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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 on Monday to stop gas supplies to the Dangote Petroleum Refinery. This escalated a labour dispute that had been sparked by the dismissal hundreds of Nigerian workers.

The Petroleum and Natural Gas Senior Staff Association of Nigeria, (PENGASSAN), has directed all its branches in major oil companies to stop crude and natural gas deliveries at the refinery immediately.

According to a letter from September 26, the union accused Dangote of "misinformation" and "propaganda" rather than addressing the alleged wrong disengagement of unionised workers.

"The crude oil supply valves should be closed." In the directive, PENGASSAN's General Secretary Lumumba Okugbawa stated that all loading operations for vessels heading there must be stopped immediately. The directive was issued just days after Dangote refinery fired Nigerian workers and replaced them, according to reports, with foreigners, mostly Indians. The company claimed that the dismissals were a part of a reorganisation to improve safety and operational efficiency.

Dangote Refinery didn't immediately respond to an inquiry for a comment about the PENGASSAN Letter. This dispute has increased pressure on the $20-billion refinery that announced it would stop selling petrol in naira as of September 28 due to shortages in crude oil and mismatches with foreign exchange rates. This has led to concerns over rising fuel costs and a further strain on Nigeria’s currency.

PENGASSAN has ordered oil company union chapter chairs to "report immediately the progress of the Directive", signaling a coordinated shut down that could disrupt fuel supply in Africa's largest country. (Reporting and Writing by Ben Ezeamalu, Editing by Toby Chopra).

(source: Reuters)