A fuel price surge is currently looming in Nigeria as tension is escalating between Dangote Refinery and labor unions over the alleged sacking of 800 workers.
The escalating tension erupted after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) vowed to shut down operations at the $20 billion facility after the dismissal of over 800 Nigerian workers, just hours after they joined the union.
Pan-Atlantic Kompass reports that the controversy erupted on Friday when PENGASSAN accused Dangote Petroleum Refinery and Petrochemicals of mass victimization for exercising constitutional rights to unionize.
In a scathing statement, PENGASSAN General Secretary Lumumba Okugbawa detailed how workers allegedly received termination emails late Thursday, denying them entry to the plant while allowing expatriate staff access.
The union claimed the refinery has replaced the sacked Nigerians with more than 2,000 Indian nationals, labeling the move “anti-labor and insensitive” amid Nigeria’s youth unemployment crisis.
“We are deeply saddened to report the unjust termination of over 800 Nigerian workers, whose dedication and service have been integral to the operations of this plant. Instead of valuing and retaining this workforce, management has chosen to replace these qualified Nigerians with over 2,000 Indian workers,” the union said.
PENGASSAN described the alleged action as a violation of Nigeria’s labour laws and linked it to what it called “a worrying trend of exploitative practices” within the Dangote Group. The union issued an ultimatum to the refinery to reinstate all affected staff or face industrial action, disclosing that an emergency National Executive Council (NEC) meeting had been scheduled to decide on the next steps.
“This slave labour of our brothers and sisters must not be tolerated or supported, as injury to one is injury to all,” PENGASSAN warned.
However, Dangote Industries swiftly denied allegations of sacking 800 workers, framing the action as a targeted reorganization to address “acts of sabotage” in key units.
In a statement on Friday, Dangote Refinery said: “Over 3,000 Nigerians continue to work actively in our Petroleum Refinery at present. Only a very small number of staff were affected, as we continue to recruit Nigerian talent through our graduate trainee programmes and experienced hire recruitment process.
“The foregoing decision was taken in the best interest of the refinery as a result of intermittent cases of sabotage in the various units of the refinery with dire consequences on human life and related safety concerns. We remain vigilant of our internal systems and vulnerabilities to ensure the long-term stability of this strategic national asset. It is imperative to protect the refinery for the benefit of Nigerians, our partners across Africa, and the thousands of people whose livelihoods depend on it.”
Pan-Atlantic Kompass reports that the tension over the alleged sacking of 800 Nigerian workers continued on Saturday as Dangote Refinery announced its decision to suspend sales of petrol in local currency starting from Sunday, September 28, 2025.
Dangote Petroleum Refinery announced the suspension of petrol sales in naira, in an email sent to its customers.
The refinery cited the exhaustion of its crude-for-naira allocation as the reason for its decision.
The notice, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, was titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025”.
It read in part: “We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward.
“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.
“All customers with PMS transactions in Naira who would like a refund of their current payments should formally request the processing of their refund.”
Just hours after, PENGASSAN also issued an urgent directive to its members to halt all gas and crude oil supplies to the Dangote Petroleum Refinery effective immediately.
In a strongly worded letter dated September 26, signed by PENGASSAN General Secretary Comrade Lumumba Ighotemu Okugbawa, the association demanded an instant cutoff of gas to the Nigerian Gas Infrastructure Company Limited (NGIC), closure of all crude oil supply valves, and suspension of vessel loading activities bound for the facility.
The letter reads in part: “We bring you fraternal greetings from the National Secretariat. As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to be unionized.
“They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.
“Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the Refinery should be shut. The loading operation for the vessel headed there should be halted immediately.
“NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately.
“All chairmen on this summons are to report promptly the progress of the directive.
Kindly accept the assurances of our highest esteem. Thank you. Injury to one, Injury to all”
