The Dangote Petroleum Refinery has halted the salaries of engineers dismissed in September during a dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
PENGASSAN stated it is engaging the Dangote Group to resolve the matter through dialogue rather than escalating to another industrial action.
According to findings by The PUNCH, the salary suspension followed the refusal of several engineers to accept redeployment to states including Zamfara, Borno, Benue, and Sokoto. Some staff were reportedly sent to work on coal projects, concrete road construction sites, and rice plants in various locations, but many declined, relying on assurances from PENGASSAN that negotiations would address the dispute.
While a few workers accepted the redeployments, the majority rejected them. The Dangote Group had previously issued a warning in October by reducing salaries of the affected workers, before withholding November pay entirely.
A senior Dangote Group official, speaking off the record, confirmed that the company would no longer pay employees who refused the offered redeployment.
“Those whose services were terminated were given opportunities in other projects, such as coal, concrete roads, and rice mills. All who accepted have started working. If an employee refuses alternative employment, why should the company continue paying their salary?” the official said.
The dispute began after PENGASSAN shut down oil and gas facilities in September, claiming that 800 refinery workers were dismissed for union membership. The Dangote refinery, however, insisted only a few employees were let go for sabotaging operations, describing the action as part of a reorganisation. The shutdown led to nationwide losses in oil and gas production and reduced power generation until the federal government intervened, ordering redeployments.
In October, affected engineers were invited to collect letters from the Dangote Group’s Ikeja office. One letter, titled “Offer of Trainee Engagement”, offered placement as Engineer Trainee (Mechanical Engineering) on a coal project in Okpokwu, Benue State, with a two-year training period in classroom and hands-on skills development.
Many engineers expressed concerns over the postings, citing security risks and a lack of verifiable work locations. “The letters provide no addresses, no offices to report to, and some locations do not exist when checked online. Accepting the letters could effectively terminate our employment ourselves,” they told The PUNCH.
PENGASSAN President Festus Osifo said the union continues to engage the refinery to resolve the issues amicably. “We are pursuing dialogue to resolve outstanding concerns. Our goal is to settle matters at the negotiation table, avoiding another nationwide industrial action,” he said.
A senior management officer noted that while PENGASSAN can make demands, the company also has the right to make business decisions. “They have the privilege to ask. We also have the right to state our position,” the officer said.
Affected engineers expressed frustration, saying there was an initial agreement that their salaries would continue while negotiations progressed. “October salaries were reduced, and November salaries were unpaid. This feels like clear victimisation,” they said.
As talks continue, engineers face a difficult choice between losing income or accepting postings they consider unsafe, while PENGASSAN pushes for a negotiated resolution to prevent further industrial action.
The dispute remains unresolved, with both sides holding firm positions as negotiations with the Dangote Group continue.
