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Home News Business

Nigeria scrambles to end oil strike after Dangote Refinery sacks 800 workers

Paul by Paul
October 1, 2025
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Abuja/Lagos — Senior government officials opened emergency talks with oil-sector unions after a nationwide strike erupted over the dismissal of 800 workers at the Dangote Refinery, Africa’s largest crude-processing plant.

Union leaders called the mass layoff a “clear violation” of Nigeria’s labour laws and international conventions, accusing the company of union-busting and unsafe practices. Several laid-off staff said they were denied basic personal protective equipment while on the job.

The walkout has disrupted operations across key oil and gas institutions, an alarming development for an economy where petroleum earnings account for roughly 80% of government revenue. Officials warned prolonged stoppages could squeeze domestic fuel supply, pressure the naira, and deepen inflation.

The Dangote Group rejected the allegations, saying the employees were terminated for “sabotage” and denounced the strike as “criminal conduct.” The conglomerate said core operations remain secure and insisted it would not negotiate “under duress.”

At the centre of the standoff is the $20 billion, 650,000-barrel-per-day refinery, inaugurated in 2023 by billionaire Aliko Dangote and billed as the project that would end Nigeria’s costly reliance on imported refined fuel. Instead, it has become a flashpoint for labour unrest, with unions demanding immediate reinstatement of the sacked workers, formal recognition of shop-floor representatives, and independent safety audits.

Labour leaders say the dispute is about more than the 800 jobs, citing alleged breaches of Nigeria’s Trade Unions Act and International Labour Organization Conventions 87 and 98 on freedom of association and collective bargaining. “This is a red line for the entire energy workforce,” one union official said after a closed-door session with government mediators.

The presidency and labour ministry have urged both sides to de-escalate while talks continue. Officials are weighing options that include a cooling-off period, third-party mediation, and a joint verification of the layoffs. Industry regulators have also been drawn in to assess potential market impacts if the stoppage widens.

Analysts warn that an extended shutdown could ripple through the downstream sector, delay product deliveries, and revive fuel-queue anxieties. “Confidence in the refinery’s stabilising role was just beginning to build. A protracted strike risks reversing those gains,” a Lagos-based energy consultant said.

Unions have signalled they will keep facilities shut until concrete concessions are secured; the company says it will pursue legal remedies against “unlawful interference.” With positions hardening on both sides, the outcome of this week’s negotiations will determine whether Nigeria averts a broader energy crunch—or slides deeper into an industrial showdown.

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