The management of Dangote Petroleum Refinery has accused the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) of repeating the same obstructionist tactics that left Nigeria with broken refineries nearly two decades ago.
In a strongly worded statement, Dangote Group recalled how PENGASSAN and its allies opposed the 2007 sale of the moribund Port Harcourt and Kaduna refineries to the Dangote-led Blue Star Consortium for $750 million. That deal, which experts widely considered a step toward reforming Nigeria’s downstream sector, was reversed after union protests. The refineries have remained largely idle ever since, costing the nation billions in lost revenue and continued fuel imports.
“History Is Repeating Itself”
According to the company, the union’s latest actions—ordering supply cut-offs and declaring a nationwide strike over the alleged dismissal of 800 workers—show the same pattern of undermining reforms at the expense of ordinary Nigerians.
“Just as PENGASSAN blocked the $750 million sale of refineries and left Nigerians with broken plants, they are now trying to cripple the Dangote Refinery, Africa’s largest industrial project,” the statement read.
The refinery insisted that the sackings in question were part of a limited reorganisation to tackle sabotage and stressed that over 3,000 Nigerians remain in its workforce.
Call for Government Protection
Dangote Refinery urged the Federal Government and Nigerians at large not to allow what it called “the union’s terror tactics” to derail the country’s economic recovery and energy security.
“This refinery is a national asset. We cannot allow PENGASSAN to plunge the economy into chaos or hold Nigerians hostage by disrupting fuel supply,” management declared.
The company also challenged PENGASSAN and its ally, NUPENG, to publish 10 years of audited accounts to prove transparency in their operations.
Fact Check: Who Cancelled the 2007 Refinery Sale?
While unions strongly opposed the 2007 sale of the Port Harcourt and Kaduna refineries to Blue Star Consortium, historical records show that it was President Umaru Musa Yar’Adua who formally cancelled the deal after taking office in May 2007.
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Labour’s Role: PENGASSAN and NUPENG had mobilised strikes, protests, and petitions against the sale, arguing it was undervalued and lacked transparency. Their opposition created significant political pressure.
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Government’s Role: Yar’Adua, seeking to distance himself from President Olusegun Obasanjo’s privatisation programme, announced the reversal within weeks of assuming office.
So while labour unions did not technically reverse the sale, their agitation provided the political cover and momentum for Yar’Adua’s decision. The outcome was the same: the refineries returned to government control and have remained largely unproductive.
Broader Context
Labour unions have long positioned themselves as defenders of Nigerian workers, but critics argue their resistance has repeatedly delayed reforms that could have modernised the oil sector. From the reversal of refinery privatisations to protests against subsidy removal, unions are seen as securing short-term wins while leaving Nigerians with long-term economic pain.
Dangote’s refinery, with a capacity of 650,000 barrels per day, is designed to end decades of import dependence. Any prolonged disruption risks destabilising fuel supply, increasing inflation, and worsening hardship for households already battered by economic reforms.
The refinery’s statement underscores the high stakes of the current dispute: whether Nigeria can move past a cycle where labour obstruction and political caution stalled reforms, keeping the country dependent on broken refineries and costly imports.
“PENGASSAN must not be allowed to derail the future the same way it destroyed opportunities in the past,” Dangote said.
2007 Refinery Sale at a Glance
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What Happened:
In May 2007, outgoing President Olusegun Obasanjo sold the Port Harcourt and Kaduna refineries to the Blue Star Consortium (led by Dangote and Femi Otedola) for $750 million. -
Union Reaction:
PENGASSAN and NUPENG condemned the sale, calling it undervalued and opaque. They mobilised strikes and protests against the transaction. -
Political Decision:
Within weeks of assuming office, President Umaru Musa Yar’Adua cancelled the sale and returned the refineries to government ownership. -
The Outcome:
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Refineries remained moribund and unproductive.
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Billions spent on “turnaround maintenance” failed to revive them.
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Nigeria continued importing petrol, draining scarce foreign exchange.
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Why It Matters Today:
Critics argue that union opposition, combined with political caution, derailed reform and entrenched inefficiency—a cycle that today’s Dangote–PENGASSAN dispute threatens to repeat.