The Nigerian government has assured steady fuel supply despite the PENGASSAN-Dangote Refinery dispute, reaffirming the continuation of the crude oil-for-Naira initiative.
The Nigerian government has assured citizens of a steady supply of refined petroleum products despite ongoing tensions between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Refinery.
In a statement released on Sunday by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, the government confirmed that the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative met to address recent concerns in the downstream oil sector.
Meeting Outcomes
The meeting, chaired by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, reviewed two key issues:
- The purported suspension of the Naira-for-crude oil arrangement by the Dangote Refinery, which has since been resolved.
- Concerns raised by PENGASSAN regarding the refinery’s operations.
The session was attended by top government officials, including Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, FIRS Chairman Zacch Adedeji, representatives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPC Ltd., the Central Bank of Nigeria (CBN), Afreximbank, and the Dangote Refinery.
The committee reaffirmed that there will be no disruption in the supply of refined petroleum products nationwide. It also assured that all outstanding issues between PENGASSAN and Dangote Refinery are being addressed “with urgency and in good faith.”
Government’s Position
The federal government emphasized its commitment to:
- Ensuring energy security
- Protecting consumers
- Maintaining stability in the domestic petroleum products market
The statement further clarified that the crude oil-for-Naira initiative will continue, dismissing fears of suspension.
Background to the Dispute
PENGASSAN had earlier directed its members to disrupt activities at the Dangote Refinery by blocking gas supply, citing the alleged sacking of union members by the refinery’s management. The union also accused the refinery of spreading misinformation to justify its actions.
In response, the Dangote Refinery described PENGASSAN’s directive as illegal, warning that the union had no legal right to interfere with its contracts with third-party vendors for gas and crude oil supply. The refinery urged the federal government and security agencies to intervene, stressing that PENGASSAN’s actions could inflict serious harm on the Nigerian economy and citizens.
Legislative Intervention
On Saturday, the House of Representatives Committee on Petroleum Resources (Downstream) appealed to PENGASSAN to suspend its directive to cut off gas and crude oil supply to the refinery, urging dialogue as the best path forward.
