The management of Dangote Petroleum Refinery has sparked significant industrial unrest following the termination of employment for over 800 Nigerian workers. This decision has intensified an ongoing dispute between the refinery and major oil unions, specifically the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which has been simmering over issues of unionisation rights.

The contentious relationship saw a brief resolution attempt on September 9, 2025, when Dangote and NUPENG signed a Memorandum of Understanding (MOU) affirming the refinery workers’ constitutional right to unionise, following a government-mediated meeting. However, this agreement quickly unraveled as unions accused the Dangote Group of acting in bad faith, citing orders for truck drivers to remove union stickers.

In a leaked memo from Femi Adekunle, Chief General Manager of Human Asset Management, the refinery cited a "total re-organisation" as the reason for the mass layoffs, effective September 25, 2025. The memo attributed this restructuring to "recent cases of reported sabotage in different units, leading to major safety concerns," asserting the refinery was "constrained to carry out a total re-organisation of the plant." Despite confirming terminations, Dangote Refinery later claimed that "only a very small number of staff were affected," attributing the action to sabotage while confirming ongoing recruitment.

PENGASSAN swiftly condemned the terminations as "anti-labour practices" and a "blatant disregard" for Nigerian workers' rights. The union alleged that the sacked Nigerian workers were unjustly replaced by over 2,000 foreign nationals, primarily Indians, many of whom reportedly lack valid immigration documentation. PENGASSAN highlighted that such dismissals, without due consultation or transparent justification, contravene explicit provisions of the Labour Act (specifically Section 7, which prohibits discrimination and ensures fair treatment) and the Trade Union Act, which protects workers' rights to organise and join unions.

In response, PENGASSAN issued an ultimatum to Dangote Refinery, demanding the immediate recall of all terminated Nigerian workers. The union warned that failure to comply would compel them to explore all available sections of the Nigerian Constitution and relevant labour laws, including legal and industrial action. Festus Osifo, President of PENGASSAN, expressed confidence that the company would reverse its decision. PENGASSAN has scheduled an emergency National Executive Council (NEC) meeting to strategize on further decisive actions, reiterating its commitment to resisting what it terms "slave labour" and protecting local talent.