Lagos, 1 October 2025 — Tensions between Africa’s largest refinery and Nigeria’s oil and gas unions have intensified after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) called for a nationwide strike in response to mass layoffs at the 650,000 barrels-per-day Dangote refinery.
The dispute erupted when the refinery dismissed more than 800 unionised workers, a move the union described as unlawful and retaliatory. PENGASSAN accused management of replacing Nigerian staff with foreign workers, a claim the company has denied, insisting the dismissals were part of a wider restructuring.
The fallout has already disrupted operations at Lekki Port, where union members blocked access, halting crude and product shipments. Fuel supplies across the country are beginning to feel the strain, raising fears of shortages in Africa’s largest oil producer.
With the refinery representing a cornerstone of Nigeria’s energy ambitions, the standoff has drawn government intervention. Officials from the Labour Ministry have begun mediating between Dangote Petroleum and union leaders in an effort to prevent a prolonged shutdown that could destabilise fuel markets and broader economic activity.
Industry analysts warn that a nationwide strike could paralyse oil and gas operations across Nigeria, compounding existing challenges in the sector. “The scale of disruption from a full strike would be unprecedented, given the refinery’s central role in Nigeria’s energy supply chain,” one Lagos-based energy consultant noted.
The Dangote refinery, inaugurated in 2023 at a cost of $20 billion, was hailed as a transformative project for Nigeria’s energy independence. Its current labour dispute, however, underscores the fragility of industrial relations in a sector critical to the country’s economy.
Dangote-Refinery-picture-by-Nnamdi-Micheal-OBI
