The Nigerian Federal Government has successfully mediated a resolution between the Dangote Group and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), ending a heated labor standoff that threatened the nation’s energy sector.
A statement issued in the early hours of Wednesday October 1, 2025 by the Minister of Labour and Employment, Dr Mohammed Maigari Dingyadi, disclosed that the matter was resolved following lengthy discussions.
According to the statement in parts, the resolutions reached included: “The Honourable Minister of Labour informed the meeting that unionisation is a right of workers in accordance with the laws of Nigeria, and this right should be respected.”
The conflict erupted on September 30, 2025, when PENGASSAN accused Dangote Refinery of unlawfully dismissing union members and replacing them with expatriate workers. In response, the union suspended critical gas and crude oil supplies to the facility, raising alarms over potential economic disruptions and energy shortages.
Following a deadlock in negotiations on September 29, 2025, the Ministry of Labour and Employment stepped in urgently. A high-level meeting, chaired by Minister Dr. Mohammed Maigari Dingyadi, brought both sides to the table on September 30.
In a breakthrough agreement, Dangote Group committed to promptly reassigning the affected workers to other subsidiaries within the conglomerate. Crucially, the redeployed employees will face no salary deductions or financial penalties for the transition.
“PENGASSAN has agreed to initiate the strike suspension process immediately,” Minister Dingyadi announced. “This understanding reflects mutual good faith, ensuring stability in our vital petroleum industry.”
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The minister underscored the legal protections for workers’ rights to unionize under Nigerian law, urging all employers to uphold these standards. Dangote officials welcomed the outcome, reaffirming their dedication to fair labor practices while denying prior allegations of wrongful terminations.
PENGASSAN’s leadership expressed satisfaction with the compromise, noting it safeguards members’ jobs and prevents further escalation. The refinery, a cornerstone of Nigeria’s push for fuel self-sufficiency, can now resume full operations without interruption.
It bears mentioning that this swift intervention highlights the government’s role in balancing industrial harmony and economic resilience. As supplies normalize, experts anticipate minimal long-term impacts on fuel prices and availability nationwide.
