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Nigeria's oil union stops gas supply to Dangote Refinery due to mass dismissals

Nigeria's oil union stops gas supply to Dangote Refinery due to mass dismissals

The Nigerian oil workers' union ordered its members to stop gas supplies to the Dangote Petroleum Refinery. This escalated a labour conflict after hundreds of workers had been dismissed, and threatened to disrupt fuel supplies in Africa's largest nation.

The Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN), has directed major oil companies to immediately stop crude and natural gas deliveries to refineries.

According to a letter from September 26, the union accused Dangote of "misinformation" and "propaganda" rather than addressing allegations of wrongfully disengaging unionised employees.

Dangote Refinery announced on Friday that it had fired a few workers citing sabotage at various units. This sparked criticism by an oil workers union who claimed that over 800 Nigerians were fired and replaced with foreigners, mostly from India.

DISPUTE ADDS FURTHER PRESSURE ON DANGOTE REFINERY

PENGASSAN's General Secretary Lumumba OKugbawa said that crude oil valves should be closed and vessels heading there immediately stopped being loaded.

Dangote Refinery stated that the dismissals are part of an organisational reorganization to improve safety, efficiency and productivity.

It stated late Saturday that "absolutely, no law" gives PENGASSAN authority to order its branches to "cut off" gas and crude oil supply to Dangote Refinery at all or even to 'interfere' or disrupt their contracts with suppliers and vendors.

This dispute puts pressure on the $20-billion refinery that announced it would stop selling petrol in naira as of September 28th due to a shortage of crude and mismatches with foreign exchange rates. This has led to concerns over fuel prices rising and further pressure on Nigeria's currency.

PENGASSAN has said that chairs of union chapters in oil majors should "report immediately the progress of the Directive", signaling a coordinated shut down could disrupt the fuel supply of the country. Reporting by Tife owolabi, Isaac Anyaogu and Ben Ezeamalu. Editing by Toby Chopra, Bernadette Baum and Bernadette Chopra.

(source: Reuters)