In a significant development aimed at resolving an escalating labour dispute, the Federal Government of Nigeria has called for an urgent meeting with the leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the management of the Dangote Refinery. This intervention follows rising tensions between the refinery's management and its workforce, particularly the senior staff association, over issues related to working conditions, remuneration, and alleged unfair labour practices. The government’s decision to step in underscores the critical importance of the $20 billion Dangote Refinery to Nigeria’s economy and its energy sector, as well as the need to maintain industrial harmony to ensure the facility’s smooth operation.
Background of the Dispute
The Dangote Refinery, located in the Lekki Free Zone in Lagos State, is a flagship project of the Dangote Group, owned by Africa’s richest man, Aliko Dangote. With a capacity to process 650,000 barrels of crude oil per day, the refinery is poised to transform Nigeria’s energy landscape by reducing the country’s dependence on imported petroleum products and positioning it as a net exporter of refined products. The project, which has been in development for several years, began operations in 2024 and has been hailed as a game-changer for Nigeria’s economy, creating thousands of jobs and contributing to economic diversification.
However, despite its monumental importance, the refinery has recently been embroiled in a labour dispute that threatens to disrupt its operations. The disagreement involves PENGASSAN, the union representing senior staff in the oil and gas sector, and the management of the Dangote Refinery. According to sources familiar with the matter, the rift centers on several key issues, including disparities in salaries and benefits, alleged discriminatory practices in the treatment of workers, and concerns over job security and workplace policies.
PENGASSAN has accused the refinery’s management of failing to honor agreements related to workers’ welfare, particularly regarding the implementation of fair remuneration packages for local employees compared to expatriate staff. The union claims that while expatriate workers at the refinery receive significantly higher salaries and better working conditions, Nigerian workers, including highly skilled senior staff, are subjected to less favorable terms. This disparity has sparked discontent among the workforce, leading to protests and threats of industrial action.
Additionally, PENGASSAN has raised concerns about the alleged use of coercive tactics by the refinery’s management to suppress union activities. Reports suggest that some workers who have voiced grievances or attempted to organize collective bargaining have faced intimidation or threats of dismissal. These allegations have further strained relations between the union and the refinery’s management, prompting PENGASSAN to escalate the matter to the Federal Government.
Government’s Response and the Summon
Recognizing the potential economic and social implications of a prolonged labour dispute at the Dangote Refinery, the Federal Government has taken swift action to mediate the crisis. On September 28, 2025, the Ministry of Labour and Employment issued a formal summons to the leadership of PENGASSAN and the management of the Dangote Refinery, directing them to attend a meeting at the ministry’s headquarters in Abuja. The objective of the meeting, according to a statement from the ministry, is to facilitate dialogue between the two parties, address the grievances raised by the union, and find a mutually acceptable resolution to the dispute.
The ministry’s intervention is seen as a proactive step to prevent the situation from deteriorating further and potentially disrupting operations at the refinery. A spokesperson for the Ministry of Labour and Employment emphasized the government’s commitment to ensuring industrial peace in critical sectors of the economy. “The Dangote Refinery is a strategic national asset, and any disruption to its operations could have far-reaching consequences for Nigeria’s energy security and economic stability,” the spokesperson said. “We are committed to engaging all stakeholders to resolve this matter amicably and ensure that the rights and welfare of workers are protected.”
The summons has been met with cautious optimism by both PENGASSAN and industry observers. The union has expressed hope that the government’s intervention will lead to meaningful dialogue and the resolution of their grievances. However, PENGASSAN has also indicated that it remains prepared to take further action, including industrial action, if the issues are not addressed satisfactorily.
Details of the Labour Rift
The labour dispute at the Dangote Refinery has been brewing for several months, with tensions coming to a head in recent weeks. According to PENGASSAN, the primary issues at the heart of the conflict include:
Salary Disparities: One of the most contentious issues is the significant gap in remuneration between Nigerian workers and their expatriate counterparts. PENGASSAN claims that expatriate staff, many of whom are employed in technical and managerial roles, receive salaries that are several times higher than those of Nigerian workers performing similar duties. This disparity, the union argues, is unjustifiable and undermines the morale of local employees who are critical to the refinery’s operations.
Poor Working Conditions: PENGASSAN has also raised concerns about the working conditions at the refinery, particularly for Nigerian staff. Allegations include long working hours, inadequate safety measures, and insufficient provisions for employee welfare, such as health insurance and accommodation. The union has called for the implementation of industry-standard practices to ensure a safe and conducive working environment.
Alleged Anti-Union Practices: The union has accused the refinery’s management of engaging in practices aimed at discouraging unionization and collective bargaining. Some workers have reportedly been threatened with termination or other punitive measures for participating in union activities or raising concerns about workplace issues. PENGASSAN views these actions as a violation of workers’ rights and has called for an investigation into the matter.
Job Security Concerns: Another major grievance is the perceived lack of job security for Nigerian workers. PENGASSAN claims that the refinery’s management has prioritized the employment of expatriates in key roles, leaving local workers uncertain about their long-term prospects. The union has demanded greater transparency in hiring practices and a commitment to prioritizing Nigerian talent.
Non-Implementation of Agreements: According to PENGASSAN, the refinery’s management has failed to honor agreements reached during previous negotiations regarding workers’ welfare and benefits. The union alleges that promises made to improve salaries, provide training opportunities, and address other concerns have not been fulfilled, further fueling discontent among the workforce.
These issues have created a volatile atmosphere at the refinery, with workers expressing frustration over what they perceive as a lack of respect for their contributions to the project. PENGASSAN has warned that failure to address these concerns could lead to a full-scale strike, which would disrupt operations at the refinery and have significant implications for Nigeria’s energy sector.
The Importance of the Dangote Refinery
The labour dispute at the Dangote Refinery comes at a critical time for Nigeria, as the country seeks to leverage the facility to achieve energy self-sufficiency and boost economic growth. The refinery, which is the largest single-train refinery in the world, has the capacity to meet Nigeria’s entire demand for petroleum products, including petrol, diesel, aviation fuel, and kerosene. By reducing the country’s reliance on imported fuel, the refinery is expected to save billions of dollars in foreign exchange and create thousands of direct and indirect jobs.
In addition to its economic benefits, the refinery is seen as a symbol of Nigeria’s industrial ambition and a testament to the potential of private-sector-led development. The project has received significant support from the Federal Government, including tax incentives and policy measures aimed at ensuring its success. However, the ongoing labour dispute threatens to undermine these efforts and cast a shadow over the refinery’s achievements.
Industry analysts have warned that a prolonged disruption at the refinery could have ripple effects across the economy. Nigeria’s energy sector is already grappling with challenges such as pipeline vandalism, oil theft, and inefficiencies in the downstream sector. A strike or slowdown at the Dangote Refinery could exacerbate these issues, leading to fuel shortages, price hikes, and economic instability.
PENGASSAN’s Position and Demands
PENGASSAN, as the representative body for senior staff in the oil and gas industry, has been vocal in its demands for fair treatment of workers at the Dangote Refinery. The union has outlined a series of demands, which it insists must be met to resolve the dispute. These include:
Equal Pay for Equal Work: PENGASSAN is calling for the elimination of salary disparities between Nigerian and expatriate workers. The union argues that Nigerian staff, many of whom possess the requisite skills and qualifications, should receive compensation commensurate with their roles and responsibilities.
Improved Working Conditions: The union is demanding the implementation of industry-standard working conditions, including reasonable working hours, adequate safety measures, and comprehensive health and welfare benefits for all employees.
Respect for Workers’ Rights: PENGASSAN has called for an end to alleged anti-union practices and the protection of workers’ rights to organize and engage in collective bargaining. The union has also demanded an investigation into claims of intimidation and coercion by the refinery’s management.
Job Security and Local Content: The union is advocating for greater job security for Nigerian workers and the prioritization of local talent in hiring and promotions. PENGASSAN has urged the refinery to comply with Nigeria’s local content policies, which aim to promote the employment and development of Nigerian workers in key industries.
Implementation of Agreements: PENGASSAN has insisted that the refinery’s management honor all agreements reached during previous negotiations, including those related to salaries, benefits, and training opportunities.
The union has expressed its willingness to engage in dialogue with the refinery’s management and the Federal Government to resolve the dispute. However, PENGASSAN has also made it clear that it will not hesitate to mobilize its members for industrial action if its demands are not met.
Dangote Refinery’s Response
The management of the Dangote Refinery has yet to issue a detailed public response to the allegations raised by PENGASSAN. However, sources within the company have indicated that the refinery is committed to addressing the concerns of its workforce and maintaining a positive working environment. The management has reportedly described the labour dispute as a “misunderstanding” and expressed confidence that the issues can be resolved through dialogue.
In a brief statement, a spokesperson for the Dangote Group emphasized the company’s commitment to the welfare of its employees and its role as a responsible corporate citizen. “The Dangote Refinery is fully committed to ensuring the well-being of all its employees and complying with all relevant labour laws,” the spokesperson said. “We are engaging with the relevant stakeholders to address any concerns and ensure the continued success of this critical project.”
Industry observers have noted that the refinery’s management may face significant pressure to resolve the dispute quickly, given the project’s importance to Nigeria’s economy and the government’s keen interest in its success. The outcome of the upcoming meeting with the Federal Government and PENGASSAN will likely play a crucial role in determining the trajectory of the dispute.
The Role of the Federal Government
The Federal Government’s intervention in the labour dispute reflects its recognition of the strategic importance of the Dangote Refinery and the need to maintain industrial harmony in the oil and gas sector. The Ministry of Labour and Employment, led by the Minister, is expected to play a central role in mediating the negotiations between PENGASSAN and the refinery’s management.
The government’s approach is likely to focus on fostering dialogue, addressing the legitimate concerns of workers, and ensuring that the refinery’s operations are not disrupted. The ministry may also seek to enforce compliance with Nigeria’s labour laws and local content policies, which mandate fair treatment of workers and the prioritization of Nigerian talent in key industries.
In addition to mediating the current dispute, the government may use this opportunity to address broader issues in the oil and gas sector, such as the need for improved labour standards and greater transparency in employment practices. The outcome of the government’s intervention could set a precedent for how similar disputes are handled in the future, particularly in high-profile projects like the Dangote Refinery.
Implications for Nigeria’s Energy Sector
The labour dispute at the Dangote Refinery has far-reaching implications for Nigeria’s energy sector and the broader economy. A prolonged conflict could disrupt the refinery’s operations, leading to delays in the production and distribution of petroleum products. This, in turn, could exacerbate fuel shortages and drive up prices, placing additional strain on Nigerian consumers and businesses.
Moreover, the dispute could damage the refinery’s reputation as a reliable employer and a cornerstone of Nigeria’s industrial development. The allegations of unfair labour practices and discrimination, if not addressed, could deter future investment in the sector and undermine confidence in Nigeria’s ability to manage large-scale industrial projects.
On the other hand, a successful resolution of the dispute could strengthen the refinery’s position as a model for private-sector-led development and demonstrate the government’s commitment to protecting workers’ rights. It could also pave the way for improved labour relations in the oil and gas sector, fostering a more equitable and sustainable working environment.
Conclusion
The Federal Government’s decision to summon PENGASSAN and the Dangote Refinery’s management for talks represents a critical step toward resolving the ongoing labour dispute at one of Nigeria’s most important industrial projects. The outcome of these negotiations will have significant implications for the refinery’s operations, Nigeria’s energy sector, and the broader economy.
As the government, PENGASSAN, and the refinery’s management prepare to engage in dialogue, all eyes will be on Abuja to see whether a mutually acceptable resolution can be reached. For now, the hope is that the parties involved will prioritize the interests of workers, the success of the refinery, and the well-being of the Nigerian economy. The stakes are high, and the resolution of this dispute will likely shape the future of labour relations in Nigeria’s oil and gas industry for years to come.
