Nigeria’s Dangote Refinery Sacks Staff

September 26, 2025

In what is emerging as one of the most dramatic labor-management clashes in Nigeria’s recent history, the Dangote Petroleum Refinery has reportedly terminated the employment of some of its Nigerian workers following a bitter standoff with union representatives. The development has sent shockwaves across the oil and gas sector, raising questions about labor rights, corporate governance, and the future of Africa’s largest refinery project.

The Shocking Announcement

According to reports first highlighted by political commentator Imran Wakili on X (formerly Twitter), the mass dismissal occurred less than 24 hours after nearly 90% of the Nigerian workforce at the refinery joined the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

The company later issued an internal memo dated September 25, 2025, signed by Femi Adekunle, the Chief General Manager of Human Asset Management. The memo cited “total reorganisation” and “reported cases of sabotage” in some refinery units as reasons for the drastic measure.

Affected staff were directed to return all company property, obtain clearance from their supervisors, and await payment of entitlements in line with their employment contracts. The finance department was ordered to fast-track severance and outstanding benefits.

Unionisation at the Heart of the Crisis

The Dangote Refinery, often hailed as a game-changer for Nigeria’s energy sector, has been embroiled in a long-running dispute with PENGASSAN over workers’ rights to unionise.

For months, refinery staff had expressed frustration over what they described as “hostile” attitudes from management towards union activities. Allegations included attempts to intimidate workers, refusal to recognise elected representatives, and deliberate stalling of negotiations.

PENGASSAN had been pushing for collective bargaining agreements covering wages, safety standards, and welfare packages. Sources within the union claim that Dangote management saw unionisation as a direct threat to its control and profitability.

“Sabotage” Allegations

In the official memo, management alleged that certain refinery units had been deliberately tampered with, slowing down operations. While details remain unclear, the memo strongly implied that acts of sabotage were linked to the ongoing labour agitation.

Union leaders have, however, dismissed these allegations as a smokescreen to justify the mass sackings. One official, who spoke anonymously, described the accusations as “a calculated attempt to criminalise legitimate union activities.”

The Human Cost

For thousands of Nigerian workers, the announcement represents not just the loss of employment but also dashed hopes. The refinery, which officially commenced partial operations earlier this year, had been touted as a beacon of job creation, offering opportunities in engineering, operations, logistics, and administration.

“I relocated my entire family from Port Harcourt to Lagos because I believed in this refinery project,” said one former staff member in an emotional interview. “Now, in one day, all of us are being told to go home. How do we start again?”

Another worker described the mood inside the plant as “funereal,” with colleagues hugging one another and packing their belongings in disbelief.

Wider Implications for Nigeria’s Oil and Gas Sector

The Dangote Refinery, with its 650,000 barrels per day capacity, is the largest single-train refinery in the world. Its successful operation is seen as crucial to reducing Nigeria’s crippling dependence on imported refined petroleum products.

Analysts now warn that the decision to sack Nigerian workers could have ripple effects across the industry:

• Supply Risks: Disruptions to operations could delay the refinery’s full capacity rollout, worsening Nigeria’s fuel import bills.
• Investor Confidence: International observers may view the dispute as evidence of instability in Nigeria’s labor relations environment.
• Union Strength: The move could embolden or weaken organised labor depending on how the government and public respond.

Government and Public Reaction

As of press time, neither the Ministry of Labour nor the Presidency had issued an official response. However, pressure is mounting on the government to intervene.

Civil society organisations and labour activists have begun calling for an immediate investigation. “This is an attack not just on refinery workers but on the fundamental right of Nigerians to unionise,” said human rights lawyer Chinedu Obiora.

On social media, reactions have been polarised. While some Nigerians accuse the refinery of high-handedness, others argue that sabotage—if proven—justifies decisive action.

What Next for PENGASSAN?

PENGASSAN has promised to challenge the mass sackings through legal and industrial means. A senior official hinted at possible nationwide strikes if the refinery refuses to reinstate the dismissed workers.

“Our constitution and labour laws are clear—workers have the right to freely associate,” the official said. “This battle is not just about Dangote Refinery; it is about setting a dangerous precedent in Nigeria’s labour landscape.”

Dangote Refinery’s Side of the Story

While the memo suggests that management acted in response to sabotage and operational threats, the refinery’s media department has yet to release a comprehensive public statement.

Observers believe Dangote Industries will likely frame the mass layoff as a temporary “reorganisation” rather than permanent disengagement. Some insiders speculate that the company may rehire a smaller number of workers under new terms, possibly bringing in more expatriates to fill critical roles.

A History of Tense Employer-Union Relations

This is not the first time the Dangote Group has been accused of hostility towards labour unions. Previous disputes in its cement and sugar subsidiaries were marked by strikes, picketing, and court cases.

Labour experts note that Nigerian corporate giants often resist unionisation out of fear of higher wage demands, stricter safety standards, and loss of managerial autonomy.

Possible Outcomes

Several scenarios could emerge in the coming weeks:

1. Negotiated Settlement – Government intervention forces Dangote Refinery to recall workers and enter into formal negotiations with PENGASSAN.
2. Legal Showdown – PENGASSAN pursues litigation, with potential reinstatement orders from industrial courts.
3. Escalation – PENGASSAN mobilises strikes across Nigeria’s oil and gas sector, crippling fuel supply and pressuring the government to act.
4. Management Entrenchment – The refinery doubles down, hires expatriates, and sidelines Nigerian labour unions altogether.

The Dangote Refinery mass sack is more than an internal corporate decision—it is a flashpoint for the balance of power between Nigerian workers and corporate giants. With livelihoods on the line and the refinery’s national significance, the outcome of this dispute will resonate far beyond Lekki, where the refinery is located.

Whether this crisis ends in reconciliation, litigation, or escalation, it has already exposed the fragility of labour relations in Nigeria’s most ambitious industrial project. For thousands of Nigerian workers who believed in the refinery dream, September 25, 2025, will remain a day of bitter disappointment.