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The Dangote Refinery–PENGASSAN dispute: Between labour freedom and national interest

by The Nigeria Standard
October 8, 2025
in Editorials
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The Dangote Refinery–PENGASSAN dispute: Between labour freedom and national interest
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EDITORIAL

The recent industrial dispute between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) once again pushed Nigeria’s oil sector into the unsettling spotlight of national anxiety. What began as a seemingly routine disagreement over workers’ rights and unionisation rapidly escalated into a crisis with far-reaching implications. It was capable of disrupting fuel supply, destabilising foreign exchange markets and deepening the economic hardship already faced by millions of Nigerians.

Yet beneath the surface of that industrial clash lies a more profound national question: is this simply another labour-management dispute or a storm threatening the symbol of Nigeria’s long-awaited industrial independence? The Dangote Refinery (celebrated as the crown jewel of Africa’s industrial awakening), represents far more than a private business venture. It embodies the country’s collective hope of finally refining its crude oil domestically, thereby freeing itself from the humiliating dependence on imported petroleum products and the attendant socio-economic and political consequences.

For decades, the paradox of Africa’s top oil producer exporting crude oil and importing refined fuel stood as a painful metaphor for national dysfunction. The Dangote Refinery was expected to end this embarrassment and restore pride to the nation’s oil industry. It is, therefore, unsurprising that any controversy surrounding it—especially one involving threats of shutdowns and protests—elicits widespread public unease.

Former Nigeria Labour Congress (NLC) President, Adams Oshiomhole, captured this sentiment aptly when he criticised PENGASSAN’s approach, describing the union’s move to paralyse operations across the petroleum value chain as “ill-considered.” He cautioned that in the pursuit of justice, labour must ensure that its tools of struggle do not inflict harm on innocent citizens or stifle the very industries they aim to defend.

“In pursuing war, you have to recognise that the tools you deploy must not hurt innocent people—like the tomato sellers who cannot move their goods because there is a quarrel between one refinery and one union,” Oshiomhole warned. “An employer has to exist, mature and be strong enough to guarantee good-paying jobs. If you cripple a business before it finds its feet, you destroy the jobs you claim to protect.”

No doubt, his remarks underscore a fundamental truth: while the right of workers to unionise remains sacrosanct in any democracy, such rights must coexist with the broader national interest. Industrial action that endangers energy security, which is the lifeblood of Nigeria’s economy, risks becoming self-defeating.

The intervention by the Petroleum Tanker Drivers’ branch of NUPENG further highlights the seriousness of the situation. Their call for restraint and their reminder that “union politics” must not undermine a refinery regarded as a national strategic asset reflect a growing fear that if labour disputes are mishandled, they could jeopardise a project crucial to Nigeria’s economic stability.
Furthermore, the timing of this crisis could not be worse. Nigeria is currently grappling with dwindling foreign reserves, currency instability, high inflation and mounting debt. That is why a public confrontation within its most critical revenue sector sends the wrong message to both domestic and international investors, many of whom already view Nigeria as a high-risk environment due to policy inconsistency and industrial unrest.

Beyond the economic implications lies a deeper concern—public trust. Nigerians were assured that the Dangote Refinery would end decades of recurring fuel scarcity and offer relief to households burdened by subsidy removal and soaring living costs. If this project becomes mired in the same dysfunction, vested interests and power struggles that destroyed state-owned refineries, the resulting disappointment could quickly morph into widespread anger, with grave political and social consequences.

In essence, therefore, the Dangote–PENGASSAN impasse transcended the issue of union rights. It represented a critical test of Nigeria’s capacity to reconcile labour freedom with the national interest, and to balance private ambition with public good. Thankfully, the Federal Government’s prompt intervention to mediate between both sides—without trampling on workers’ rights or discouraging private investment—was a welcome step in the right direction as it has brought the situation under control.

That said, the Dangote Refinery must not be allowed to degenerate into another casualty of Nigeria’s chronic cycle of mistrust between labour and government. It must remain a beacon of industrial renewal—a testament to the possibility of national transformation—not yet another symbol of promise betrayed.

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