THE Federal Government has announced that workers recently disengaged by the Dangote Petroleum Refinery will be redeployed to other subsidiaries within the Dangote Group.
This follows the resolution of a protracted industrial dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The Minister of Labour and Employment, Mohammed Maigari Dingyadi, disclosed this in Abuja on Wednesday, October 1, stating that the affected workers would retain their salaries and benefits despite the redeployment.
“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 group, with no loss of pay. No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN,” Dingyadi said.
According to him, the truce followed a compromise by both parties, with PENGASSAN agreeing to suspend its nationwide strike action. He stressed that the right to unionise was guaranteed under Nigerian law and should be respected.
He further explained that both sides had reached a compromise, noting that “PENGASSAN agreed to start the process of calling off the strike. Both parties agreed to this understanding in good faith.”
“No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN,” the minister stated.
The development comes after weeks of confrontation between the refinery’s management and PENGASSAN, which accused the company of arbitrarily transferring and dismissing unionised staff while replacing them with foreign nationals. The refinery denied the allegations, insisting the restructuring was driven by operational needs.
The standoff escalated into industrial action after PENGASSAN directed its members to cut gas and crude oil supply to the refinery, a move that triggered widespread disruptions. By September 30, the Nigerian Independent System Operator confirmed that the strike had forced several gas-powered plants to shut down, resulting in a reduction of national electricity generation by approximately 1,100 megawatts and leaving major cities, including Lagos and Abuja, without power.
The House of Representatives had also intervened at the height of the crisis, mandating its Committee on Petroleum Resources (Downstream) to mediate. The committee urged PENGASSAN to resume supplies, warning that the dispute threatened the downstream sector, discouraged investors, and could worsen fuel scarcity.
During this period, the Manufacturers Association of Nigeria (MAN) criticised the union for grounding economic activity, describing the refinery as a critical $20 billion national asset that should not be paralysed by labour action.
The ICIR earlier reported that tension had been brewing since September, when PENGASSAN alleged that more than 800 Nigerian employees were unlawfully dismissed after workers unionised. The union stated that the dismissals coincided with the submission of its first membership list to management, a claim that the refinery rejected.
Previous efforts by the Federal Government to broker peace had ended in deadlock, with both sides holding firm on their positions. PENGASSAN insisted that its members would not resume work until alleged anti-labour practices were reversed, while the refinery maintained its right to restructure in line with global industry standards.
At Wednesday’s meeting, however, both parties reached common ground under government mediation. The Minister expressed optimism that the resolution would restore industrial peace in the oil and gas sector, which is central to Nigeria’s economic stability.
“The refinery is a key national asset, and industrial harmony is essential to enable it to deliver on its promise of boosting domestic refining capacity and reducing reliance on imported petroleum products,” Dingyadi said.
A reporter with the ICIR
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