The Federal Government has successfully mediated the dispute between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), ending two days of tense negotiations.
In a statement released early Wednesday, Minister of Labour and Employment, Dr. Mohammed Maigari Dingyadi, confirmed that the parties reached a settlement after extended dialogue.
According to him, the resolutions included recognition of workers’ right to unionise under Nigerian law, a commitment by Dangote Group to redeploy the disengaged workers to other subsidiaries without pay cuts, and assurances that no staff would face reprisals for participating in the standoff.
“After examining the procedure used in the disengagement of workers, the meeting agreed that the management of Dangote Group shall immediately begin the process of redeploying 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,” the statement read.
The breakthrough followed marathon meetings at the Office of the National Security Adviser, which began Monday but initially ended in deadlock before reconvening on Tuesday and stretching late into Wednesday morning.
Present at the sessions were top government officials, including National Security Adviser Nuhu Ribadu, Finance Minister Wale Edun, Budget and Economic Planning Minister Atiku Bagudu, State Minister for Labour Nkeiruka Onyejeocha, DSS Director-General Adeola Ajayi, and NIA Director-General Mohammed Mohammed.
The impasse was triggered by allegations from PENGASSAN that the refinery had unfairly dismissed union members and replaced them with foreign workers claims strongly denied by management.
The government stepped in amid fears that the escalating crisis could undermine energy security and further strain the economy.
Dangote-PENGASSAN saga: How it started
On September 26, this paper reported that the management of Dangote Petroleum Refinery terminated the employment of all its Nigerian staff, citing an internal “reorganisation” of the plant, less than 24 hours after the majority of its workforce joined the PENGASSAN.
A memo dated 25 September 2025 and reportedly signed by Femi Adekunle, the Chief General Manager of Human Asset Management, went viral.
In the document, the company cited a “total reorganisation” of the plant as the reason for the mass dismissal, attributing the decision to “reported cases of sabotage in different units of the refinery”.
The notice instructed affected employees to return all company property to their line managers and to obtain official exit clearance.
PENGASSAN however confirmed the sack of the workers and vowed they would be called back.
It directed its members to immediately cease the supply of gas and crude oil to the Dangote Petroleum Refinery
The directive was issued in a formal letter signed by the union’s General Secretary, Comrade Lumumba Ighotemu Okugbawa.
The Dangote refinery last Friday announced it will no longer sell petrol in naira, a move that has unsettled fuel marketers and reignited concerns over possible hikes in pump prices and forex pressures. However, the decision was later reversed within 24hrs.
The Trade Union Congress (TUC) of Nigeria last week also issued a nationwide strike notice to its members in response to what it described as “anti-worker” policies currently being implemented by the management of the Dangote Petroleum Refinery as PENGASSAN commenced strike action on Monday, putting the nation in total blackout.
However, Justice Emmanuel Danjuma Subilim of the National Industrial Court, Abuja, issued a temporary restraining order against the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), barring the union from carrying out its planned industrial action against the Dangote Petroleum Refinery.
The order, granted on Monday following an ex-parte application by Dangote Refinery, specifically prevents PENGASSAN and its affiliates from halting the supply of crude oil and gas to the refinery or taking any action that could obstruct its operations, including road blockages or shutdowns.
Also named in the suit are the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The Nigeria Labour Congress, NLC, had strategised plans to mobilise for a nationwide strike over alleged “deliberate anti-worker crusade” by the management of the refinery.
The directive to start mobilising was contained in an internal memo signed by NLC President, Joe Ajaero, on Monday.
In the memo, the Ajaero said the time for “pleading and fruitless dialogue” with the conglomerate was over and that the moment had come for “decisive, collective action.”
