Dangote Refinery PENGASSAN dispute sparks economic sabotage claim

Dangote Refinery has condemned the directive by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to cut gas and crude supply to the plant, describing it as economic sabotage. The refinery made this known in a statement, following PENGASSAN’s instruction to its members to disrupt supply in response to the sack of over 800 workers belonging to the union.

The dispute began when Dangote Refinery terminated the employment of hundreds of unionized workers, prompting PENGASSAN to call for a nationwide cut-off of gas and crude supply to the 650,000-barrel-per-day refinery. The refinery has denounced this move as a “criminal and illicit affront” against a national asset, questioning whose interest PENGASSAN is serving by directing such action.

Dangote Refinery emphasized that it is a strategic national asset, being the only refinery of its type in Africa, and that any harm to it would constitute a national embarrassment. The company also warned that the union’s directive would discourage external investors from investing in Nigeria’s oil and gas sector. The refinery has urged the Federal Government to intervene and call PENGASSAN to order, citing the need to prevent a disruption that could have far-reaching consequences for the Nigerian society and economy.

PENGASSAN had earlier vowed to take all necessary action to address what it termed the unjust treatment of Nigerian workers by the refinery. The union had demanded the reversal of the sack, which it considered arbitrary and unjust. However, Dangote Refinery has remained silent on the issue, focusing instead on the potential consequences of the union’s directive.

The refinery’s statement highlights the significance of the dispute, which has the potential to affect not only the refinery’s operations but also the broader Nigerian economy. As the situation unfolds, it remains to be seen how the Federal Government will respond to the refinery’s call for intervention and whether a resolution can be found to address the concerns of both parties. The outcome of this dispute will likely have important implications for the Nigerian oil and gas sector, as well as the country’s reputation as a destination for foreign investment.

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