The Dangote Petroleum Refinery was forced to shut down operations on Sunday as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) enforced a labour decision following the alleged mass dismissal of over 800 workers.
The development marks a further escalation in the dispute between the union and the management of Africa’s largest refining facility, located in the Lekki Free Zone, Lagos. According to updates from PENGASSAN, the refinery has been completely shut down, with the fertiliser plant’s Train Two also fully halted, while Train One is operating at only 60 per cent capacity. The diesel plant, however, remains operational.
The union, which directed its members to down tools after an emergency National Executive Council (NEC) meeting on Saturday, September 27, said the shutdown extends beyond the refinery to other oil installations across the country. Crude oil and gas supply to the plant have also been disrupted.
PENGASSAN’s decision follows the dismissal of hundreds of workers allegedly for their involvement with the union. In a circular signed by its General Secretary, Lumumba Okugbawa, the association described the action as a necessary response to “anti-labour practices,” vowing not to resume operations until the sacked workers are reinstated and negotiations are held.
Reacting to the union’s move, Dangote Refinery described the directive as “economic sabotage” in a statement issued on Saturday. The company, however, has yet to officially confirm the extent of the shutdown.
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has called on both parties to engage in dialogue and resolve the dispute through peaceful negotiation.
Since its partial commissioning, the $20 billion Dangote Refinery has been central to Nigeria’s strategy to reduce dependence on imported petroleum products and stabilise domestic supply.