The rift between the Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has widened following the suspension of monthly salaries for engineers laid off in September amid a labour dispute.
The refinery reportedly stopped paying the affected workers after many of them declined redeployment to alternative Dangote projects located in Zamfara, Benue, Borno, Sokoto, and other states.
Investigations by The PUNCH indicate that the wage suspension followed weeks of tension, during which the engineers—who were reassigned to coal mines, concrete road construction sites, and rice processing plants—rejected the postings while awaiting the outcome of ongoing union negotiations.
Several of the workers, who spoke anonymously due to the sensitivity of the dispute, said the assignments included coal projects in Benue, concrete road sites in Borno and Ebonyi, and rice factories in Kebbi, Niger, Sokoto, and Zamfara.
Although a few accepted the postings, most relied on assurances from PENGASSAN that the matter would be resolved through dialogue.
It was further learnt that the Dangote Group first issued a warning in October by reducing the affected workers’ salaries before withholding their November pay entirely.
A senior Dangote official confirmed the development, insisting the company could not continue paying workers who rejected alternative employment. The official, who requested anonymity, argued that the company had offered redeployment in good faith.
“Those whose services were terminated were given opportunities to work on other projects, including rice mills, concrete road construction, and coal mines. All who accepted have since resumed,” the official said. “If an organisation provides alternative employment and the individual declines, will it keep paying salaries?”
In September, PENGASSAN shut down oil and gas facilities across the country, alleging that about 800 refinery workers were dismissed for joining the union. The refinery denied the claim, maintaining it only disengaged staff accused of sabotage as part of a reorganisation exercise.
The shutdown led to production losses and contributed to reduced power supply nationwide before the Federal Government intervened, directing the redeployment of the dismissed workers.
In October, the affected engineers were invited to pick up new placement letters from the Dangote Group’s Ikeja office. One such letter, titled Offer of Trainee Engagement, detailed a two-year training programme for mechanical engineering trainees at a coal project in Benue State.
However, many engineers expressed concerns about the postings, citing security risks and the absence of clear reporting locations.
“There was no office address to report to. These are security-prone zones. The letter said we must report within 14 days, but there’s no office to report to. That alone amounts to self-termination. PENGASSAN advised us not to accept until dialogue is concluded,” one worker said.
Speaking during a recent briefing, PENGASSAN President Festus Osifo said the union was actively engaging the Dangote Group to resolve outstanding issues without returning to industrial action.
“Though there are still unresolved matters, the NEC decided to continue pushing through dialogue. We hope that these issues will be resolved at the negotiation table,” Osifo said.
But the Dangote Group maintains it has the right to make business decisions. A senior official remarked, “PENGASSAN can ask for anything, but we also reserve the right to determine what aligns with our operations.”
Some affected engineers said they believed the salary suspension breached previous agreements.
“An agreement was reached that we would be deployed within Dangote’s oil and gas companies and that salaries would be paid until the issue was resolved, but our October salaries were slashed, and now November has not been paid. That is victimisation.” They said.
As the impasse persists, the engineers fear being forced into roles they consider unsafe or irregular, while PENGASSAN continues efforts to prevent a repeat of the September shutdown.
With both sides refusing to back down, the eventual resolution of the dispute now depends on the success of ongoing negotiations between PENGASSAN and the Dangote Group.
