The government of Nigeria has confirmed that the Dangote Group will reinstate workers recently disengaged from the Dangote Refinery, following a mediated agreement that brought an end to the strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The government announced that the company will redeploy the affected staff to other subsidiaries within the Dangote Group with no loss of pay, while PENGASSAN will begin the process of calling off its industrial action.
A statement issued early Wednesday by the Minister of Labour and Employment, Dr. Mohammed Maigari Dingyadi, explained that the decision was reached after two days of intense negotiation sessions involving key government officials, union leaders, and representatives of the Dangote Group.
“Unionisation is a right of workers in accordance with the laws of Nigeria, and this right should be respected,” the minister stated in the communiqué released after the meeting.
“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 Dangote Group, with no loss of pay.
“No worker will be victimised arising from their role in the impasse between Dangote and PENGASSAN,” the statement added.
Government steps in to ease refinery tensions
Moreover, the government’s intervention followed growing tension between the management of the refinery and the workers’ union over alleged termination of employment.
The dispute had led to a strike that disrupted operations at the refinery, one of Africa’s largest industrial facilities.
Dr. Dingyadi noted that government officials worked closely with both parties to ensure that industrial harmony was restored without further disruption to national productivity.
He explained that the decision reflects President Bola Tinubu’s administration’s commitment to maintaining peace between employers and labour unions while safeguarding the rights of workers.
Senior government officials who participated in the meeting included the National Security Adviser, Mallam Nuhu Ribadu; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Budget and Economic Planning, Senator Atiku Bagudu; and the Minister of State for Labour and Employment, Barrister Nkeiruka Onyejeocha.
Why the deal matters for Nigeria’s oil sector
Nigeria’s oil and gas industry has witnessed several labour disputes in recent years, often tied to union representation, pay structures, and job security.
The PENGASSAN union, which represents senior oil and gas workers across the country, has repeatedly called for fair labour practices and proper engagement with managements of both private and state owned energy firms.
The refinery’s dispute had drawn public concern due to its potential impact on domestic refining efforts.
The Dangote Petroleum Refinery, which began limited operations in 2024, is expected to reduce Nigeria’s dependence on imported refined petroleum products.
The successful resolution of the dispute is therefore seen as critical to maintaining the refinery’s output targets and ensuring stability within the country’s downstream oil sector.
