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Dangote Refinery Settles Worker Dispute

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In October 2025, Dangote Refinery reached an agreement to redeploy workers previously dismissed over alleged sabotage concerns, following intense negotiations with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and federal officials.

Initial Proposal

Dangote proposed paying the sacked workers’ salaries for five years without requiring them to work, citing risks of sabotage if they remained at the facility. Government mediators questioned the financial burden of this plan.

Union Rejection

PENGASSAN rejected the pay-without-work offer, advocating instead for reassignment within the Dangote Group.

Union leader Lumumba Okugbawa emphasized worker welfare, stating, “The final agreement matters most, not rejected proposals.”

Negotiation Outcome

After days of talks, backed by a court order, the refinery agreed to redeploy the workers to other divisions without pay cuts.

PENGASSAN stressed that employees must report to their new roles to continue working.

Union’s Role

Okugbawa compared the union’s mediation to resolving a family dispute. “We broker peace and step back, letting workers and management move forward together,” he said, dismissing fears of unfavorable redeployments as speculative.

Positive Focus

The union urged the public to focus on the agreement’s benefits, ensuring job security for workers. “Our goal is harmony, not conflict, with Dangote Refinery,” Okugbawa added.

Background Context

The dispute began when Dangote dismissed workers, alleging potential sabotage. PENGASSAN’s protests and a nationwide service withdrawal prompted government intervention, leading to the resolution.

Strike Suspension

PENGASSAN President Festus Osifo suspended the strike but warned of swift action if the agreement is violated, emphasizing the union’s commitment to workers’ rights.

Why It Matters

This resolution highlights Nigeria’s evolving labor landscape, balancing corporate security with employee welfare, and strengthens trust in public-private negotiations.

What’s Next

In October 2025, Dangote will implement the redeployment plan, while PENGASSAN monitors compliance to ensure workers’ rights are upheld.

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