The Dangote Group has announced plans to redeploy staff earlier disengaged from its refinery operations, following the resolution of its dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The move comes after weeks of tension between the company and the oil workers’ union, which had raised concerns over job losses, welfare issues, and labour practices at the $20 billion Dangote Refinery in Ibeju-Lekki, Lagos.
In a joint statement issued on Tuesday night, both Dangote Group and PENGASSAN confirmed that the matter had been resolved amicably after a series of negotiations facilitated by the Federal Ministry of Labour and Employment.
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“The Dangote Group has agreed to redeploy and reintegrate staff earlier disengaged from the refinery operations,” the statement read. “Both parties have reached an understanding to strengthen industrial harmony, ensure fair labour practices, and guarantee uninterrupted operations at the refinery.”
PENGASSAN, one of Nigeria’s most influential oil and gas unions, had earlier threatened nationwide industrial action if the grievances of its members were not addressed. The standoff had sparked fears of disruption to Nigeria’s refining ambitions at a time when the country is banking on the 650,000 barrels-per-day Dangote Refinery to reduce fuel imports and stabilise the downstream oil sector.
PENGASSAN President, Festus Osifo, hailed the resolution as a “victory for dialogue” and commended the intervention of the Labour Ministry. “Our primary demand was that no Nigerian worker should be unfairly treated. We are satisfied that the Dangote Group has shown commitment to fair treatment and job security for our members,” he said.
On its part, the Dangote Group said the decision to recall staff was in line with its philosophy of prioritising Nigerian talent in the operation of the world-class facility. A senior company official noted that while the refinery initially experienced “operational restructuring,” the management is now focused on stabilising its workforce and ensuring smooth operations.
Industry watchers say the agreement eases one of the key challenges facing the refinery since its commissioning in 2023. The plant, regarded as Africa’s largest single-train refinery, has been touted as a game-changer for Nigeria’s economy, capable of meeting local demand for petrol, diesel, aviation fuel, and other refined products while exporting the surplus.
The Ministry of Labour described the resolution as an example of constructive social dialogue. Minister of Labour, Nkeiruka Onyejeocha, who chaired the negotiations, urged both the company and the union to continue engaging in good faith to prevent future disputes.
Analysts believe the truce will calm fears of labour unrest in Nigeria’s oil and gas sector and restore confidence in the refinery’s operations. “This refinery is too strategic to Nigeria’s economic future for labour disputes to destabilise it,” said energy analyst, Hassan Idris.
With the recall of disengaged staff, operations at the refinery are expected to continue without disruption, providing a major boost to Nigeria’s efforts to achieve fuel self-sufficiency and conserve foreign exchange spent on imports.