By Dada Ahmed.
(C) Google.
At first glance, the conflict between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), along with its allied oil unions, might appear like just another industrial dispute.
But when the clash of oil giants is looked into, deeper and consider the scale, stakes, and symbolism, it becomes clear that this dispute marks a turning point,one that could redefine employer,union relations in Nigeria’s vital energy sector.
The spark came from the dismissal of over 800 unionized workers at the Dangote Refinery, reportedly after they sought affiliation with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). The refinery defended the action as a reorganization move to address internal sabotage, while the unions described it as punitive and aimed at suppressing collective bargaining rights.
In a dramatic escalation, PENGASSAN directed its members nationwide to suspend gas and crude oil supplies to Dangote facilities, including halting loading operations. The goal was clear: compel management back to the negotiation table and highlight what unions called the “victimization of workers.” Dangote, on its part, accused the unions of lawlessness and interference in contractual matters that did not concern them.
The federal government, sensing potential danger to national energy stability, intervened swiftly. It convened a high-level meeting involving the Finance Ministry, NNPC, regulators, and Dangote representatives. The main concern was that a prolonged shutdown could disrupt fuel supply, electricity generation, and even worsen foreign exchange pressures.
A truce was eventually brokered. Workers were to be redeployed within the Dangote Group without loss of pay or benefits, leading to a temporary suspension of the strike. Yet both sides remain cautious: unions insist on strict monitoring of the agreement, while management warns against sabotage and demands operational clarity.
In the heat of the standoff, NUPENG not only became a spokesperson but also a fierce critic of perceived betrayal. It lambasted former labour leaders,most notably Senator Adams Oshiomhole,for allegedly siding against PENGASSAN.
This rhetorical escalation highlights how unions see the dispute not as a local spat but as a test of labour solidarity and survival.
But the risks are not one-sided. Dangote’s refinery is no ordinary enterprise. With a capacity of 650,000 barrels per day, it is Africa’s largest single-train refinery and a linchpin in Nigeria’s quest to end fuel importation. Any disruption has far-reaching implications for economic, fiscal, and energy stability. During the brief strike, Nigeria’s daily oil output reportedly dropped by about 16 percent.
Meanwhile, the broader labour context looms large. Many workers fear that if a company as powerful as Dangote refinery weakens union influence, other employers may follow suit. For the unions, therefore, the battle is existential,they cannot afford to lose.
Yet critical questions linger. Could internal negotiations have been better handled? Did Dangote management ensure open communication? And did the unions overreach by ordering supply cuts that risked hurting the public? Clearly, both sides share responsibility for the escalation.
From a legal standpoint, many legal practitioners believe that the dispute underscores fundamental questions about trade union powers, employer prerogatives, and due process in dismissals and reorganizations. Nigerian labour law,they note ,guarantees freedom of association and protection from discrimination, but expressed concern that enforcement often falls short.
Economically, the ripple effects are sobering. Fuel supply bottlenecks push pump prices higher, worsen inflation, erode investor confidence, and threaten key sectors reliant on steady energy. Even electricity generation, which depends heavily on gas, faced disruption threats. Residents of Lokoja, Kogi State, bore the brunt of the clash between the two parties on October 6, 2025, as the price of a litre of gas rose from ₦950 to ₦1,250.
Still, the crisis presents an opportunity in the sense that,if properly managed, it could trigger overdue reforms in industrial relations,stronger dispute-resolution frameworks, clearer restructuring rules, and better safeguards for workers’ rights.
For a more stable future, experts suggest several steps. First, both parties should establish a joint oversight bodycomprising government, union, and independent arbitrators,to monitor agreement compliance. Second, all company reorganizations must be guided by transparent consultations, valid cause, and accessible grievance channels. Third, the legal framework should impose penalties for retaliatory sackings or union interference. Lastly, government should create an early-warning task force in the oil and energy sector to identify and mediate emerging conflicts before they spiral.
In addition, experts advocate capacity-building for union leaders in modern labour relations, mediation, and negotiation strategy. Unions must shift from confrontation to collaboration, while management should realize that industrial peace is itself a competitive advantage,repeated strikes only damage reputation and investor trust.
Meanwhile, the Bishop of the Catholic Diocese of Sokoto, Matthew Kukah, has led a group of concerned Nigerians in mediating the dispute between Dangote Refinery and PENGASSAN. In a joint statement signed by the Bishop and 12 others, they emphasized the need to uphold workers’ fundamental rights to unionize and warned that prolonged crises send negative signals to investors. The mediators urged both sides to embrace dialogue and mutual respect.
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, also linked the recent scarcity and price hikes in cooking gas to the refinery,union standoff. While acknowledging that government mediation had eased the immediate crisis, he stressed the need to strike a lasting balance between labour rights and national economic stability.
Ultimately, the Dangote–NUPENG standoff is more than a dispute over 800 workers—it is a contest of principles, power, and the evolving balance between capital and labour in Nigeria’s most strategic industry.
In the end, Nigerians will judge the outcome not merely by who wins, but by whether the resolution ushers in an era of constructive engagement or destructive confrontation,a defining test for all stakeholders in the nation’s industrial relations landscape.
Ahmed publishes The Reporters.
