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PENGASSAN-Dangote Refinery Dispute Risks Economic Sabotage if Unresolved, Warns Former TUC President

Peter Esele, a former president of the Trade Union Congress (TUC), has raised serious concerns over the ongoing conflict between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Refinery, warning that the dispute, if mishandled, could escalate into a form of economic sabotage. In an interview with ARISE News, Esele emphasized the need for mutual understanding and constructive dialogue between both parties, stressing the importance of balancing workers’ rights with the continued functioning of the refinery.

Esele acknowledged the significance of the Dangote Refinery as a national asset and a symbol of industrial progress for Nigeria. However, he also affirmed that workers have the constitutional right to unionize and withdraw their services when necessary. He pointed out that while the refinery, as a private business, has the right to hire and manage its workforce, it does not have absolute authority to terminate employees without due process, particularly in the context of labor rights and union activities.

The conflict stems from the alleged dismissal of over 800 unionized workers by the refinery’s management. PENGASSAN, in response, ordered an immediate halt to gas supply to the Dangote Refinery, instructing members to shut down crude oil valves, stop vessel loading operations, and withdraw their services. The union accused the refinery of avoiding constructive engagement and instead resorting to misinformation and propaganda. In turn, Dangote Refinery labeled PENGASSAN’s actions as illegal and warned that such interference could create nationwide disruptions.

Esele, who claims to have engaged in discussions with all key stakeholders — including PENGASSAN officials, refinery executives, and Aliko Dangote himself — described the relationship between the union and the company as one of mutual dependency, where both parties stand to gain from cooperation. He urged both sides to prioritize dialogue over confrontation, noting that an immediate strike could inflict more harm on the general public than on those directly involved.

He proposed a three-step approach to resolving the conflict: continuing dialogue, allowing PENGASSAN to unionize refinery workers, and addressing Dangote’s concerns about potential future disruptions. Esele noted that company managements are often wary of unionization, but emphasized that this should not override workers’ rights. He encouraged union leaders to reflect on why managements might resist unions, and to work toward building trust.

Criticizing the role of the Ministry of Labour, Esele expressed disappointment over what he described as the ministry’s ineffectiveness in resolving industrial disputes. Nevertheless, he praised the intervention of the Coordinating Minister for Finance, seeing it as a positive move toward resolution.

Esele concluded by reiterating the importance of resolving the issue through structured dialogue, keeping national interest at the forefront. While acknowledging the possibility of disagreements and tensions, he stressed that all parties must work toward a peaceful and sustainable resolution, given the strategic importance of the refinery to Nigeria’s economy.

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