Dangote vs Others: Why It’s Time for Federal Government Mediators

A recent industrial showdown involving Dangote Petroleum Refinery, PENGASSAN, and other stakeholders has spotlighted recurring friction in the petroleum sector — particularly around union rights, licensing, crude supply, and operational compliance. The Federal Government (FG) has been forced to step in multiple times, acting as mediator. This pattern suggests that bearers of friction between big players are becoming structural, and FG mediation might be less a choice and more a necessity.

Key Conflicts & Tensions

1. PENGASSAN Strike & Worker Dismissals

   • Over 800 workers at Dangote were reportedly dismissed for union membership — an act disputed by Dangote management, which describes it as part of “re-organisation.” PENGASSAN insists these dismissals violated labour rights.

   • PENGASSAN ordered a nationwide strike starting September 29, 2025, including cutting off gas supply and crude supply to Dangote refinery, which threatened to disrupt fuel supply and other downstream operations. 

2. Unionisation & Labour Rights

   • A central issue is whether Dangote staff should be allowed to unionise freely. Stakeholders — especially PENGASSAN, NUPENG, and the labour ministry — assert that union membership is a constitutional right. Dangote's contradictory actions led to accusations of anti-union behaviour.

3. Regulator and Licensing Disputes

   • Dangote has sued NMDPRA and others over import licence issues, arguing some import licences granted to other firms violate sections of the Petroleum Industry Act (PIA). 

   • There have also been complaints about enforcement of the Domestic Crude Supply Obligation (DCSO) — that local crude producers should supply refineries like Dangote, but production/supply has often been inadequate. 

4. Federal Government Interventions

   • The FG has intervened: Labour and Employment Minister Dingyadi has led mediation talks between PENGASSAN and Dangote, resulting in agreements to reassign dismissed workers, respect unionisation, and call off strikes. In addition, FG set up committees to address crude supply to local refineries, enforce industry regulations, and resolve licensing disputes. 

Why FG Mediation Is Now Imperative

• Sectoral stability: Disputes that escalate to strikes threaten fuel supply, downstream operations, and by extension the national economy. The recent PENGASSAN strike pulled production down by ~16% at its height. Rule of law & labour rights: Conflicts over unionisation, employee rights, and due process risk undermining trust in both private business and regulatory institutions. FG stepping in helps uphold legal frameworks (labour laws, PIA) and reassure workers and investors.

• Avoiding regulatory and investor risk: Unresolved disputes with Dangote and other refineries — around import licences, crude supply, or unfair competitive practices — can deter foreign capital, disrupt domestic refining, and slow progress toward energy self-sufficiency.

• Balancing interests: Dangote, though a major private player, is constrained by upstream supply, regulatory licensing, labour relations, and market dynamics. Other marketers and unionised workers also have stakes. FG mediation can aim to balance all parties’ interests.

What Effective Federal Mediation Should Include

1. Transparency in Agreements: All parties — Dangote management, unions, regulators — should publicise details of any settlement: timelines for rehiring/redistribution, licensing decisions, etc.

2. Legal & Regulatory Clarifications: FG should ensure that regulator agencies like NMDPRA and NUPRC enforce the PIA and DCSO without bias. Rules about union rights, licensing, supply obligations must be clear and applied uniformly.

3. Monitoring & Accountability: Follow up mechanisms post mediation to make sure agreements are implemented. For example, reconciling whether disengaged workers are truly redeployed, whether unionisation is respected, whether promised licences are genuinely suspended or cancelled where needed.

4. Inclusive Stakeholder Engagement: Not just Dangote and the unions, but also small marketers, oil producers, downstream companies, civil society, even local communities – so people affected by pricing or supply shocks are heard.

Case Study: What FG Did Recently

• After the PENGASSAN strike, FG negotiated a truce: over 800 dismissed workers would be reassigned within Dangote Group with no loss of pay; no worker would be victimised; PENGASSAN called off the strike. 

• FG also urged caution to unions like NUPENG before calling for large-scale industrial action, persuading them through negotiation rather than open confrontation. 

Conclusion

Dangote’s rise as Africa’s largest refinery is significant for Nigeria’s energy future, but it also brings clashes around labour, regulation, supply, and competition. With repeated frictions erupting, FG mediators are no longer optional — they're essential.

If managed well, mediation can unlock smoother operations, stabilize fuel supply, reinforce investor confidence, and ensure labour rights. If neglected, such disputes risk scaling, causing supply disruptions, economic losses, and distrust. There’s a window now for FG to step in with fairness, consistency, and a transparent hand.