Nigerian Senator Warns PENGASSAN Over Dangote Refinery Service Withdrawal
The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has been cautioned by Kogi West Senator, Sunday Karimi, to respect the Petroleum Industry Act, PIA, following the union’s directive to withdraw services from the Dangote Refinery. The move, effective from September 28, includes the suspension of gas and crude supply to the refinery, sparking concerns over potential economic damage and investor deterrence.
PENGASSAN’s General Secretary, Lumumba Okugbawa, issued the directive, citing industrial strategy as the reason behind the action. However, Senator Karimi condemned the move as “economic sabotage,” stating that it threatens the oil sector and exposes ulterior motives. He emphasized that no investor would invest in a country where a union can easily destroy a multibillion-dollar private investment without cause.
The Dangote Refinery, a $20 billion facility, is a significant player in Nigeria’s quest for self-sufficiency in fuel supply. Senator Karimi urged the Federal Government and law enforcement agencies to intervene, highlighting the potential consequences of the service withdrawal, including the loss of jobs and economic gains. Despite reports of 800 disengaged workers, the refinery still employs over 3,000 Nigerians, alongside numerous indirect employees, suppliers, and contractors.
The situation at the Dangote Refinery has been contrasted with other privately run sectors, where union activity is limited. Senator Karimi noted that, after deregulation, many private investors discouraged unionism and introduced attractive compensation systems, resulting in reduced union influence. He also pointed to the example of Nigeria’s private universities, where union activity is restricted, and the aviation, tourism, and electricity industries, where private investors dominate and union activity is limited or disallowed.
The senator recalled past resistance by unions to private-sector involvement in refining, citing the example of former President Olusegun Obasanjo’s attempt to sell the Port Harcourt refinery in 2007, which was opposed by unions and labour groups. This opposition led to Aliko Dangote building his own facility instead, which is now one of the world’s largest single-train refineries.
The Federal Government has not yet announced a response to calls for intervention, amidst strong criticism from politicians and sections of the public on social media. The situation remains a significant concern, with potential implications for Nigeria’s economy and investment climate. As the situation unfolds, it remains to be seen how the government and relevant stakeholders will address the issue and find a resolution that balances the interests of all parties involved.
