On Monday, the Ministry of Labour and Employment, representing the federal government, initiated a mediation session aimed at settling the ongoing conflict between Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Presiding over the meeting was Labour and Employment Minister Muhammad Dingyadi, joined by PENGASSAN leaders, representatives from Dangote Petroleum Refinery, the Finance Ministry, and senior officials from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Minister Dingyadi emphasized the critical nature of the dialogue, highlighting the need to prevent the dispute from negatively impacting Nigerians nationwide.
He expressed surprise at the extent of the strike, noting that it had effectively shut down key oil and gas facilities.
“This situation underscores how vital this sector is to our nation’s economy. We were taken aback to learn that PENGASSAN’s strike has led to the closure of the Nigerian National Petroleum Corporation (NNPC) and other major oil and gas subsidiaries,” Dingyadi remarked.
He added, “While I refrain from passing judgment, the scale of this industrial action is unprecedented. Historically, PENGASSAN has been known for its peaceful approach and commitment to Nigeria’s progress. Similarly, the Dangote Group has been a significant contributor to our economic development and maintains a strong partnership with the government.”
“Our priority is to ensure this conflict does not escalate further and adversely affect the public. That is why we are urgently stepping in as mediators to find a peaceful resolution that benefits all parties involved-the workers, employers, and the nation’s economy,” he concluded.
Consequences of the Dispute
The strike, which began on Monday, disrupted operations at several key oil and gas institutions, including the NUPRC, NMDPRA, and the Nigerian National Petroleum Company Limited (NNPCL).
Employees reported being barred from entering their workplaces upon returning from leave.
Fuel stations experienced closures, leading to a rush among consumers to secure gas supplies.
“I paid N1,250 for a litre of gas in Ejigbo, up from N1,000 just a fortnight ago. Only one station had gas available,” shared Waheed Odutola, a government employee.
Government’s Role in Mitigating the Crisis
Insiders revealed that government intervention was crucial in alleviating the fuel shortage affecting households and businesses.
By Monday, petrol and gas scarcity had become evident in major cities such as Lagos, Port Harcourt, and Abuja, among others.
The country cannot sustain a prolonged fuel shortage, as it risks stalling economic activities.
Moreover, interruptions in petrol supply could increase reliance on imports, compelling marketers to seek foreign currency, thereby exerting pressure on the naira.
This strain could undermine the recent strengthening of the naira, which on Monday reached a historic peak of N1,476.34 per US dollar since the launch of the Electronic Foreign Exchange Matching System (EFEMS) on the Bloomberg BMatch platform in December 2024.
Since EFEMS was introduced, the naira has appreciated by N184.78, marking a 12.5% improvement from the initial rate of N1,661.12 per dollar.