Tensions between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have resurfaced, following the suspension of monthly salaries for engineers affected by the September labour dispute. The stoppage, confirmed by company officials, targets workers who declined redeployment to other Dangote projects across several northern states.
According to findings, many of the engineers turned down postings to locations in Zamfara, Borno, Benue, Sokoto, and other states, citing safety concerns and irregularities in their deployment letters. While a few accepted the new roles, the majority relied on PENGASSAN’s assurances that the dispute would be resolved through dialogue and refused to resume duty.
Sources disclosed that Dangote Group first issued a warning by slashing the workers’ October wages before withholding their November pay entirely. A senior company official, who requested anonymity, said the refinery would not continue paying those who rejected alternative job placements. He argued that the organisation had offered roles at rice mills, concrete road projects, and a coal mine—positions he said were intended to cushion the effect of the earlier termination.
The employees, however, described the withheld salaries as “victimisation,” insisting that Dangote had agreed to continue payments until an amicable resolution was reached. They also raised concerns that their redeployment letters contained no physical office addresses, and that many of the designated locations were in areas they consider security flashpoints. Some said their attempts to verify the project sites revealed no trace of operational facilities on digital maps.
Dispute Rooted in September Shutdown
The conflict dates back to September, when PENGASSAN shut down oil and gas installations nationwide after alleging that 800 workers were sacked from the refinery for choosing to unionise. Dangote Group disputed the claim, saying only a limited number of employees were dismissed for acts it described as sabotage, and that the exercise amounted to internal reorganisation.
The shutdown severely affected oil and gas output and contributed to reduced power generation, prompting federal intervention that led to the redeployment plan currently at the centre of the dispute.
In October, affected engineers were invited to pick up new engagement letters for trainee roles at Dangote Projects Limited. One such letter, issued for a mechanical engineering trainee position at a coal project in Benue State, required reporting within 14 days and included a two-year structured training programme. Yet many employees questioned the viability and safety of the postings, saying the conditions amounted to self-termination.
Union Pushes for Negotiation Over Renewed Industrial Action
PENGASSAN President, Festus Osifo, said last week that the union remains committed to dialogue and is continuing engagements with Dangote Group to resolve outstanding issues. Although some progress has been made since the national industrial action, Osifo confirmed that several key concerns remain unresolved.
He urged both sides to prioritise negotiation to prevent a relapse into industrial conflict, stating: “These issues should be resolved through jaw-jaw so that we will not go back to Egypt. We do not shy away from doing what is right, but our preference is settlement at the negotiation table.”
Dangote Group maintains that while the union is free to make its requests, the company also reserves the right to take decisions that align with its business interests.
Workers Remain in Limbo
The engineers affected by the stalemate say they now face the prospect of losing their income or accepting postings they consider unsafe, unclear, or inconsistent with earlier assurances that they would be reassigned to Dangote’s oil and gas subsidiaries.
With salary payments already halted and both sides holding firm to their positions, the fate of the workers now hinges on ongoing discussions between PENGASSAN and the Dangote Group. Until a resolution emerges, the dispute remains a contentious test of labour relations at one of the country’s largest industrial facilities.