The Marshal | September 27, 2025
A major showdown is brewing between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Dangote Petroleum Refinery and Petrochemicals, as the oil workers’ union has vowed to storm the $20 billion refinery following the alleged dismissal of over 800 Nigerian employees.
The refinery, located in Lekki, Lagos State, is Africa’s largest, with a capacity of 650,000 barrels per day. It was commissioned with fanfare and positioned as a game-changer for Nigeria’s energy independence. But the latest controversy has sparked outrage, threatening industrial harmony in the nation’s petroleum sector.
PENGASSAN Alleges Retaliation Against Workers
In a strongly worded statement, PENGASSAN General Secretary, Lumumba Okugbawa, accused the Dangote Refinery of deliberately targeting employees who had recently completed the process of unionisation in compliance with Federal Government directives.
“As of Thursday, over 800 Nigerian workers voluntarily joined the union. Management identified them through a headcount, and by the next day, letters of dismissal were issued,” Okugbawa alleged.
He claimed the dismissed workers were replaced with over 2,000 Indian expatriates, a development the union described as anti-labour, discriminatory, and a direct assault on Nigerian workers.
“In this Nigeria, you’re firing our citizens and retaining expatriates who contribute far less. Is that what we call reorganisation? We cannot fold our arms while Nigerians are humiliated in their own country,” he declared.
Dangote Refinery Denies Mass Sack
The refinery, however, denied reports of mass layoffs, insisting that only “a few workers” were affected. According to management, the disengagement was part of a wider reorganisation strategy to address repeated sabotage incidents that had raised major safety concerns.
A letter issued to affected staff read:
> “In view of the many recent cases of reported sabotage in different units of the refinery leading to major safety concerns, management is constrained to carry out a total reorganisation of the plant. Consequently, your services are no longer required effective from Thursday, September 25, 2025. Kindly surrender all company property to your line manager and obtain clearance accordingly.”
The refinery further assured the public that operations remain unaffected and that workers uninvolved in sabotage have no reason to fear.
Court Injunction and Union’s Response
Dangote Refinery is reported to have obtained a court injunction against picketing or any form of industrial action within its premises. But PENGASSAN says it will not be intimidated.
“The National Executive Council of the union will meet to decide our next steps. We will resist injustice, even if it means mass protests across the facility and government institutions,” Okugbawa said.
Labour experts warn that the dispute could escalate if urgent dialogue is not initiated, given the sensitive nature of the refinery as a strategic national asset.
Nigerians React to Controversy
The development has generated heated reactions among Nigerians, with many on social media accusing the refinery of “labour imperialism” and demanding Federal Government intervention.
Some citizens expressed shock that a refinery celebrated as a national pride could allegedly sideline Nigerian workers in favour of expatriates. Others called for immediate investigations by the Ministry of Labour and Employment, the Nigerian Content Development and Monitoring Board (NCDMB), and the National Assembly.
Possible Economic Impact
Analysts say prolonged labour unrest could negatively impact the refinery’s production schedule, which is expected to reduce Nigeria’s dependence on imported refined petroleum products. The refinery is projected to save the country billions of dollars annually in foreign exchange and stabilise domestic fuel supply.
But with PENGASSAN threatening strikes and picketing, there are concerns that delays in output could affect fuel availability, investor confidence, and Nigeria’s broader economic stability.
Call for Government Mediation
Stakeholders are urging President Bola Tinubu’s administration to intervene swiftly to avert a full-blown crisis. They argue that while management has the right to enforce discipline and reorganisation, such actions must not undermine the rights of Nigerian workers or violate local content policies.
“This issue goes beyond Dangote Refinery. It is about protecting Nigerian jobs, ensuring fairness, and preventing an unhealthy precedent where expatriates replace citizens in their own country,” a labour rights activist said.
Conclusion
As tension mounts, the Dangote Refinery finds itself at the centre of a labour storm that could define its relationship with host communities and Nigerian workers. While management insists the sack was a safety measure, PENGASSAN maintains it was retaliation for unionisation.
The coming days will determine whether dialogue prevails or if the refinery, a beacon of industrial hope, becomes the stage for Nigeria’s next major labour crisis.
