The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) is mounting serious accusations against Dangote Petroleum Refinery, accusing management of mass retrenchment of Nigerian workers, replacement with expatriates, union-busting tactics, and violations of workers’ rights.
In turn, the refinery has characterised union actions — including directives to cut off crude & gas supply — as economic sabotage. Both sides stake their claims in law, and the public is watching closely because the stakes are enormously high.
This is not merely a workplace dispute; it implicates the rights of labour, constitutional protections, contractual obligations, national economic stability, and Nigeria’s image in doing business.
PENGASSAN alleges that over 800 Nigerian workers at Dangote Refinery were retrenched and replaced with foreign nationals (predominantly from India).
The union claims this move followed swiftly (within ~24 hours) after a large number of the employees officially joined PENGASSAN. Employees who joined PENGASSAN claim their membership triggered reprisals: denied bus access, denied entry to the premises, targeting of union leaders for intimidation.
PENGASSAN has described these as violations of freedoms guaranteed under Section 40 of the 1999 Constitution (freedom of association)
However,Dangote management says the layoffs are part of a total reorganisation process, prompted in part by reported sabotage in various refinery units.
The memo reportedly signed by the Chief General Manager of Human Asset Management explains the dismissal of affected staff, instructing them to surrender company property and obtain exit clearance.
Union Response: Escalation of Tactics
In response to the dismissals, PENGASSAN has issued a directive to cut off crude and gas supply to the Dangote Refinery, including shutting supply valves, halting vessel loading operations, and other supply stoppages.
The union frames this as necessary retaliation for what it sees as unlawful termination of members who were unionising.
Why This Matters Beyond the Workers Directly Involved
Constitutional and Labour Law Precedents: If a large employer can terminate workers for joining a union, that sets a dangerous precedent—potentially chilling union membership across industries.
Investor Confidence: Nigeria has been pitching itself as an energy investment frontier. But labour unrest, perceived disregard for law or rights, or unstable supply chains can make investors wary.
Energy Security & Consumer Impact: Disruptions in supply to a refinery of Dangote’s scale can ripple out to serious fuel shortages, price hikes (petrol, aviation fuel, diesel, etc.), and possibly impacts on inflation. The social implications are large.
Fairness, Identity, and National Interest: A key demand for Nigerian workers is not only employment but local content, fair labour practices, dignity. When expatriates are brought in en masse over local labour, questions of national value and priorities surface.
To resolve this issue and ensure the masses doesn’t suffer from another hardship, there is need to take the following steps;
Transparent Investigation
There must be an impartial inquiry into the allegations: were the workers legally and fairly dismissed? Was the “sabotage” claim substantiated? Did the company follow due process?
Legal and Constitutional Review
The labour laws, union rights, and constitutional guarantees should be applied clearly. If rights to unionise were violated, this must be remedied.
Dialogue & Negotiation
PENGASSAN and Dangote management should enter mediated talks. The government or an independent regulator should facilitate this to avoid escalation.
Also see: Experts Call for Urgent Action to Tackle Food Waste in Nigeria
Ensure Worker Protection
If there are legitimate safety or performance concerns, the company must address them fairly, not through wholesale dismissals. Severance, proper compensation, due notice, exit clearance—all must align with law and best practice.
Reassurance to the Public
Because energy supply affects every citizen’s daily life, both sides have a responsibility to avoid actions that unnecessarily harm consumers—like shutting down crude supply or gas arbitrarily.
Conclusively, the dispute between PENGASSAN and Dangote Refineries is more than just a clash of labour vs management. It pits constitutional rights and labour fairness against organizational efficiency and the business prerogatives of a major industrial player. The manner in which Nigeria handles this moment will resonate: it will either reinforce the rule of law and worker dignity—or erode trust in institutions and corporate responsibility.
If Nigeria loses its ability to protect fundamental labour rights, the cost will go beyond the oil price—it will chip away at social cohesion and fairness. But if resolved right, this can be an example of how economic growth, corporate ambition, and labour rights can coexist.
