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Nationwide strike in Nigeria threatens oil supply after mass layoffs at Dangote refinery

The offices of Nigeria's oil regulator and state oil company were shuttered by a nationwide strike launched by the national oil workers' union after Dangote refinery dismissed more than 800 of its members, union officials said.
Image credit: Reuters
Image credit: Reuters

The strike, begun on Monday, has escalated tension in Africa’s top oil producer, with a legal and industrial standoff that could disrupt regional fuel supply and trade, particularly to countries relying on refined products from Nigeria.

The workers at the privately-owned Dangote Oil Refinery, Africa's largest, were fired for unionising, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said in a statement.

Dangote oil refinery officials said at the time the dismissals were part of a staff reorganisation and accused those affected of acts of sabotage.

Talks mediated by government officials failed to resolve the dispute, and the refinery secured a court injunction barring the union from obstructing crude and gas supply to it.

PENGASSAN said the notice had not been formally served on the union.

"Court orders are served via bailiffs, not through social media," union executive Lumumba Okugbawa said.

The strike has led to the closure of the offices of the NNPC Limited, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In a statement on Sunday, the regulator called for an amicable end to the dispute.

NNPC Limited told Reuters it was committed to maintaining a safe, stable and inclusive operating environment.

"We are closely monitoring the situation and remain engaged with relevant stakeholders to encourage a constructive resolution," spokesperson Andy Odeh said in a statement.

Analysts fear that if the situation worsens and other unions were to join, the action could paralyse activities at oil fields, disrupt the free flow of products and cause chaos at petrol stations when trucks are grounded.

The refinery owned by Africa's richest man, Aliko Dangote, began operations this year and has been touted as a game-changer for Nigeria’s fuel imports.

The dispute threatens to undermine investor confidence and raises questions about labour protections in Nigeria’s private sector, however.

Source: Reuters

Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day.

Go to: https://www.reuters.com/
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