By Udeme Akpan, Victor Ahiuma-Young, Yinka Kolawole, Obas Esiedesa & Ediri Ejoh
Nigerians have been thrown into darkness as the strike embarked upon by the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, over disagreement with Dangote refinery has compelled distribution companies, DisCos, to engage in load shedding nationwide.
Electricity generation crashed below 3,500MW as at 6:00am yesterday, according to data obtained from the Nigerian Independent System Operator, NISO.
The load shedding came as both parties in the feud continued their fight yesterday, with Dangote refinery accusing PENGASSAN and its ally, the Trade Union Congress, TUC, of being mainly interested in the check-off dues of its members, rather than their welfare, while the unions said management of the refinery was not bigger than the laws of the land.
Sources at the DisCos, who spoke to Vanguard, said the sector had become more unstable than before due to the limited volume of gas supplied to the GenCos and transmitted to the DisCos by the Transmission Companies, TCN.
Another source involved in the generation who confirmed the development, said: “It looks more like an economic sabotage. We have never enjoyed our investment as investors. The challenges keep sending shocking waves of regret to us daily. ‘’My investments have gone down and couple with the lingering debt that we keep talking and hoping to receive to shore up investment. Honestly, I have not experienced this high level of absence of leadership in the nation’s economy before.”
NISO warns of grid collapse as thermal stations face shutdown
Also yesterday, the Nigerian Independent System Operator, NISO, raised alarm that the ongoing dispute between Dangote Refinery and PENGASSAN could threaten the stability of the national power grid.
In a statement, NISO explained that gas-fired thermal power stations, which supply the bulk of the country’s electricity, were at risk, following the strike declared by PENGASSAN.
“NISO wishes to draw attention to the potential implications of this action on the nation’s power sector. The national grid relies heavily on gas-fired generation, and any sustained disruption in gas supply would constrain generation capacity, affect system operations, and undermine the stability and reliability of electricity supply across the country.
“While NISO is considering measures to mitigate total grid collapse, we urge all parties involved to embrace dialogue and lawful mechanisms of dispute resolution in the overall interest of the economy and the well being of Nigerians at large.
“We reaffirm our commitment to ensuring a secure and reliable operation of the national grid and will continue to support wider efforts aimed at safeguarding energy security,’’ the state read.
The concern by NISO came shortly after the CEO of Association of Power Generation Companies; Dr Joy Ogaji, confirmed that thermal power generation companies have received notification from the Nigerian Gas Infrastructure Company, NGIC, to shut down the plants.
Impasse sends wrong signal to potential investors – MAN
Reacting to the development, the Manufacturers Association of Nigeria, MAN, warned that the current impasse between Dangote Refinery and PENGASSAN could send the wrong signal to potential investors.
Director General of MAN, Segun Ajayi-Kadir, who raised the alarm at a media briefing on the forthcoming 53rd Annual General Meeting, AGM, of the association yesterday in Lagos, said: “The signal we are sending to the international community is quite unfortunate.
“If a company as big as Dangote Refinery is being dealt with this way, with one trouble after the other – by regulatory agencies, truck drivers, and now PENGASSAN, for an investment of $20 billion, that is mind-boggling and it’s something we shouldn’t allow to fester.
“How would anyone who sees what has been done to Dangote Refinery want to come into this country and invest big?” Ajayi-Kadir advised the government to step in and ensure that the rule of law prevailed.
“There is a labour issue you have with an organisation, deal with it. There are processes of law, but you are shutting down the country just because you have a disagreement.
“We are having a situation where companies that rely on gas won’t be able to have gas. And the implications are very glaring. Factories will not be able to produce, they are likely to suffer cuts in terms of their production schedule.
‘’They will not be able to get their goods to the market and may eventually lose market share to imported products that are not suffering this kind of disruption.”
Nigeria’s petroleum economy cannot afford repeated shocks — Prof Wumi
On his part, Professor Emeritus of Petroleum Economics, Wumi Iledare, said: “Nigeria’s petroleum economy cannot afford repeated shocks. Strikes in critical energy infrastructure act like an invisible tax on the nation, raising costs for everyone and discouraging badly needed investment.
“Posterity, not prosperity, must guide our choices. The way forward is to keep essential energy flows stable, while resolving disputes through due process. No union, company or individual should be greater than the Nigerian state.”
Dangote Refinery, PENGASSAN’s verbal war continues amid reconciliatory meeting
Meanwhile, Dangote Refinery and PENGASSAN continued their verbal war yesterday, amid rescheduled reconciliatory meeting brokered by the federal government which ended in deadlock Monday night.
While Dangote Petroleum Refinery accused PENGASSAN, and the Trade Union Congress, TUC, of prioritising union dues and personal interests over workers’ welfare, the union in a swift reaction, said although the refinery’s investments were commendable, it shouldn’t change the country’s constitution because of the desire to maximise profits.
Dangote fumes
In a statement, Dangote Refinery stated: “PENGASSAN and TUC are two peas in a pod. They are twins from the same womb. Their interests do not extend beyond themselves and the oligarchs that run their affairs.
“The monthly check-off dues and other subscriptions that feed their lifestyles are the primary concern and interests of these oligarchs.
“At least, one of them admitted that much on national television very recently. During his interview, he purported that ‘the workers’ in Dangote Refinery ‘unionised . . . on Monday and we sent a letter to them at Dangote Refinery informing them of the decision and asking the organisation to remit their dues from source, on Tuesday’.
“If we must believe his account – and Dangote Refinery is not thereby admitting the accuracy of his account – the PENGASSAN oligarchs could not even wait for 24 hours after the purported unionisation before demanding for their monthly check-off dues.
“On account of these monthly check-off dues, PENGASSAN and its collaborators and co-conspirators are ready to plunge Nigeria and Nigerians into utter darkness and anarchy.”
It further alleged that neither PENGASSAN, TUC, nor allied unions, such as NUPENG have offered accountability for the funds collected from workers.
“Meanwhile, none of these unions – PENGASSAN, TUC, NUPENG and its other unnamed co-travellers – bothers to give an account to their members and the Nigerian public of these monthly check-off dues.’’
The refinery called on the federal government to resist what it described as attempts by union leaders to return Nigeria to “the dark ages” of energy insecurity and industrial sabotage.
PENGASSAN, TUC react
Responding on behalf of both unions, the Trade Union Congress, TUC, accused the management of Dangote Refinery and Petrochemicals of seeking to override Nigeria’s constitution to maximise profit, insisting that workers’ rights must not be sacrificed under any guise.
Chairman of TUC, Oyo State, and former National Financial Secretary of the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Bosun Olabiyi, said in a statement that while Nigerians remained grateful to Dangote for his bold investment in the oil and gas sector, it would be unacceptable for any employer to attempt to deny workers their fundamental right to organise.
Olabiyi said.: “Dangote has done well by investing over $20 billion in building the largest refinery in Africa, and Nigerians acknowledge the importance of that achievement. But the truth is simple: he did not invest as a charity. He invested to make profit, and that is legitimate.
‘’What is not legitimate is asking workers to seek his permission before exercising rights that the Nigerian Constitution and international conventions freely guarantee them.”
Citing Section 40 of the 1999 Constitution and International Labour Organisation, ILO, Conventions 87 and 98 on freedom of association and collective bargaining, Olabiyi stressed that unionisation was not negotiable.
“No investor is bigger than Nigerian law. The Constitution is clear, and Nigeria is a signatory to global conventions that protect workers.
‘’Dangote cannot ask for an exception because of his investment. If Total, ExxonMobil, Chevron, Agip, Shell, Halliburton, NNPC and NLNG have operated for decades in Nigeria with unions, there is no reason Dangote should be different,’’ he said.
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