Dangote Refinery Faces Alleged Mass Dismissal of 800 Nigerian Workers, PENGASSAN Raises Alarm

What sparked the controversy?

Late Wednesday night, workers at the newly built Dangote Petroleum Refinery received termination letters that would soon dominate headlines across Nigeria. According to the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), more than 800 Nigerian employees were abruptly let go. The union says the cuts came just hours after 90% of those workers signed up for PENGASSAN membership, a timing it finds “suspicious at best and retaliatory at worst.”

General Secretary Lumumba Okugbawa described the dismissals as "unjust" and urged the refinery to recall the staff. President Festus Osifo confirmed that the letters arrived late on Wednesday and added that the union is already mobilising a response to protect the affected workers.

Beyond the terminations, PENGASSAN claims the refinery replaced the Nigerian staff with a large contingent of Indian nationals. The union also alleges that management pulled staff buses in the evening, forcing workers to cover their own transport costs—an act it says was meant to add pressure on the shaken workforce.

Company’s version and the sabotage narrative

A senior official from the refinery disputed the notion of a “mass sack.” While acknowledging that a letter about workforce changes had been issued, he insisted the document was misinterpreted. According to Dangote, the personnel reshuffle is part of a broader re‑organisation aimed at curbing sabotage that has been detected inside the plant.

Dangote Industries, the conglomerate behind the refinery, argues that the adjustments are necessary to secure the facility’s operational integrity. The company’s spokesperson said the move has nothing to do with workers’ right to unionise and emphasized that any allegations linking the changes to union activity are unfounded.

In recent months, the refinery has already been under pressure from the Depot and Petroleum Products Marketers Association of Nigeria (DPPMAN) over product pricing and distribution. This latest spat adds a new layer to the ongoing friction between labour groups and the refinery’s management.

Both sides are now at a crossroads. PENGASSAN has issued a formal ultimatum demanding the immediate reinstatement of the dismissed workers. If the refinery does not comply, the union warned it will organise picket lines and other forms of industrial action. The threat of a picket at one of Africa’s most high‑profile oil projects could have ripple effects on fuel supply and pricing across the region.

Industry experts point out that the situation also raises broader questions about labour rights in Nigeria’s oil sector. The country’s labour law mandates that any mass termination must be preceded by proper consultation and notice. If the union’s claims are verified, the refinery could face legal challenges or sanctions from the Ministry of Labour.

Meanwhile, workers on the ground are coping with uncertainty. Many report that without the company‑provided transport, they have had to arrange costly private rides, further straining already tight household budgets. Families of the dismissed staff are pressing local representatives for assistance, hoping political pressure might sway the refinery’s stance.

On the other side of the debate, the refinery’s management insists that sabotage poses a real threat to the plant’s safety and profitability. They cite internal investigations that allegedly uncovered tampering with critical equipment—a claim that, if true, could justify swift and decisive staffing changes.

As the standoff unfolds, observers are watching to see whether the dispute will stay confined to the refinery’s gates or spill over into Nigeria’s broader energy policy discussion. The outcome could set a precedent for how foreign‑owned or –operated facilities handle labour relations, especially when national workforce development and unionisation are at play.

For now, PENGASSAN is preparing its members for possible action, while Dangote Refinery continues to maintain that its restructuring is solely a security measure. The next few weeks will likely determine whether negotiations can bridge the gap or whether the conflict escalates into a full‑blown industrial showdown.