The Dangote Petroleum Refinery has been navigating significant operational and industrial challenges, including a recent temporary suspension and swift resumption of petrol sales in Naira, alongside an escalating dispute with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over alleged worker layoffs.

Initially, the Dangote Refinery announced the suspension of Premium Motor Spirit (PMS) sales in Naira, effective September 28, 2025. This decision stemmed from the refinery selling petroleum products in excess of its Naira-Crude allocations, making it unsustainable to continue Naira sales. This policy framework, which began on October 1, 2024, directed crude oil sales to local refineries in Naira, with refined products also sold domestically in Naira, aiming to improve supply, conserve foreign exchange, and reduce pump prices.

However, the initiative faced challenges, including a temporary halt by the Nigerian National Petroleum Company (NNPC) Limited in March 2025, citing forward-sold crude, and previous suspensions by Dangote Refinery to avoid mismatches with dollar-denominated crude purchase obligations.

Less than 24 hours after the suspension announcement, the refinery resumed PMS sales in Naira on September 27, 2025, following the intervention of the Naira for Crude Technical Committee Chairman, Dr. Zacch Adedeji, who also serves as the Executive Chairman of the Federal Inland Revenue Service (FIRS).

This swift reversal averted a potential nationwide fuel price hike, which the Independent Petroleum Marketers Association of Nigeria (IPMAN) had warned would occur if the refinery switched to dollar-denominated sales. The federal government reiterated that the Naira for Crude and Refined Product Sales initiative is a key, non-temporary policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.

Concurrently, an industrial dispute between Dangote Refinery and PENGASSAN dramatically escalated. PENGASSAN accused the refinery of anti-labour practices and unlawfully sacking over 800 workers, later reduced to 312 after negotiations with the Ministry of Labour and Employment. The union staged protests outside the refinery gates, accusing management of intimidation, casualisation of staff, and non-compliance with established labour laws.

Dangote Refinery management, however, strongly refuted these allegations, describing the claims as “grossly exaggerated and misleading.” According to a company spokesperson, the refinery only disengaged staff found guilty of misconduct or redundancy, while severance benefits were reportedly paid in line with Nigerian labour standards.

The dispute reached a boiling point when PENGASSAN threatened to shut down critical refinery operations and mobilise nationwide solidarity strikes if the “unlawful sackings” were not reversed. Labour analysts warned that a full shutdown of the refinery, which has already become Nigeria’s largest supplier of refined products, could trigger severe fuel shortages and renewed economic pressures.

Mediating efforts are currently underway. The Federal Ministry of Labour has summoned both parties to Abuja for high-level reconciliation talks. Industry observers stress that the outcome of these negotiations will significantly shape not only labour relations in the downstream oil and gas sector but also the stability of Nigeria’s fuel supply at a time when the nation is seeking to consolidate the benefits of local refining.

For now, the Dangote Refinery continues to operate, with PMS sales in Naira restored, but the dual challenges of balancing government policy, foreign exchange dynamics, and tense labour relations remain a test of both industrial resilience and political will.