Court Declares PENGASSAN Strike Against Dangote Refinery Illegal, Labels Crude Supply Disruption ‘Economic Sabotage’

Court Declares PENGASSAN Strike Against Dangote Refinery Illegal, Labels Crude Supply Disruption ‘Economic Sabotage’

An industrial court sitting in Garki, Abuja, has declared the nationwide strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against Dangote Petroleum Refinery illegal, ruling that the union failed to follow due process before commencing the industrial action.

In a landmark judgment delivered on Wednesday, the presiding judge, Justice E.D. Subilim, held that the strike, which disrupted operations at Africa’s largest refinery project, was null and void.

The court also ruled that PENGASSAN had no legal authority to prevent crude oil and gas suppliers from carrying out their contractual obligations to the refinery, describing the union’s actions in cutting off supplies as capable of causing significant economic damage.

Justice Subilim stated that the disruption of crude and gas supply amounted to an act of economic sabotage because it could force suppliers to breach legally binding agreements with the Dangote Refinery.

The suit was instituted by the refinery through its counsel, George Ibrahim (SAN), following the industrial dispute that erupted late last year.

The conflict was triggered by the dismissal of more than 800 Nigerian workers by the refinery. PENGASSAN had alleged that the affected employees were targeted because of their decision to join the union, a claim that sparked nationwide protests and threats to the refinery’s operations.

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As tensions escalated, the union declared a nationwide strike and moved to pressure suppliers by disrupting crude and gas deliveries to the multi-billion-dollar facility located in the Lekki Free Trade Zone, Lagos.

The dispute quickly drew national attention due to the strategic importance of the refinery to Nigeria’s energy security, fuel supply and foreign exchange earnings.

At the height of the crisis, the Federal Government intervened through a series of marathon negotiations involving the Office of the National Security Adviser and the Federal Ministry of Labour and Employment.

The intervention eventually led to the suspension of the strike on October 1, 2025, paving the way for further discussions while the matter remained before the court.

In his judgment, Justice Subilim emphasized that labour unions must operate within the confines of the law when pursuing industrial disputes, stressing that actions capable of disrupting critical national infrastructure and commercial contracts could not be justified outside established legal procedures.

However, the court declined Dangote Refinery’s claim for N50 billion in damages against PENGASSAN. The judge ruled that the company failed to provide sufficient justification for the amount sought, and consequently refused to award the compensation.

Other defendants in the suit included the Nigerian National Petroleum Company Limited (NNPC Ltd), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The ruling is expected to have far-reaching implications for labour relations in Nigeria’s oil and gas industry, particularly regarding the limits of union actions in disputes involving strategic national assets and critical energy infrastructure.

 

Court Declares PENGASSAN Strike Against Dangote Refinery Illegal, Labels Crude Supply Disruption ‘Economic Sabotage’