October 22, 2025
Lagos, Nigeria
Economy

Reps Step In as PENGASSAN–Dangote Refinery Dispute Threatens National Energy Security

The House of Representatives has intervened to mediate the ongoing dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Petroleum Refinery & Petrochemicals FZE, following disruptions to petroleum product distribution and crude oil production across the country.

The decision came after lawmakers adopted a motion of urgent public importance co-sponsored by Alhassan Ado Doguwa (Kano) and Abdussamad Dasuki (Sokoto) during Tuesday’s plenary. The motion, titled “We Need to Protect Private Investment from Adversarial Unionism,” drew attention to the economic significance of the Dangote Refinery, described as Africa’s largest private petroleum refinery and one of Nigeria’s most strategic private investments.

The face-off, which began on September 29, 2025, led to a temporary halt in operations at the $20 billion refinery, reportedly causing a daily loss of about 200,000 barrels of crude oil over three days. The disruption also exacerbated fuel scarcity and triggered long queues at filling stations across several states, further compounding the hardship faced by millions of Nigerians.

Presenting the motion, Doguwa stressed that the Dangote Refinery operates within a free-trade zone regulated by the Nigeria Export Processing Zones Authority (NEPZA). Citing Section 18(5) of the NEPZA Act, he noted that employment within such zones is governed by the authority’s rules and not by general labour laws. He warned that union actions that disregard these legal protections could discourage investment and threaten the stability of key national assets.

“The House is concerned that if private investments of strategic national importance continue to face unlawful disruptions from adversarial unionism, Nigeria risks not only the failure of key economic assets but also the erosion of investor confidence needed for growth and development,” Doguwa said.

Other lawmakers, including Ahmad Jaha (Chibok/Damboa/Gwoza), cautioned the House to tread carefully, describing a proposed probe into the matter as ill-timed. Despite this, the motion was adopted after deliberation.

Following the resolution, the House directed its leadership to broker peace between PENGASSAN and the Dangote Refinery in the interest of national stability. It also urged the Federal Ministries of Labour and Employment, Industry, Trade and Investment, and Justice to jointly develop a national framework to protect strategic private investments from unlawful industrial actions.

Additionally, the House mandated the Federal Ministry of Justice and NEPZA to ensure full enforcement of Section 18(5) of the NEPZA Act in all relevant free-zone operations.

The dispute between PENGASSAN and the refinery reportedly began after the union accused the company of sacking over 800 Nigerian workers and replacing them with expatriates, claims the refinery management has denied. The conflict escalated into an industrial action that briefly halted crude and gas supply, prompting government intervention and a court injunction restraining PENGASSAN from further disruption.

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