A major labour crisis is unfolding in Nigeria’s oil and gas sector as reports confirm that Dangote Refinery, Africa’s largest petrochemical facility, has terminated the employment of all its Nigerian workers. The development has triggered outrage among labour unions and heightened tensions within the industry.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) confirmed the mass dismissal on Thursday, describing it as a grave escalation in the ongoing dispute over workers’ rights and unionisation. The association, however, expressed optimism that the affected workers “will be recalled” as negotiations intensify.
Unionisation Dispute Escalates into Full-Blown Crisis
The crisis traces back to allegations by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) that Dangote Refinery attempted to block tanker drivers and refinery employees from joining the union. In response, NUPENG halted fuel loading operations earlier this month, signalling the beginning of a standoff that has now snowballed into a national issue.
PENGASSAN swiftly backed NUPENG’s position, warning that it could take industrial action, including a potential shutdown of refinery operations, if workers’ rights continued to be undermined.
“We stand firmly with NUPENG and the employees of Dangote Refinery. Any attempt to suppress the fundamental rights of workers to unionise will be met with decisive action,”
— Lumumba Okugbawa, General Secretary, PENGASSAN.
NUPENG Convenes Emergency Meeting

In a fresh development, NUPENG has scheduled an emergency meeting to deliberate on the crisis and chart a course of action. The meeting, expected to involve top union officials and legal advisers, will focus on strategies to secure the reinstatement of the sacked workers, assess the legal implications of the refinery’s actions, and possibly plan further industrial actions if necessary.
Union insiders say the outcome of the meeting could determine the next steps in what is shaping up to be one of Nigeria’s most significant labour disputes in recent history.
Economic Implications Loom

The Dangote Refinery — a multi-billion-dollar project widely seen as a game-changer for Nigeria’s oil industry and energy independence — now faces significant operational and reputational challenges.
With over 4,000 tanker drivers and numerous refinery employees affected by the mass termination, analysts warn that the situation could disrupt fuel supply chains, heighten economic uncertainty, and strain industrial relations at a critical time for Nigeria’s energy sector.
Despite the escalating tension, PENGASSAN maintains that the decision to sack the workers is not final, expressing confidence that ongoing discussions will result in their recall.
What Lies Ahead
The coming days are expected to be pivotal. Stakeholders are closely watching the outcome of NUPENG’s emergency meeting and any subsequent engagement between the unions and Dangote Refinery management.
Should negotiations fail, Nigeria could witness widespread industrial action across the oil and gas sector, further compounding existing economic challenges.
For now, the fate of thousands of Nigerian workers — and the stability of one of Africa’s most ambitious industrial projects — hangs in the balance.
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