Nigeria’s government has moved to prevent a looming strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) that threatens crude supplies to the 650,000 barrel-a-day Dangote refinery and the country’s oil exports.
Minister of State for Labor Nkeiruka Onyejeocha confirmed that talks with Pengassan leaders have been scheduled for 2 p.m. on Monday in Abuja to defuse the dispute.
The union had directed members in companies including TotalEnergies SE and Chevron Corp. to suspend crude deliveries to Dangote’s refinery following allegations that workers were dismissed for joining the union.
A disruption of crude supply would impact Nigeria’s daily exports of about 1.5 million barrels and undermine the refinery’s role in meeting between 35 percent and 50 percent of domestic gasoline demand.
Global fuel markets already reacted last week, with gasoline futures rising the most relative to crude since June as traders weighed the risks of potential shortages.
Pengassan has insisted that crude supplies will not resume until the dismissed staff are reinstated. The union accused Dangote of barring refinery workers, including truck drivers, from joining its ranks and said those who defied the directive were laid off. It maintained that the stoppage must continue until management reverses the decision.
Dangote, in a statement, described the action as a threat to Nigeria’s energy security and economic recovery.
He maintained that the refinery is undergoing a reorganization exercise which resulted in the discharge of what he called a “very small number of staff,” stressing that the exercise was not arbitrary.
The Dangote refinery, which has become a vital player in Nigeria’s downstream oil sector since it began operations, has reduced the nation’s reliance on imported refined products and occasionally exports gasoline to international markets.
Any prolonged disruption in supply would have broad economic implications, heightening the government’s urgency to resolve the matter.
The outcome of Monday’s meeting in Abuja will be critical for determining whether Pengassan suspends or escalates its action.