The Dangote Petroleum Refinery has dismissed a number of its Nigerian workers in what management described as a “total reorganisation” of the plant, sparking a labour dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
According to reports, the controversial development followed a memo dated September 25, 2025, signed by the Chief General Manager of Human Asset Management, Femi Adekunle. The document directed affected workers to surrender all company property to their line managers and obtain exit clearance, while the finance department was instructed to compute entitlements for settlement in line with contractual terms.
TJ News Nigeria reports that the incident has generated heated debate across the oil and gas sector, as labour unions allege that the dismissals were directly linked to recent unionisation efforts by refinery staff.
The Allegations by PENGASSAN
PENGASSAN, one of Nigeria’s foremost energy sector unions, has accused the Dangote Refinery of victimising its members for exercising their constitutional right to freedom of association.
Union officials claimed that more than 90 percent of the Nigerian staff had joined PENGASSAN less than 24 hours before the sack letters were issued. The union alleged that:
- Nigerian staff who joined the association were denied access to the refinery premises.
- Staff buses were withdrawn, compelling workers to bear the burden of transportation.
- The decision to terminate Nigerian workers while retaining expatriates amounted to discrimination.
PENGASSAN leadership further alleged that the dismissals were designed to frustrate labour rights and weaken collective bargaining at Africa’s largest oil refinery.
Dangote Refinery’s Position
In contrast, management has denied that all Nigerian workers were affected. Company representatives insist the action was limited to “some workers” following internal investigations into alleged sabotage in certain refinery units.
Officials maintain that the dismissals were part of a restructuring exercise necessary to safeguard refinery operations. They also argue that workers may be reabsorbed after the completion of reorganisation processes.
According to Dangote Refinery, its decision was not aimed at punishing employees for union membership but rather at addressing operational risks. The company emphasised that both Nigerian and expatriate staff remain on its payroll.
Independent Media Verification
International news agencies have confirmed the existence of the dismissal memo but could not immediately verify the number of affected workers.
- Reuters reported that Dangote is “firing some Nigerian workers,” though the scale and exact figures remain unclear.
- Nigerian newspapers such as Punch and The Guardian also highlighted conflicting accounts between union leaders and company officials.
- Daily Post and Sahara Reporters cited union claims that virtually all Nigerian workers were affected.
This discrepancy underscores the uncertainty surrounding the true scope of the reorganisation exercise.
Legal and Constitutional Implications
Labour experts point out that if the dismissals are found to be linked to union activities, the move could breach Section 40 of the 1999 Constitution, which guarantees freedom of association, including the right to form or join trade unions.
In addition, Nigeria’s labour laws, including the Trade Unions Act and the Labour Act, protect employees from victimisation due to union membership. Any infringement may expose the company to legal challenges, industrial actions, and reputational damage.
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PENGASSAN has already indicated its intention to push for the recall of the dismissed workers and may escalate the dispute to the Ministry of Labour and Employment or the National Industrial Court.
Broader Economic Context
The Dangote Refinery, with a 650,000 barrels-per-day capacity, is regarded as one of the most significant energy projects in Africa. Commissioned in 2024, it was expected to reduce Nigeria’s dependence on imported refined petroleum products and save billions of dollars in foreign exchange.
However, disputes such as this raise concerns about:
- Labour relations – strained ties between management and unions could disrupt operations.
- National supply security – disruptions in refinery output may impact fuel availability and pricing.
- Investor confidence – global investors often monitor how host countries manage industrial disputes.
Analysts note that for a project of such strategic importance, prolonged labour unrest could ripple across Nigeria’s energy sector and economy.
What Happens Next
At the time of writing, PENGASSAN is mobilising support and considering formal petitions to government agencies. The union insists it will pursue reinstatement of affected workers, while the refinery maintains its right to reorganise operations in response to internal challenges.
The outcome of this dispute may set a precedent for labour rights within Nigeria’s private energy sector, especially as more multinational and indigenous companies expand operations in the country.
For now, uncertainty remains about whether the refinery will recall the affected staff or whether the matter will escalate into a prolonged legal and industrial confrontation.
