PENGASSAN Joins NUPENG in Threatening Strike Over Dangote Refinery Layoffs

Background to the dispute

In early September 2025, Dangote Refinery announced a wave of redundancies targeting staff who had recently joined PENGASSAN, the petroleum and natural gas workers’ union. The move was justified by the company as a cost‑cutting measure following a slowdown in fuel exports. However, the affected employees argued that the dismissals violated existing collective bargaining agreements.

Within days, NUPENG – the Nigeria Union of Petroleum and Natural Gas Workers – issued a statement condemning the layoffs as an attack on workers’ rights. The union called for an immediate moratorium on the terminations and demanded that the company honour its contractual obligations.

Why PENGASSAN is now backing NUPENG

Historically, PENGASSAN and NUPENG have operated in parallel, each representing different cadres of oil‑field staff. The recent dismissals, however, blurred the lines between the two bodies because many of the laid‑off workers held dual memberships. PENGASSAN’s leadership convened an emergency meeting and, after intense deliberation, decided to support NUPENG’s call for action.

“Our members are being targeted for simply belonging to PENGASSAN,” said a senior PENGASSAN official. “We cannot stand by while one union’s members are used as pawns in a corporate cost‑saving exercise.” The union pledged logistical and legal assistance, and warned that a coordinated strike could shut down a significant portion of the refinery’s production.

The joint stance has intensified pressure on Dangote Refinery’s management. Industry analysts note that the refinery processes about 650,000 barrels of crude daily, accounting for roughly 20% of Nigeria’s total refining capacity. A prolonged work stoppage could ripple through fuel distribution networks, inflating prices at petrol stations nationwide.

Government officials have so far remained neutral, urging both parties to resolve the matter through dialogue. The Ministry of Labour, however, has signalled readiness to intervene if the dispute threatens national energy security.

For now, both unions are planning a series of rallies in Lagos and Port Harcourt, while Dangote’s legal team prepares to contest any strike on the grounds of contractual breach. The coming weeks will determine whether negotiations can avert a costly shutdown, or if the refinery will face an unprecedented labor walk‑out.