Nigeria’s multi-billion-dollar Dangote Petroleum Refinery has found itself at the centre of a heated standoff with oil workers’ unions, even as it resumed domestic petrol sales in naira after a brief suspension.
The controversy erupted when the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) directed its members in oil companies to halt crude oil and gas supply to the facility. The union accused the refinery of dismissing hundreds of Nigerian staff and replacing them with expatriates, a move it described as a breach of fair labour practices.
Management of the refinery swiftly condemned the directive, describing it as unlawful and damaging to national energy security. The company argued that no legal framework supports the unions’ attempt to interfere with existing supply agreements, warning that such action could amount to economic sabotage.
At the same time, the refinery had earlier indicated that it would stop selling petrol in naira from September 28, citing limitations under the crude-for-naira programme. That announcement stirred widespread concern among marketers and consumers. However, following the intervention of the federal government’s Naira-for-Crude Transaction Committee, the company reversed course and confirmed that sales in naira had resumed. Customers were encouraged to continue placing orders in local currency.
The House of Representatives has since weighed in, criticizing the shutdown order issued by the unions. Lawmakers urged PENGASSAN to suspend its directive and instead engage in dialogue with the refinery, regulators and other stakeholders, stressing that the dispute, if not carefully managed, could disrupt fuel supplies and discourage investment in Nigeria’s energy sector.
With operations back in motion but tensions unresolved, attention has now shifted to how swiftly government mediators and both parties can find common ground. The outcome is expected to have far-reaching implications for the country’s petroleum market and its efforts to reduce dependence on imported fuel.
