Dangote Versus PENGASSAN: What Matters is the Ordinary Nigerian
By Yakub Aliyu
The face-off between Dangote Refinery and PENGASSAN, a Union of senior workers in the petroleum industry, is not only about industrial relations. It is about the future developmental trajectory of the Nigerian economy, and what kind of economy we want to build.
Some powerful forces would prefer quick accumulation from global trading and imports of commodities in the name of liberalization. Others, however, are working hard to build the domestic base of the economy so that Nigeria will not remain perpetually a chronically dependent economy, exporting jobs and harvesting massive unemployment of its youth. They want to see Nigeria also as exporter of manufactured goods which historically has been the foundation of the “wealth of nations”. Like Aliko Dangote they prefer to invest in building real factories here at home.
In the 1980s and 1990s intellectual argued about this a lot. It would seem we are back there again. Will Nigerians economy remain unproductive and bereft of manufacturing and technological base after 65 years of independence or will it pick the gauntlet and follow the path of its peers in Asia and Latin America that have now transformed into manufacturing hubs, generating jobs for their citizens, and exporting all variety goods across the globe.
Why this matters to ordinary people?
When fuel is processed in Nigeria, we use fewer dollars. That helps the value of the naira. Transport costs and food inflation will moderate cost of living crisis now afflicting workers and low income earners. .
When a refinery stops work or crude and gas supply is blocked, queues will appear, prices will rise, and small businesses will suffer. That is the simple truth.
PENGASSAN’s complaint and the right way to solve it
The union says workers were wrongly sacked and that foreign staff are taking jobs. The refinery management countered that it acted for safety and performance. This is a straightforward matter. Let us test both sides with facts, not threats.
Nigeria already has a clear framework for addressing these issues. The Ministry of Labour should handle negotiations. If talks fail, go to the National Industrial Court. The content regulator should set and monitor local hiring targets. The point is that in a democracy we must follow the law. We should not turn fuel and power into hostages.
Why presidential arbitration is a bad idea here
If, as it was reported in the media, the Presidency becomes the arbiter in this matter, the whole issue will become politicized, instead of following due process. Regulators will step back. Both sides will try to win by noise. As a consequence, markets will panic at every rumour. We have seen how one comment can shake prices. Let institutions do their work. That is how a serious country behaves.
The bigger pull and push: global interest vs national development
Look at food. We are now importing a lot again. It looks easy at first, but it kills local farmers, weakens the naira, and increases poverty. The same thing can happen with fuel. If we live by imports and quick fixes, traders get rich while citizens pay more. If we build capacity here, we gain skills, stable jobs, and pride in our work.
A fair deal that protects workers and the public
National development does not mean a free hand for any private company. However, we must be careful, because a refinery of Dangote’s scale is now in the class of “too big to fail”. The economy cannot with stand the shock, forget the propaganda going on. Though private it has strong public interest dimension. Else where, it will be protected by any means necessary.
Lest we be misunderstood. What we are suggesting here is a strict deal that everybody can see and have confidence in.
Thus, we must handle the case within the parameters of the law. Start with Labour Ministry negotiations. If needed, go to court. Obey any interim order.
It is primitive to use crude and gas supply to fight. It sets dangerous precedent. We must keep energy flowing while the case runs, as long as safety in the refinery is guaranteed.
The Dangote refinery should on its part also embrace transparency: publish a clear local employment plan, show how many Nigerians will be trained and promoted by skill level and by date, tie any government support to meeting these targets, and audit results every quarter.
In addition, give fair hearings to the dismissed. If there is proof of serious misconduct, show it to an independent panel quickly. If there is no proof, reinstate and pay what is due. If there is proof, pay proper severance and document lessons for safety.
In the same vein, communication flow is vital. Any change to pricing or offtake should be announced clearly by the proper authorities. No surprises.
Answering a fair allegation
Some people fear one private refinery has too much power. The worry makes sense. But the answer is not to cripple or destroy the asset.
The appropriate answer should be sound regulation and more competition. In this regard, the authourities should allocate local crude to refineries by clear rules.
Price it fairly. Make offtake plans predictable. Fix government owned refineries if possible and support other credible private projects initiatives. More strong players will protect the public interest.
A message to all sides
We must bear in mind that shortages do not punish big men, the elite, as much as they punish drivers, traders, farmers, and small factories. During past crises, elite didn’t suffer. Ordinary people suffered. Let us not repeat that story.
The choice before us
We can slide back to an import economy where politics shares the gains and the poor carry the pain. Or we can build a production economy where rules guide everyone and value stays at home. This is historic task of labour unions in developing countries not undermining the economy by taking sides with globalist forces whose focus is the continued underdelopment of our great country. Labour must not only protect jobs, it must protect the nation at the same time.
Aliyu, an economist and alumnus of Oxford University UK, was former editor of the New Nigerian