ease with which Ferguson resorted to escalating the manner to secondary level, what we call the secondary solidarity, to a point of shutting down the oil sector. I think that, in seeking to protect a particular set of workers, you do not then risk the job of several other workers.”

Oshiomhole averred that before a labour union can call for a national strike, there must have been an argument or a fight with the government over an issue that affects all Nigerians.

“I don’t have any proof, but my experience is that, before you shut the gate of NNPCL, there has to be a fight. So when I saw NNPCL’s gate effortlessly closed, all the other companies, government-owned oil companies, without any effort. I’m like, if this were private employers, would they allow their companies to close without any resistance… I do not think so. So, why is everybody seemingly so helpless that we are at the mercy of anyone?” he said.

Oshiomhole argued that labour unions’ operations are regulated by the law, adding that before union leaders can go to the extent of shutting down the economy, the workers must see a valid reason to support their call.

“Before you take those measures, you are ready for a fight. And the workers for them to follow must see the linkage between their well-being and what is at stake,” he said.

October 3, 2025
PENGASSAN vs Dangote Refinery: Stakeholders ask government to act

The petroleum sector is very important to the country’s economy. Apart from being its main revenue spinner, it is also a major employer, among others. Therefore, any crisis in the sector affects every facet of it. TOBA AGBOOLA, who sought stakeholders views, writes that the Federal Government should find a lasting solution to the imbroglio between Dangote Refinery and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to avert any future recurrence.

Stakeholders have expressed grave concern over the crisis between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery and Petrochemical, warning that the effect could cripple the nation.

According to stakeholders, the trade dispute has put Nigeria’s ambition of becoming Africa’s refining hub to test.

They warned that a prolonged dispute could push up fuel prices, strain households and businesses, and discourage local and foreign investors.

They, however, called for a final resolution to avoid such industrial disputes from escalating into a national emergency.

Also, the Nigeria Employers’ Consultative Association (NECA) expressed grave concern over the action by PENGASSAN, warning that the action amounts to self-help and tantamount to sabotage capable of derailing the country’s fragile economic recovery.

In a statement in Lagos, the Director-General of NECA, Mr. Adewale-Smatt Oyerinde, emphasised that a conflict is an inevitable feature of the labour ecosystem, and Nigeria has statutory and institutional frameworks to address any, including the Industrial Arbitration Panel (IAP) and National Industrial Court of Nigeria (NICN).

“Any action capable of discouraging investment, undermining enterprises sustainability, or harming the workers that the unions claim to protect will be counter-productive. While trade unions have the legitimate right to embark on industrial action, such rights must be exercised responsibly and within the bounds of the law.

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“It is unacceptable for any union to conscript or coerce those not interested in its action or disrupt the operations of legitimate businesses not party to the dispute. Treating institutions of labour administration with disdain and resorting to self-help is not only absurd but also against all known Conventions and Recommendations. When employers or workers are aggrieved, there are institutions created to adjudicate or arbitrate in such matters. Nigeria’s recovering economy cannot be sacrificed on the altar of actions and pronouncements that are alien to global and local industrial relations practice,” he said.

He noted that uninformed and disruptive actions that could jeopardise the nation’s economic survival are neither envisaged nor acceptable in global labour practice.

He said: “NECA will not be a passive onlooker as the foundation of Nigeria’s labour ecosystem is trampled upon. While we acknowledge the right to strike, such rights cannot infringe on the rights of others or threaten the survival of enterprises.”

Citing international labour instruments, including ILO Conventions 87 and 98, Oyerinde reaffirmed NECA’s commitment to upholding global labour standards, decent work and responsible business conduct, while not negotiating employers’ rights to manage their enterprises and investments within the ambit of the law.

He stressed that the protection afforded to union officials under international conventions does not extend to sabotage, coercion, or actions that undermine legitimate businesses or threaten national security.

Oyerinde called on the Minister of Labour and Employment to stop the wanton and wilful denigration of the industrial relations system.

He said: “With Nigeria sending one of the highest delegations to the ILO conference annually, it is curious that basic industrial relations principles, Conventions, and Recommendations remain poorly applied.”

He called for a resolution through lawful and constructive channels, warning that failure to act decisively could have far-reaching consequences for economic sustainability, job creation and preservation, investment attraction and promotion and national development.

Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said shutting down the oil and gas sector could cripple the nation, describing it as “the lifeblood of the economy” in terms of energy, foreign exchange, and revenue.

He warned against risking national stability for the interests of a few workers, calling PENGASSAN’s action unjustifiable.

“What about those who have invested? What about consumers and other investors in the value chain? Their interests matter too. The union should not be this selfish, inflicting such pain and disruption on the economy,” he said.

Yusuf estimated the economic losses at billions of naira.

“You shut down and disrupt the entire process. By the time you resume, you must start over. The same goes for power stations, which depend on gas. This kind of impunity must not continue just because some people have power over strategic sectors,” he said.

Prof. Chiwuike Uba, a Development economist as well as Governance, and Public Financial Management (PFM) expert, said the dispute is not merely an industrial relations issue; it poses significant risks to economic stability, energy security, governance credibility, and the well-being of millions of Nigerians.

He said: “This crisis is a litmus test of Nigeria’s governance capacity. It examines whether legitimate worker rights and corporate governance can be reconciled with the public interest in essential services.

“Fiscal authority and social policy must be deployed quickly, transparently, and effectively to protect the most vulnerable.

“At the same time, public institutions must uphold the rule of law while preventing a narrow industrial dispute from escalating into a national emergency.

“How Nigeria responds will signal its ability to govern strategic sectors responsibly, protect citizens, and maintain credibility in domestic and international markets.”

He said globally, countries with large-scale refining infrastructure, such as India and the U.S., treat disruptions in national refineries as strategic emergencies, often mobilising contingency imports, stock releases, and immediate negotiations with unions.

He said the government’s handling of the Dangote crisis would thus be watched not only domestically but by investors and development partners assessing institutional reliability.

Also, a lawyer and expert on labour matters, Paul Omoijiade, said Dangote could not prevent his employees from joining the unions.

Noting that the capitalists could not do anything without labour, which is one of the four factors of production, he warned against the implications of trampling on the right of workers to unionise.

Also, a development economist at Governance Professional, Prof. Chiwuike Uba, called for immediate action, noting that industrial disputes should not escalate into a national emergency.

He urged that a neutral tripartite framework, including the Ministry of Labour, NNPCL, Dangote management, PENGASSAN, and an independent arbiter, should negotiate a suspension of supply disruptions while contested dismissals are reviewed.

According to him, contingency supply measures must avert scarcity, including transparent releases of strategic stocks and emergency imports.

October 3, 2025
PENGASSAN fears collapse of deal with Dangote Refinery
- ‘We suspended strike out of respect for Fed Govt institutions’
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has suspended its strike.

The strike was called to protest the sacking of 800 members of the union by the Dangote Refinery and Petroleum. It commenced on Sunday.

The suspension of the strike was announced after two days of negotiation between the parties, brokered by the Federal Government and a conciliator.

Minister of Labour and Employment Muhammad Dingyadi presided over the meeting on the first day before National Security Adviser (NSA) Nuhu Ribadu took over, and the meeting was moved to the Office of the National Security Adviser (ONSA).

The decision compelled Dangote Refinery to reabsorb the sacked workers because it is their right to belong to a union of their choice.

However, the recalled staff members would not be reintegrated into Dangote Refinery but posted to other companies in the Dangote group.

A communique issued at the end of the meeting reads: “Sequel to the notice to stop gas supply to Dangote Petroleum Refinery and withdrawal of services by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the National Security Adviser, the Minister of Labour and Employment, the Minister of Finance and Coordinating Minister of the Economy, the Minister of Budget and Economic Planning, the Minister of State for Labour and Employment, DG DSS, DG NIA, the Minister of State for Petroleum Resources (Gas) represented by Permanent Secretary, Ministry of Petroleum Resources, Permanent Secretary, Federal Ministry of Labour and Employment, Chief Executives of NMDPRA and NUPRC, representatives of NNPCL held conciliation meetings with management of Dangote Group and the President and Secretary General TUC and leadership of PENGASSAN on Monday 29th and Tuesday 30th September, 2025

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“Whereas the leadership of PENGASSAN said that the directives given to stop the supply of gas to Dangote Petroleum and withdrawal of services was in response to the termination of appointment of over Eight Hundred members of PENGASSAN by the management of the Dangote Refinery and Petrochemical Limited, the management of Dangote Refinery and Petrochemical on the other hand, explained the reason for disengagement of the workers was as a result of the ongoing reorganisation in the company.

“After a lengthy discussion, the matter was resolved as follows: The Honourable Minister of Labour informed the meeting that unionisation is a right of workers in accordance with the laws of Nigeria and that this right should be respected.

“After examining the procedure used in the disengagement of workers, the meeting agreed that the management of Dangote Group shall immediately start the process of taking the disengaged staff to other companies within the Dangote Group, with no loss of pay.

“No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN.

“PENGASSAN agreed to start the process of calling off the strike. Both parties agreed to this understanding in good faith.”

PENGASSAN President Festus Osifo told reporters that the union was dissatisfied with the terms of the agreement.

He said: “We are not happy with the terms of the agreement because it did not capture our main demand of recalling the 800 sacked Nigerians.

But out of respect for government institutions, for the National Security Adviser, the Department of State Services (DSS), the Chief Reconciliator of the Federation, and the ministers who worked tirelessly into the early hours of the morning to mediate, we decided to suspend the action.

“However, let me be clear: if Dangote fails to keep its part, we will resume immediately, without any warning.”

The union leader said he doubted the sincerity of the refinery management to follow through on the agreement.

Osifo added: “We know that Dangote does not play by the rules or respect agreements. We believe and suspect that some of the promises extracted during the negotiations will not be honoured. But because we respect due process and institutions of government, we will give them the benefit of the doubt.”

The conciliation brokered by the Minister of Labour and Employment, Muhammad Dingyadi, was attended by high-ranking government officials, security chiefs, labour leaders, and industry regulators.

Among them were the NSA; the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Minister of Budget and Economic Planning, Senator Abubakar Atiku Badudu; the Minister of State for Labour and Employment, Nkeiruka C. Onyejeocha; the Director-General of the Department of State Services (DSS), Mr. Adeola Oluwatosin Ajayi; the Director-General of the National Intelligence Agency (NIA), Ambassador Mohammed Mohammed; the Permanent Secretary in the Ministry of Petroleum Resources, representing the Minister of State for Petroleum Resources (Gas); as well as the Permanent Secretary in the Federal Ministry of Labour and Employment.

Also present were the Chief Executives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), alongside representatives of the Nigerian National Petroleum Company Limited (NNPCL), the leadership of the Trade Union Congress (TUC), and the President and Secretary-General of PENGASSAN.
October 2, 2025
Suicidal vs executioner

Just as well, some breakthrough: in the crunch between the gutsy suicidal and the ruthless executioner, as the Yoruba would call it.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), plucky union, just faced down Dangote Refinery and Petrochemicals, biggest single-tranche crude oil refinery in the world and employers that take no prisoners! It wasn’t pretty!

Who blinked first? At what cost to the delicate economy? Even with the truce, what impact on inflation, which trend-down, for months now, has signified a cool-off of the economy, pending a healthier re-take-off, following very painful reforms?

Will soaring energy costs return the economy to higher inflation, since petrol and diesel remain core to fuelling and powering the economy?

Has the shock been arrested before real harm was done? Kudos to the Federal Government for moving in fast, appealing to the good sense of both combatants!

Still, the fundamentals are awry. Local refining couldn’t have drawn a stormier re-entry. The old is giving way to the new. But the new not yet able to kick out stock, old practices! That’s the ugly lacuna playing out.

PENGASSAN and NUPENG, beyond their unionist do-gooding, stand accused of strong-arm tactics. That suggests many of their screeches are fired more by illicit cream-offs, than by members’ protection and welfare.

That intera-union cabal, PENGASSAN foes love to allege, is so powerful that even their members are unsure which is worse: the parasitic union or the overarching employer. It’s the classic choice between the red devil and the blue sea!

On Dangote. Lovers of its refinery, touting it a nationalistic downstream rescue, fend off the budding monopolist charge, which its foes hang on its neck. Fair enough.

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Still, like Microsoft’s Bill Gates, not even the most fanatical of Dangote’s fans would deny it rather loves to compete — and win! Without robust anti-trust checks — the same tools the US government used to checkmate Microsoft — petroleum downstream monopoly might just blight the market. That’s hardly desirable.

In other words, aside tackling this immediate clash, the Federal Government must put in place doughty anti-trust regulations, for the strategic wellness of that oil sub-sector. But robust anti-trust checks begin with diversifying the local supply of refined products. So, as many refineries as possible should be aided to fight for market share against Dangote Refinery.

But back to the present huff. Both PENGASSAN and Dangote should learn to always tow the middle line. Inasmuch as PENGASSAN blockage of crude oil and gas supply to Dangote Refinery was extreme — indeed, near-anarchic — the refinery’s sack of 800 workers, under the guise of “reorganization”, is both suspect and the height of corporate sophistry.

While PENGASSAN should resist the urge to always go for broke, Dangote should be wary of throwing around its weight as the dominant — nay, near-sole — local crude refiner.

The Federal Government should commit all local crude oil refining players to healthy compromises. Otherwise, energy security, a critical gain of its painful reforms, would go up in smoke!

October 2, 2025
JUST IN: PENGASSAN suspends strike, urges Dangote Group to implement agreement

…says strike suspension out of respect to govt

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has suspended its strike against Dangote Refinery and Petrochemicals following a new agreement brokered by the National Security Adviser (NSA), Nuhu Ribadu.

Speaking at a press briefing in Abuja on Wednesday, PENGASSAN President, Comrade Festus Osifo, said the decision was taken out of respect for the federal government.

He, however, expressed dissatisfaction with the terms of the agreement, noting that it did not address the union’s primary demand, the immediate reinstatement of over 800 Nigerian workers allegedly sacked by the refinery.

Osifo warned that the union would not hesitate to resume the strike without notice if the Dangote management fails to honour its commitments under the agreement.

Osifo said, “We are not happy with the terms of the agreement because it did not capture our main demand of recalling the 800 sacked Nigerians. But out of respect for government institutions, for the National Security Adviser, the Department of State Services (DSS); the Chief Reconciliator of the Federation, and ministers who worked tirelessly into the early hours of the morning to mediate, we decided to suspend the action.

“However, let me be clear: if Dangote fails to keep its part, we will resume immediately, without any warning.”

The union leader expressed deep reservations about the sincerity of the refinery management, saying PENGASSAN has “mutual suspicion” that Dangote will attempt to renege on the deal.

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Osifo added, “We know that Dangote does not play by the rules or respect agreements. We believe and suspect that some of the promises extracted during the negotiations will not be honoured. But because we respect due process and institutions of government, we will give them the benefit of the doubt. Yet, any breach will be met with severe and immediate response.”

Osifo dismissed claims that PENGASSAN was pushing for the reinstatement of the 800 sacked workers to secure check-off dues.

According to him, the salaries of the affected workers are meagre compared to the earnings of PENGASSAN members in other multinational oil companies, making such accusations baseless.

He added, “So we clearly ask, is it because of check-off dues that PENGASSAN went on strike? The salaries being paid to these 800 members, if you add them all together, are less than what 20 of our members earn in companies like Chevron, TotalEnergies, or ExxonMobil. Their check-off dues are not even up to the check-off dues of our least-paid members elsewhere. So why should we be chasing this because of dues?

“It is actually about the freedom of association and the welfare of our members, because when we enter organisations, we improve conditions of service, and that is why workers subscribe to us.”

Osifo noted that PENGASSAN has a long record of defending workers’ rights without stifling the companies where its members operate, citing the example of Shell, TotalEnergies, and ExxonMobil, which have thrived despite having thousands of PENGASSAN members.

“At one time, Shell had over 10,000 of our members, and they invested more than $200 billion in Nigeria. Did we kill Shell? Instead, we assisted Shell, TotalEnergies, and ExxonMobil to grow. We are not out to kill Dangote Refinery, which has barely invested $20 billion. That narrative is false,” he said.

He stressed that the oil and gas workforce has carried the burden of Nigeria’s economy for decades, providing over 90 percent of the nation’s foreign exchange earnings.

“We know who we are and what we stand for. We are patriots who love this country more than any single individual, and that is why, despite our reservations, we chose to suspend this strike in deference to government efforts,” Osifo added.

While thanking the government officials and agencies that intervened in the dispute, he reiterated PENGASSAN’s vigilance.

“We will be monitoring closely. Any slip, any breach, any part of this agreement that is not kept, we will not issue further notice. We will not give any warning. We will resume the suspended industrial action immediately. That is our resolution,” he warned.

Osifo noted that PENGASSAN’s struggle was not against progress but against injustice, and that the union will remain steadfast in defending the rights and welfare of its members, no matter whose interest is at stake.

October 1, 2025
Unionism, hypocrisy and economic development
- By Enough is enough
Sir: The recent war declared by Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers, (NUPENG) on Dangote Refinery for whatever reasons is uncalled for. It is hypocritical, unjustifiable and shameful.

For over 30 years, Nigerians have suffered perennial fuel scarcity and incessant price increases. Yet, there is no record of NUPENG and PENGASSAN’s intervention to bring lasting succour to Nigerians. Even at the time that the government of President Muhammadu Buhari encouraged investors to establish modular refineries, what did NUPENG and PENGASSAN do to encourage the establishment of many refineries to bring relief to Nigerians?

What was the role of NUPENG and PENGASSAN all the years that the fortunes of the Warri, Port Harcourt and Kaduna refineries have been nosediving? Which workable action plan did they present and discuss with the governments at the federal and state levels to make petroleum products and job opportunities available abundantly?

There have been losses of thousands of lives and properties on Nigeria roads caused by road accidents involving the drivers of fuel tankers. What has NUPENG and PENGASSAN done with the monies they have been collecting from the tanker owners to reduce or prevent the road crashes?

Because of the failure of NUPENG and PENGASSAN, the National Assembly had to mandate the Federal Ministry of Transportation to bring the stakeholders together, including NUPENG and PENGASSAN to solve the problems of road crashes involving fuel tankers and other articulated vehicles. Yet, the stickers of NUPENG, NLC, NURTW, RETEAN, and NARTO adorn the tankers and other trucks without meaningful concerns about the driver road worthiness and the vehicle road worthiness.

What NUPENG, PENGASSAN and their allies are doing to Dangote Refinery will surely discourage more investors from going into petroleum product refining, thereby blocking the channel for more job creation while also reducing the competition that could bring down the prices for the benefit of the masses they claim to be fighting for.

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Ironically, the Nigeria Labour Congress (NLC) is also mobilising for nationwide strike against Dangote Refinery. Will this not amount to economic sabotage?? Will the NLC strike create more job opportunities?

NLC which is now more active in the affairs of the Labour Party has suddenly woken up to fight against Dangote Refinery. What was the role of NLC when the importation of cement was draining the foreign exchange of Nigeria? As soon as the likes of Dangote and BUA stepped in to produce cement locally, NLC also stepped in to collect union dues. If Dangote and BUA cement were muzzled the way the unions are trying to do to Dangote Refinery now, what would have been the situation today? The new investors in cement production would not have been encouraged to invest.

There have been crises of public transportation in the Federal Capital Territory (FCT) for many years now. The federal government tried to intervene with hundreds of buses but the buses were grounded in less than three years because of mismanagement by NLC. Some of the buses are presently in the NLC yard on Shetima Munguno Crescent at Utako, Abuja.

If NLC, NUPENG, PENGASSAN and other unions cannot successfully run businesses that impact positively on the Nigerian workers they pretend to cherish so much, they should stop taking anti-economic development actions which will inflict more hardship on the masses.

The unions have been amassing trillions of Naira annually without meaningful investments which can better the lives of the people they claim to be fighting for. Many Nigeria workers suffer disabilities and other hardships in their workplaces while the leaderships of the same unions they pay money to every month turn their faces to the other side. Who is deceiving who?

It is time for the government to review the Labour Laws. If what NUPENG, PENGASSAN, NLC, transport unions, and other unions are doing in Nigeria is what happens in Britain, America, China and other developed countries, their economies would have crumbled.

•Enough is enough!

Jide Owatunmise,
October 1, 2025
Will Nigeria kill or save its largest private industrial project?
- By Mohammed Basah
Sir: The Trade Disputes Act (TDA) sets out exactly what must happen before workers in essential services may lawfully cease work. In particular, Section 18 demands that parties must seek to resolve disputes through negotiation, mediation, and arbitration before any strike or stoppage. Strikes — or the shutting of valves — in essential sectors must follow that strict path. Then, Section 41 of the TDA mandates that any worker in essential service who stops work must give fifteen days’ notice to employer and government, unless they can prove they were unaware that closing operations would substantially deprive the community of an essential service. (TDA Section 41(1)).

These rules exist for good reason: a refinery is not like a picket line in hospitality. Its operations connect to national supply chains, foreign exchange balances, fuel distribution, and ultimately, the stability of the naira. When PENGASSAN ordered the halt of crude and gas supply to Dangote — without any public record that the 15-day notice was given or that all mediation/arbitration steps were exhausted — it risked acting as a rogue actor above the law.

Indeed, recent court injunctions restraining union leaders from blocking supplies suggest that the judiciary already finds merit in the claim that PENGASSAN’s actions skirt legal boundaries. Yet in public statements, union leaders justify the shutdowns as necessary pushback against alleged mass dismissals of unionised workers and what they see as a betrayal of promise. On their side, Dangote management insists it must preserve operational integrity, guard against sabotage, and protect shareholder capital in the midst of global margins and foreign exchange volatility.

Both sides carry legitimate concerns. Workers deserve fair treatment and enforcement of union rights; investors demand certainty and rule of law. But in this conflict, PENGASSAN’s approach is legally untenable. The law does not permit unilateral shutdowns in essential services while alternative dispute resolution is ongoing, and while notice obligations remain unmet.

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More than that, this refinery is not just a factory: it is Nigeria’s industrial reputation on the line. We must force ourselves to see it as a shared national asset. For years, the country has imported refined petroleum despite exporting crude — bleeding forex for lack of domestic refining capacity. Dangote built one of the most ambitious refineries on the continent precisely to reverse that paradox. If this refinery fails now, the message will be chilling: even when we build, we cannot protect.

Yes, the union is powerful. Yes, the grievances may be real. But rule of law is higher. If the law means nothing, then industrial peace means nothing. If unions may break the rules when pressured, management might act with impunity when threatened, and governance systems unravel.

We cannot accept a system where a union, by decree, shuts down oil production without due process. That is tantamount to running a nation hostage. The president, as commander-in-chief and guardian of stability, must intervene decisively. He must compel all parties to resume fair process and stop any action that threatens national supply or economic order. He must declare that no actor, whether corporate or union, is above legal obligation.

Nigeria owes itself (and Africa) a demonstration that we can build and manage projects of scale in a lawful, disciplined way. Dangote Refinery represents one of our clearest chances. It is too valuable to collapse under dispute tactics. The refinery must not die because we treat laws as optional.

We must demand: follow the protocol. Respect workers. Protect infrastructure. Build trust and enforce accountability. Only then will Nigeria prove that its industrial dreams are not built on fumes and fantasies, but on integrity, process, and shared resolve.

•Mohammed Basah,

<mobasah@gmail.com>
October 1, 2025
NSA steps into Dangote, PENGASSAN dispute
- Edun: strike will hurt fragile economy
The National Security Adviser (NSA) Mallam Nuhu Ribadu last night urged Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and other labour unions not to hurt the economy at a the government is making progress to redirect it time.

The NSA made the remark after stepping into the row between Dangote Refinery and PENGASSAN

The second day of the peace meeting initiated by the government was moved to the Office of National Security Adviser (ONSA) from the ministry of Labor and government.

“They have not reached any conclusion yet but the NSA asked PENGASSAN not to hurt the economy,” a source said last night.

Ribdau held talks with Dangote Group Chairman Aliko Dangote and representatives of oil workers’ union as part of steps to avoid a total shutdown of the oil and gas sector.

At the meeting were the Minister of Finance and Coordinating Minister for the Economy Mr. Wale Edun; Minister of Labour and Employment Mohammed Dingyadi; Minister of State for Labour and Employment Mrs. Nkeiruka Onyejeocha; PENGASSAN President Festus Osifo; Secretary of the union Lumumba Ighotemu and top government officials.

The meeting, which was still ongoing as of press time at 11.24pm, was holding in the Office of the NSA (ONSA) in Abuja.

The Upstream and the Downstream of the oil sector are now feeling the impact of the lingering feud between the refinery and PENGASSAN.

A source, who spoke with our correspondent, said: “There is an ongoing marathon meeting between the NSA and other key stakeholders, especially Dangote and PENGASSAN leaders.

“Ribadu, who is the chairman of the Energy Security of the government, opted to intervene following the continuous spread of the strike action by PENGASSAN.

Edun warned that the ongoing strike poses a major threat to the nation’s fragile economy. He said government was determined to limit the impact of the industrial action, which followed the dismissal of 800 workers by Dangote Refinery and Petrochemicals.

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Edun spoke after a nine-hour meeting convened by the Minister of Labour and Employment, Muhammad Dingyadi, stressing that resolving the dispute was urgent to keep country’s economy on track.

According to him, the strike was threatening critical supply chains in gas and crude oil, which are essential inputs for industrial production.

“What is utmost in the minds of everybody- the public, the government, investors, and economic actors generally- is that we need to limit the danger of this action to the economy. We need to resolve it and get workers back to work. We need gas flowing, we need crude flowing, which is critical to where the economy is right now,” Edun said.

He added that government remained optimistic that a resolution would be reached when talks reconvene today, noting that sustaining momentum in economic reforms required urgent restoration of operations at the refinery. “We don’t want this momentum broken. That is why we spent nine hours trying to resolve the issue. We are hopeful that later today we can break the deadlock and put this behind us so the Nigerian economy can move forward,” the minister said.

The Nigeria Employers’ Consultative Association (NECA) has expressed concern over the ongoing action by PENGASSAN, warming that it was tantamount to self-help and economic sabotage.

It warned that coercing those not interested in a strike or disrupting the operations of businesses not party to a dispute is unacceptable and against global labour practices.

In a statement, NECA’s Director-General, Adewale-Smatt Oyerinde, stressed that while trade unions have the legitimate right to embark on industrial action, such rights must be exercised responsibly and within the bounds of the law.

Oyerinde noted that Nigeria has statutory institutions like the Industrial Arbitration Panel (IAP) and the National Industrial Court (NICN) to resolve labour disputes. According to him, resorting to self-help or treating these institutions with disdain would undermine the country’s industrial relations system and threaten economic survival.

He reaffirmed NECA’s commitment to upholding global labour standards in line with ILO Conventions 87 and 98, stressing that protections for union officials do not cover sabotage, coercion, or actions that endanger enterprises and national security.

While acknowledging workers’ rights, he maintained that such rights cannot override employers’ rights to manage investments or jeopardize enterprise sustainability.

The NECA DG urged the Minister of Labour and Employment to act decisively to stop the “wanton denigration” of Nigeria’s industrial relations system. He called for the dispute to be resolved through lawful channels, warning that failure to intervene could damage economic sustainability, job creation, investment attraction, and national development.

Works Minister to PENGASSAN: prioritise national interest

Appealing to PENGASSAN to put national interest above union grievances, Works Minister, David Umahi, warned that the strike action could derail the country’s economic recovery.

Umahi who spoke in Lagos while inspecting the Lagos-Calabar Coastal Highway, stressed that stability in the oil and gas sector was crucial to sustaining development.

Petrol scarcity hits Abuja

In Abuja, petrol scarcity has resurfaced as most retail outlets remained shut while black marketers sold the product at inflated prices. Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Abubakar Maigandi, said the disruption of supply from Dangote Refinery was the immediate cause.

PENGASSAN members continued their blockade of key regulatory agencies in Abuja, including the NNPCL, NUPRC and NMDPRA, despite a subsisting court order.

Pockets of long queues were observed at some gas stations in Lagos with private depots reported to have hiked pump prices to N980 per litre. Other oil sector groups, including NOGASA and PETROAN, appealed to government to quickly intervene, warning that the situation could spiral into a nationwide shortage.

CORAN begs govt to avert oil sector collapse

Reacting to the development, the Crude Oil Refineries Owners Association of Nigeria (CORAN) urged the Federal Government to urgently intervene to prevent looming collapse of the oil sector if the crises persist.

In a statement, the association stressed that private refineries had invested heavily to reduce dependence on imports, create jobs, and conserve foreign exchange. However, it said recurring disruptions, regulatory delays, and vested interests were threatening their survival.

“Private refiners cannot survive in a hostile business environment where supply is used as leverage to stifle growth. Government must act impartially and decisively to protect operators and guarantee uninterrupted access to feedstock,” CORAN said, calling for a binding framework that secures crude supply and restores investor confidence.

NISO blames power generation shortfall on gas disruption

Nigerian Independent System Operator (NISO) yesterday blamed the dip in electricity generation on the disruption of gas supply.

It allocated 3,656MW to the 11 Distribution Companies (DisCos) as at 15:39 hours yesterday.

The NISO said at 15:00 hours, 14 of the 26 generation Companies GenCos produced 3,798.86MW.

But its management, which made the issue of disruption known in a press statement, said it was due to the industrial actions of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) within the gas supply chain.

In s public notice titled: “Generation curtailment due to gas supply disruptions”, it said: “The Nigerian Independent System Operator (NISO) wishes to notify the public of recent major generation shortfalls on the National Grid, caused by industrial actions of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) within the gas supply chain.”

NISO further noted that the disruptions triggered widespread gas shortages, reducing available generation from over 4,300 MW in the early hours of Sunday, 28th September 2025, to about 3,200 MW at the lowest point.

In response, NISO said it has promptly deployed contingency measures to preserve the stability, security, and reliability of the National Grid.

According to the statement, key interventions include:

Hydropower Optimization: Strategic ramp-ups from major hydro stations, contributing over 400 MW of additional output to cushion the shortfall from gas-fired plants.
October 1, 2025