The industrial crisis at the $20 billion Dangote Petroleum Refinery escalated on Saturday as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) instructed its members nationwide to withdraw their services.
The move followed an emergency National Executive Council (NEC) meeting on September 27, 2025, after which the union accused the refinery of violating Nigeria’s labour laws, the Constitution, and International Labour Organisation (ILO) conventions by sacking workers who joined the association.
PENGASSAN’s Allegations: “An Affront to All Nigerian Workers”
In a circular signed by General Secretary Lumumba Okugbawa, the NEC alleged that the refinery had dismissed over 800 Nigerian staff and replaced them with more than 2,000 Indian workers.
Calling the action “an affront to all workers in Nigeria,” the union directed an immediate withdrawal of services:
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Field locations: PENGASSAN members were instructed to down tools from 06:00hrs on Sunday, September 28. This includes control room operations, panel operations, and outfield personnel.
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Nationwide shutdown: From 00:01 on Monday, September 29, members in all offices, companies, institutions, and agencies are to cease work.
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Energy supply disruption: All processes involving gas and crude supply to Dangote Refinery were ordered to be cut off, with international oil company (IOC) branches directed to ramp down production and halt supply to the facility.
The NEC further declared 24-hour prayer vigils across field locations and vowed that the strike would continue until the sacked workers were reinstated. “An injury to one is an injury to all. No man is bigger than our country,” the circular said.
Dangote Refinery’s Defence: “No Mass Sack, Only Reorganisation”
Management of the 650,000-barrel-per-day refinery denied PENGASSAN’s claims, insisting that no mass sack had taken place. Instead, the company described its actions as part of an internal reorganisation to improve efficiency and tackle sabotage.
Dangote Refinery maintained that the majority of its workforce remains Nigerian, stressing that “over 3,000 Nigerians are still employed,” despite reports of dismissed staff.
In a statement cited by PUNCH Online, the company argued that restructuring was necessary after “acts of sabotage that threatened the operational safety of the facility.”
Growing Rift Between Dangote and Labour Unions
The latest confrontation comes on the heels of earlier disputes between Dangote Refinery and labour unions, including the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), over workers’ rights and safety standards.
Analysts note that the conflict reflects deeper tensions over the balance of power between Nigeria’s most ambitious private-sector energy project and the country’s organised labour movement:
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For the unions, the refinery’s labour policies are a test case for how Nigerian workers are treated in large-scale private industrial ventures.
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For Dangote, union resistance is a potential obstacle to the company’s strategy of tightly controlled operations and efficiency in an environment where global investors and creditors are watching.
National and Market Implications
If fully implemented, PENGASSAN’s directive risks:
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Disrupting crude and gas supply to the refinery, undermining its output.
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Triggering fuel shortages downstream, given that the refinery plays a central role in Nigeria’s petrol supply reform.
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Prompting government intervention, as the standoff poses risks not only to labour stability but also to energy security and foreign exchange management.
Given the refinery’s importance to the Tinubu administration’s efforts to stabilise Nigeria’s fuel market, observers warn that the dispute could become a matter of national urgency if not swiftly resolved.
The showdown between PENGASSAN and Dangote Refinery has now escalated from targeted supply disruptions to a nationwide strike threat. Whether this becomes a short-lived standoff or a prolonged disruption will depend on how quickly government, unions, and management can find common ground.
For now, Nigeria’s largest industrial project faces its sternest test yet—not in its engineering, but in its labour relations.