The House of Representatives Committee on Petroleum Resources (Downstream) has urged the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to immediately retract its directive to halt the supply of gas and crude oil to the Dangote refinery.
Committee Chairman Ikeagwuonu Ugochinyere, in a statement shared with PREMIUM TIMES on Saturday evening, warned that the union’s shutdown order risks destabilizing the downstream petroleum sector, deterring investors, and obstructing peaceful conflict resolution efforts.
“The House Committee on Downstream Petroleum Resources strongly opposes PENGASSAN’s ongoing industrial action, particularly the abrupt instruction to some branches to suspend gas and crude oil deliveries to Dangote Refinery without prior notice or adherence to established trade union protocols,” Mr. Ugochinyere stated. “We call on the union to rescind this directive and engage in constructive dialogue.”
The lawmaker emphasized that the dispute between Dangote Refinery and PENGASSAN threatens the stability of the downstream sector and could discourage foreign investment. He criticized the union’s decision as premature, noting that all grievance channels have not been fully explored.
“Such a move sends a negative signal to international investors, suggesting that due process is disregarded in resolving sectoral disputes. It is imperative that PENGASSAN returns to the negotiation table for talks facilitated by the downstream committee, including regulators, the Ministry of Labour, and Dangote Refinery representatives, to forge a sustainable resolution,” he added.
Mr. Ugochinyere appealed to PENGASSAN to maintain uninterrupted gas supply to the refinery and allow legislative intervention for the nation’s benefit.
Committee’s Approach
The committee has initiated contact with relevant stakeholders to organize a downstream stability forum. This platform will bring together the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), PENGASSAN, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and lawmakers to address the root causes of the shutdown directive.
Additionally, the committee appointed Akin Rotimi as chairman of a sub-committee, with members Midala Usman, Billy Osawaru, and Mathew Nwaogu, tasked with reconciling differing views on key issues such as workers’ rights regarding union membership and operational autonomy of private enterprises.
“The sub-committee will also examine concerns about alleged retrenchments and the extent to which private companies can manage their operations efficiently, which are central to the ongoing dispute involving Dangote Refinery and unions like NUPENG and PENGASSAN,” Mr. Ugochinyere explained.
The committee has set a 14-day deadline to complete its review and urged all parties, including NUPENG, PENGASSAN, and Dangote Refinery, to provide comprehensive documentation on the contentious matters to facilitate effective resolution.
Appeal for Resolution
Mr. Ugochinyere encouraged PENGASSAN to embrace negotiation, dialogue, and Alternative Dispute Resolution (ADR) mechanisms, which are widely recognized under labor laws globally.
“While the committee acknowledges PENGASSAN’s concerns, it cannot condone the union’s abrupt decision to halt gas supply to Dangote Refinery without prior notification,” he said.
“This rash action threatens Nigeria’s energy security, risks damaging a critical private sector investment, and undermines ongoing efforts to maintain peace in the sector. Therefore, the shutdown order must be revoked immediately,” he urged.
Earlier reports indicate that PENGASSAN instructed its members to disrupt operations at the refinery by blocking gas deliveries. The union justified this move as a response to the refinery’s management allegedly terminating some unionized workers and accused the company of spreading false information to rationalize its actions.
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In response, Dangote Refinery condemned the union’s directive as unlawful, reminding PENGASSAN to comply with Nigerian laws. The refinery stressed that the union lacks the legal authority to interfere with its contracts involving third-party suppliers of gas and crude oil.
Dangote Refinery has appealed to the federal government and security agencies to intervene and ensure PENGASSAN adheres to legal frameworks, warning that the union’s actions could severely impact Nigeria’s economy and its citizens.