Dangote Refinery Faces Shutdown Threat as PENGASSAN Backs NUPENG in Unionisation Fight

Unionisation Standoff Escalates

When the Dangote Refinery announced it would hire 4,000 truck drivers for its massive 650,000‑barrel‑per‑day complex, it also signalled that those drivers could not join the country’s established unions. That line‑item sparked an immediate backlash from NUPENG, which swiftly halted fuel loading at several petroleum depots on Monday, warning that any interference with union rights would jeopardise the nation’s fuel supply.

PENGASSAN’s General Secretary, Lumumba Okugbawa, opened up a fierce press conference the same day. He said the refinery’s management had “systematically resisted potential members of both PENGASSAN and NUPENG since its inception,” and that diplomatic overtures had fallen on deaf ears. He added that the unions were prepared to walk the line from protests to a full‑scale shutdown if the company did not reverse its stance.

In response, Dangote’s spokesperson claimed the decision was driven by “security concerns” tied to repeated sabotage reports, and that the layoffs of 800 workers were part of a broader reorganisation. The union side, however, labeled the cuts as “unconsulted and opaque,” pointing out that Nigerian labour law requires transparent consultation before any mass dismissal.

Both unions are now demanding that every employee at the refinery—including the newly recruited drivers—be allowed to affiliate with either PENGASSAN or NUPENG without fear of retaliation. They argue that the right to organise is enshrined not only in national statutes but also in International Labour Organisation conventions that Nigeria has ratified.

Economic and Legal Implications

The stakes go well beyond a single workplace. The refinery is a keystone of Nigeria’s push for fuel self‑sufficiency; any prolonged shutdown could tighten fuel availability, spike transport costs, and ripple through the nation’s already fragile economy. Analysts note that even a brief interruption could push gasoline prices up by 10‑15 percent, a hit that would be felt most acutely by commuters and small businesses.

Legal experts point out that denying workers the right to unionise breaches the Labour Act of 2004, which guarantees freedom of association. They also cite ILO Convention No. 87, which protects workers’ rights to form and join organisations of their choosing. Should the case go to court, the refinery could face injunctions, hefty fines, or even compulsory reinstatement of dismissed staff.

Minister of Labour, Employment and Productivity Muhammadu Dingyadi has convened an emergency round‑table in Abuja, inviting representatives from both unions, the refinery’s management, and senior government officials. The goal, he says, is to find a “practical and lawful” pathway that respects workers’ rights while keeping the refinery’s output on track.

While talks are underway, the unions have warned that they will act decisively if the refinery’s management continues to stall. Okugbawa told reporters that “should the situation persist without resolution, PENGASSAN will have no option but to join in shutting down the refinery operations as a last resort.” The message is clear: the labor front is prepared to leverage the refinery’s economic importance to secure the rights they deem non‑negotiable.

For now, the country watches a developing story that could reshape how Nigeria balances industrial growth with fundamental labour protections. The next few days will likely determine whether dialogue can avert a shutdown or whether the standoff will force a broader confrontation between corporate ambition and workers’ rights.