In a compelling address at the opening of the 31st Nigerian Economic Summit (NES #31) held in Abuja on Monday, October 6, 2025, Vice President Kashim Shettima called on the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to exercise caution and restraint in its interactions with the Dangote Refinery. He emphasized that the actions and inactions of PENGASSAN could significantly shape the perceptions of foreign investors regarding Nigeria’s business environment. Shettima’s remarks come in the wake of a recent labor dispute between PENGASSAN and the Dangote Refinery, underscoring the delicate balance between labor rights and fostering a conducive climate for investment in Nigeria.
The recent conflict between PENGASSAN and the Dangote Refinery, a multi-billion-dollar project spearheaded by Africa’s richest man, Aliko Dangote, erupted following the reported dismissal of approximately 800 Nigerian workers from the refinery. These workers were allegedly replaced with expatriates from India, a move that sparked outrage within PENGASSAN. The association has accused the Dangote Group of flouting Nigerian labor laws by preventing its members from joining unions, a right enshrined in the country’s legal framework. This disagreement escalated into industrial action, drawing significant attention to the broader implications for Nigeria’s labor and investment landscape.
During his speech, Vice President Shettima described Aliko Dangote not merely as an individual but as an institution critical to Nigeria’s economic aspirations. He urged Nigerians to recognize the refinery as a national asset that must be protected and promoted to secure the country’s economic future. “Aliko Dangote is not an individual. He is a leading light in Nigeria’s economic firmament, and how we treat this gentleman will determine how outsiders will judge us,” Shettima stated. His remarks underscored the refinery’s role as a cornerstone of Nigeria’s industrial ambitions, particularly in the petroleum sector, which remains a vital component of the nation’s economy.
Shettima further highlighted the scale of Dangote’s investment in Nigeria, noting that the business magnate could have opted to invest his wealth in global tech giants such as Microsoft, Amazon, or Google, potentially amassing a fortune of $78 billion. Instead, Dangote chose to channel his resources into Nigeria, a decision that Shettima described as a patriotic act deserving of national support. “He chose to invest in this country, and we owe it to future generations to jealously promote, protect, preserve, and project the interest of this great Nigerian,” the Vice President declared. His comments reflect a call for unity in safeguarding major investments like the Dangote Refinery, which has the potential to transform Nigeria’s economy by reducing dependence on imported petroleum products and boosting local refining capacity.
The labor dispute between PENGASSAN and the Dangote Refinery highlights a broader tension between the rights of workers and the operational autonomy of large-scale private enterprises. PENGASSAN’s insistence that the Dangote Group comply with labor laws by allowing unionization reflects a commitment to protecting workers’ rights in an industry that has historically been a battleground for labor disputes. The association argues that unionization ensures fair treatment, better working conditions, and job security for its members, particularly in light of the recent layoffs. Conversely, the Dangote Group’s resistance to unionization may stem from concerns about maintaining operational flexibility and minimizing disruptions in a highly competitive global market.
The industrial action that followed the dispute has raised concerns about its potential impact on Nigeria’s attractiveness as a destination for foreign direct investment (FDI). Nigeria has long struggled to improve its business climate, with challenges such as bureaucratic inefficiencies, inconsistent policies, and infrastructure deficits deterring investors. Shettima’s warning to PENGASSAN underscores the government’s desire to project an image of stability and reliability to the international business community. By framing the Dangote Refinery as a national asset, the Vice President is signaling that the government views the project as a critical component of its economic diversification strategy, particularly in reducing Nigeria’s reliance on oil imports.
The Dangote Refinery, located in the Lekki Free Trade Zone in Lagos, is one of the largest single-train refineries in the world, with a capacity to process 650,000 barrels of crude oil per day. Once fully operational, it is expected to meet Nigeria’s domestic demand for refined petroleum products, including petrol, diesel, and aviation fuel, while also generating significant export revenue. The refinery represents a bold step toward achieving self-sufficiency in Nigeria’s energy sector, a goal that has eluded successive administrations. However, its success depends not only on operational efficiency but also on navigating the complex interplay of labor relations, government policies, and global market dynamics.
Shettima’s remarks at NES #31 also reflect the government’s broader economic agenda, which prioritizes private-sector-led growth and industrialization. The Nigerian Economic Summit, an annual event that brings together policymakers, business leaders, and stakeholders, serves as a platform to discuss strategies for addressing the country’s economic challenges. This year’s summit, themed around fostering sustainable growth and investment, provided an apt backdrop for Shettima’s call to protect the Dangote Refinery as a symbol of Nigeria’s industrial potential.
The Vice President’s appeal to PENGASSAN is not merely a defense of Aliko Dangote as an individual but a recognition of the refinery’s role in driving economic transformation. The project has already created thousands of direct and indirect jobs, stimulated ancillary industries, and positioned Nigeria as a potential hub for petroleum refining in Africa. However, the recent labor dispute threatens to undermine these gains by creating uncertainty for investors who may view such conflicts as indicative of broader systemic risks.
To address the ongoing crisis, there is a need for dialogue between PENGASSAN, the Dangote Group, and relevant government agencies to find a resolution that balances workers’ rights with the operational needs of the refinery. The Nigerian government, through the Ministry of Labour and Employment, could play a mediating role to ensure that both parties reach a mutually beneficial agreement. Such an approach would demonstrate Nigeria’s commitment to fostering a harmonious business environment while upholding labor standards.
Moreover, the government must continue to implement reforms to improve the ease of doing business in Nigeria. This includes streamlining regulatory processes, enhancing infrastructure, and ensuring policy consistency to attract and retain investors. The Dangote Refinery’s success could serve as a catalyst for further investments in critical sectors such as manufacturing, agriculture, and technology, provided the government and stakeholders create an enabling environment.
Shettima’s speech also carries a broader message about national pride and collective responsibility. By describing Aliko Dangote as a “leading light,” he is rallying Nigerians to take ownership of homegrown enterprises that have the potential to elevate the country’s global standing. The refinery’s ability to compete with international players in the petroleum industry could enhance Nigeria’s reputation as a viable investment destination, provided stakeholders work together to address challenges such as the current labor dispute.
As Nigeria navigates its economic challenges, the Dangote Refinery stands as a testament to the power of private-sector innovation and investment. However, its success hinges on the ability of all stakeholders—government, labor unions, and the private sector—to collaborate in overcoming obstacles. Vice President Shettima’s call to PENGASSAN is a reminder that the actions of individual players in Nigeria’s economic ecosystem can have far-reaching consequences for the nation’s global image and economic prospects.
In conclusion, the ongoing dispute between PENGASSAN and the Dangote Refinery underscores the complexities of balancing labor rights with the imperatives of economic development. Vice President Shettima’s remarks at NES #31 highlight the refinery’s significance as a national asset and a beacon of Nigeria’s industrial ambitions. By urging PENGASSAN to tread carefully, he is emphasizing the need for a collaborative approach to ensure that Nigeria remains an attractive destination for investment. As the country works toward economic diversification and self-sufficiency, the success of projects like the Dangote Refinery will depend on the ability of all stakeholders to align their interests for the greater good of the nation.
