Background to the Dismissals
On September 25, 2025, Dangote Petroleum Refinery and Petrochemicals sent a memo to roughly 800 Nigerian employees announcing immediate termination. The notice, signed by Chief General Manager of Human Asset Management Femi Adekunle, linked the sackings to a series of sabotage reports that the company said threatened safety and efficiency.
Less than a day before the memo, the affected workers had officially joined the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). Union President Festus Osifo confirmed the firings to the Daily Post, noting that the letter arrived late on Wednesday night. He warned that the union would seek to recall every dismissed worker.
PENGASSAN’s General Secretary Lumumba Okugbawa went further, accusing Dangote of double standards. He pointed out that while all Nigerian staff were being let go, more than 2,000 expatriates—mostly from India—were kept on the payroll. The union has since announced plans for a picket line and is demanding the reinstatement of the workers.
Dangote’s management pushed back, saying the restructuring was a safety‑driven decision, not a retaliation for union activity. A company statement emphasized that over 3,000 Nigerians still work at the refinery and that the firm respects internationally recognized labor rights, including the freedom to join unions.
The termination memo instructed workers to hand over company property, obtain exit clearance from their line managers, and wait for the finance department to calculate final benefits. Management also thanked the dismissed staff for their service, a line that many union members found ironic given the circumstances.
Potential Impact on Nigeria’s Fuel Market
The labor dispute is unfolding at a time when the refinery has paused the sale of petrol in naira. The pause has already created uncertainty about fuel pricing, and the sudden loss of hundreds of local staff adds another layer of risk.
Industry analysts warn that the twin pressures of labor unrest and the naira‑sale suspension could destabilise fuel supply. One commentator noted that Dangote’s refinery has been a key factor in keeping gasoline prices steady since it began operations. If the refinery’s output is disrupted by strikes or further workforce reductions, consumers could see higher pump prices and possible shortages.
Federal authorities have previously intervened in a related dispute when the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) called a strike in solidarity. That strike was temporarily suspended after the government stepped in, and a court injunction briefly barred unions from striking at the refinery. The injunction has since expired, leaving the door open for fresh industrial action.
Beyond pricing, the situation raises questions about Nigeria’s broader energy strategy. The refinery is seen as a cornerstone of the country’s push for energy independence, reducing reliance on imported crude. Labor stability is essential for the plant to meet its projected output of 650,000 barrels per day. Any prolonged downtime could force the government to lean again on imports, undermining the independence goal.
Local communities near the refinery are also watching closely. The plant has promised thousands of jobs and development projects in the surrounding area. Dismissing a large number of Nigerian workers could erode public support, especially if the perceived favoritism toward foreign staff continues.
For now, the refinery’s management says it will keep working with regulators and stakeholders to maintain safety and transparency. The union, meanwhile, is preparing to mobilise its members and push for a legal challenge to the dismissals. The next weeks will likely determine whether the dispute stays on paper or spills onto the factory floor, with direct consequences for Nigeria’s fuel market and its broader economic outlook.