Dangote’s Might, PENGASSAN’s Stand and the Road to Fuel Security

By Zeenat Sambo

The bitter feud between Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has once again placed Nigeria’s oil sector at the centre of national anxiety. What began as a dispute over unionisation has quickly escalated into a battle that now threatens fuel security, foreign exchange stability, and the very survival of ordinary Nigerians.

At the heart of the matter lies a fundamental question: is this merely a routine labour-management clash, or is it a gathering storm capable of erasing the hope that Dangote Refinery was meant to represent?

Since its commissioning in May 2023, the 650,000-barrels-per-day facility—Africa’s largest—has carried the weight of enormous expectations. Yet, the refinery has been trailed by regulatory disputes, crude supply shortfalls, and ownership controversies.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) once accused it of flouting fuel quality standards, a claim Dangote strongly countered with evidence of exports that met stringent Euro V benchmarks.

Alongside this, tensions with NNPC Limited over crude supply and import licences revealed deeper structural problems: Nigeria’s dilemma of chasing dollar revenues from crude exports while struggling to meet local refining needs. With NNPC holding a 20 percent equity stake in the refinery, disputes over control, pricing, and influence have never been far away.

That uneasy backdrop has now collided with organised labour’s demand for representation, transforming a corporate dispute into a full-blown national energy risk.

The latest trigger was the dismissal of over 800 workers allegedly for joining PENGASSAN. The union claimed they were replaced with thousands of foreign workers, while Dangote management defended the restructuring as an operational necessity.

In retaliation, PENGASSAN cut crude and gas supplies, threatening the refinery’s $20 billion operations. Dangote’s counter move—halting naira-denominated fuel sales—has effectively pegged local fuel prices to the volatile dollar exchange rate, deepening the strain on Nigeria’s fragile reserves.

The Petroleum Tanker Drivers’ branch of NUPENG intervened, urging restraint and warning that union “politics” must not undermine a refinery described as a national strategic asset. Yet escalating protests, including union lockouts at NNPC, NUPRC, and NMDPRA offices, suggest the crisis is far from contained.

If the stalemate lingers, Nigeria could be thrown back into total import dependence, reviving fuel queues and driving up transport, electricity, and industrial costs. The fragile naira, which had recently shown signs of recovery, could slide once more as marketers scramble for scarce dollars to buy refined products.

Investor confidence is equally on the line. A labour dispute crippling Nigeria’s flagship private refinery sets a worrying precedent, casting doubt on whether the country can truly host large-scale investments without disruption.

At a time Nigeria desperately needs capital inflows, this is the wrong signal to send. Equally dangerous is the erosion of public trust. Nigerians were promised that Dangote Refinery would end the decades-old nightmare of fuel scarcity. If the project dissolves into yet another tale of dashed expectations, frustration could spill into unrest, further undermining government credibility.

Labour rights must be respected; no democracy can deny workers the right to unionise. Yet energy security is not a pawn in industrial politics. The federal government cannot afford to remain a bystander while the backbone of its fuel reform agenda unravels.

What is urgently needed is impartial mediation—firm but fair—that secures workers’ rights while ensuring uninterrupted refinery operations. National interest must stand above union battles or corporate control.

Nigeria cannot afford to gamble with fuel supply, foreign exchange stability, and investor confidence. The Dangote–PENGASSAN feud is no longer a labour quarrel; it is a test of governance, leadership, and the country’s capacity to safeguard its most strategic assets for the good of its people.