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BREAKING: Oil Workers’ Union PENGASSAN Rejects Claims of Ending Strike at Dangote Refinery

Godwin Asiegbu by Godwin Asiegbu
October 2, 2025
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BREAKING: Oil Workers’ Union PENGASSAN Rejects Claims of Ending Strike at Dangote Refinery
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PENGASSAN denies signing communiqué ending strike against Dangote Refinery, insists workers’ welfare remains central as talks with stakeholders continue.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has moved swiftly to correct what it described as a false impression surrounding the resolution of its recent strike against the Dangote Refinery. Contrary to reports in circulation, the association stressed that it never signed the communiqué that allegedly brought the industrial action to an end.

In a press release issued on Thursday, PENGASSAN clarified that while discussions with relevant stakeholders are ongoing, it has not officially endorsed any agreement regarding the concerns that triggered the strike. The union emphasized that the welfare and rights of its members remain the top priority, and any final decision will be communicated through official union channels.

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Background to the StrikeThe strike action, which disrupted operations at the multi-billion-dollar Dangote Refinery, was primarily driven by what PENGASSAN described as poor welfare conditions and unresolved labor issues affecting its members working within the project.The refinery, located in Lekki, Lagos, is Africa’s largest single-train facility and is widely regarded as a game changer for Nigeria’s energy sector. Expected to reduce the country’s dependency on fuel imports, the refinery is central to the federal government’s plans to achieve self-sufficiency in refined petroleum products.However, tension between the refinery management and labor unions escalated when concerns about worker rights, pay structures, and conditions of service remained unresolved. This led to PENGASSAN declaring a strike, which immediately raised fears of disruptions in Nigeria’s fragile fuel supply chain.

PENGASSAN’s Position

In its latest clarification, PENGASSAN insisted that it has not backed down on its demands. The association urged the public and media outlets to disregard reports suggesting that it had signed a settlement communiqué.“Any document or communiqué claiming to represent PENGASSAN’s endorsement of a strike resolution is misleading and should not be considered valid,” the statement read in part.The union leadership further underscored that it will not compromise on matters affecting the welfare and dignity of its members, reiterating that any resolution must first undergo due consultation and be formally ratified.

Dangote Refinery’s Response

While Dangote Group has remained cautious in its official comments, sources within the refinery indicate that management is eager to resolve the labor dispute swiftly to prevent further delays in its operational targets.

The refinery, which is designed to process 650,000 barrels of crude oil per day, is considered a crucial asset in Nigeria’s quest to end recurring fuel scarcity. Analysts warn that prolonged labor disputes could impact its output and delay the full-scale production of petrol, diesel, and aviation fuel.

Industry Reactions

The clarification by PENGASSAN has drawn mixed reactions within Nigeria’s oil and gas sector. Some stakeholders commended the union for maintaining transparency, while others urged both parties to prioritize dialogue over confrontation.

Energy policy experts argue that with the refinery poised to influence fuel prices and energy stability in Nigeria, swift resolution of the labor conflict is critical. A prolonged standoff, they warn, could weaken investor confidence in Nigeria’s refining sector, which has long struggled with inefficiency and under-capacity.

What Next for Workers and Stakeholders?

For now, PENGASSAN has maintained its stance on prioritizing workers’ welfare while engaging government agencies, refinery management, and other stakeholders in talks. The union urged its members to remain united and vigilant, emphasizing that only official communications from its leadership should be considered authentic.

Labor observers suggest that the next steps will involve mediation between the Ministry of Labour, Dangote Refinery, and union representatives to reach a fair agreement. Given the refinery’s strategic importance, the federal government is expected to play an active role in facilitating a resolution.

Conclusion

The unfolding dispute between PENGASSAN and Dangote Refinery highlights the delicate balance between industrial development and labor rights in Nigeria’s oil and gas sector. While the Dangote Refinery promises to transform Nigeria into a regional refining hub, its success will depend not just on infrastructure, but also on ensuring fair treatment of the workforce powering the project.

Until a genuine agreement is reached, PENGASSAN has made it clear: it did not sign any communiqué ending its strike. Stakeholders, therefore, await further negotiations that will hopefully bring a lasting solution to the labor impasse without undermining the refinery’s role in stabilizing Nigeria’s energy supply.

Tags: Dangote RefineryLabour DisputeNigeria Oil and GasPENGASSANWorkers’ Welfare
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