The House of Representatives Committee on Downstream Petroleum Resources has condemned the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over its directive to halt gas and crude oil supply to Dangote Refinery, describing the move as hasty, destabilising, and capable of scaring away investors.
Committee chairman, Hon. Ikenga Imo Ugochinyere, speaking at a press briefing in Lagos, warned that the industrial action ordered by PENGASSAN without exhausting legally established procedures, poses a grave threat to Nigeria’s energy security, economic stability, and investor confidence.
He therefore called on the protesting union to suspend its shutdown order immediately and allow dialogue to guide the resolution of grievances.
Committee Proposes Roundtable Talks
Ugochinyere disclosed that the downstream committee has initiated steps to convene a stability roundtable, bringing together critical stakeholders including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Ministry of Labour, PENGASSAN, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and Dangote Refinery.
The lawmaker emphasised that such dialogue, presided over by the committee, would provide a sustainable and peaceful resolution to issues surrounding workers’ rights, retrenchment claims, and the operational autonomy of private companies.
According to him, the shutdown directive was issued in haste and undermines due process, noting that “this decision will scare away foreign investors who will be worried that grievances in the sector are not resolved through established legal and regulatory frameworks.”
He urged PENGASSAN to immediately lift the order and restore gas and crude supply to the Dangote Refinery in the interest of the nation.
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At the briefing, Ugochinyere lamented the likely economic consequences of the industrial crisis, stressing that the move against Dangote Refinery—Nigeria’s most ambitious indigenous refining project—could derail ongoing efforts to build a competitive and commercially viable downstream sector.
“The industrial crisis which among others led to the order for cut-off of supply to Dangote Refinery will destabilise downstream stability and scare investors away from the country. The directive was made in a haste without all necessary avenues for addressing grievances exhausted,” he said.
He added that peaceful resolution was the best path forward, warning that continued hostilities risk worsening Nigeria’s already delicate energy situation.
As part of the intervention, the Committee announced the constitution of a sub-committee chaired by Hon. Akin Rotimi, with Hon. Midala Usman, Hon. Billy Osawaru, and Hon. Mathew Nwaogu as members.
The sub-committee has been tasked with harmonising positions on contentious issues fueling the crisis, including workers’ rights to union membership, alleged retrenchments, and the extent of private companies’ authority in structuring their operations.
Ugochinyere said the sub-committee has 14 days to conclude its assignment and produce a workable framework for resolving the disputes. He also directed all contending parties; PENGASSAN, NUPENG, Dangote Refinery, and regulators to submit detailed information on the grievances within the period.
“This committee wants to come out with an informed way forward that will help to resolve all the issues and ensure stability in the downstream sector,” he said.
The downstream committee reiterated that while it acknowledges PENGASSAN’s concerns, resorting to abrupt supply cuts without adequate notice or adherence to due process sets a dangerous precedent for industrial relations in the oil and gas sector.
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“While this committee acknowledged the concerns of PENGASSAN, however it does not approve of the action embarked upon by the union with their decision to order stoppage of gas supply to Dangote Refinery without notice. This action is hasty and has multiplier effects on the energy needs of Nigerians, likely damage to a delicate private sector investment, and destabilisation of the search for sustainable peace being championed by the committee,” Ugochinyere stressed.
He appealed to the oil and gas workers to embrace negotiation, dialogue, and alternative dispute resolution mechanisms recognised under labour laws, instead of actions that could trigger economic disruption.
Ugochinyere maintained that the National Assembly, through its oversight powers, remains committed to fostering industrial peace and building a downstream petroleum sector that is competitive, worker-friendly, and investor-attractive.
“The nation cannot afford a destabilised downstream sector. We urge all parties to sheath their swords, allow supply to resume, and work with the committee to find lasting solutions,” he concluded
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