Dangote Refinery Strike in Nigeria Resolved After Worker Reassignment Deal

By Mintesinot Nigussie
Published on 10/02/25

Nigeria’s Dangote refinery avoided a potential supply disruption after the country’s main oil union agreed to end a threatened strike, Bloomberg reported.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) reached an agreement following two days of negotiations with the government and company officials.

The dispute arose after more than 800 employees were dismissed for alleged acts of sabotage, prompting the union to threaten curbs on crude deliveries to the 650,000-barrel-a-day facility. Under the resolution, the affected workers will be reassigned to other entities within the Dangote Group without losing pay, the Ministry of Labour and Employment confirmed on Wednesday.

The refinery, Africa’s largest, supplies up to half of Nigeria’s gasoline demand and occasionally exports fuel, making it a key player in the country’s energy sector. A disruption would have also affected Nigeria’s average daily crude exports of 1.5 million barrels.

Market reaction had been swift. Gasoline futures surged, recording their biggest gains relative to crude since June when news of the strike emerged. Yet, officials insisted production remained steady. Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission, said the strike had minimal effect, while Dangote Industries vice-president Devakumar Edwin reported “zero impact” on operations.