Year-in-review: Dangote Refinery vs Unions, Marketers: Inside Nigeria’s 2025 Oil Sector Crisis
In 2025, Nigeria’s oil and gas industry faced serious tension as Dangote Petroleum Refinery became involved in several major disputes. These conflicts were with labour unions, fuel marketers, and government regulators.
The issues revealed deep problems around worker rights, fuel pricing, regulation, and control of the market.
Source: UGC
As the largest refinery in Africa grew more powerful, its disagreements led to strikes, court cases, government investigations, and strong public disputes.
These events showed how difficult it is to balance private business interests, government control, and the needs of workers and other industry players in Nigeria’s fuel sector.
In this end of year review, Legit.ng has highlighted some of these clashes, which even generated so much discussion across all spectrums.
Dangote Refinery, PENGASSAN clash over workers
In late September 2025, Dangote Refinery had a serious conflict with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The union said the refinery laid off hundreds of workers who tried to form a union. PENGASSAN accused the company of violating workers’ rights and operating unfair labour practices.
In response, PENGASSAN told its members to stop supplying gas and crude oil to the refinery and announced a strike. This action affected refinery operations, reduced electricity supply, and raised fears of fuel shortages and economic damage.
The government and courts later stepped in to limit the strike. After negotiations, the union suspended its action, but warned that the dispute could start again if the remaining issues were not resolved.
NUPENG threatened strike over issues with Dangote Refinery
Around the same time, Dangote Refinery also clashed with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in September 2025. The union accused the refinery of breaking an agreement by stopping workers from joining the union.
NUPENG threatened a nationwide strike and disruption of fuel transport. Security agencies and government officials intervened, and both sides signed an agreement on September 8, 2025. The deal allowed workers to unionise and suspended the strike.
After the agreement, NUPENG called off the strike the next day. Courts also issued orders to stop further disruptions while the government monitored the situation.
Dangote clashed with DAPPMAN over pricing, supply
Between September and November 2025, Dangote Refinery argued with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). The dispute focused on fuel prices and supply rules.
Dangote claimed that DAPPMAN wanted the government to pay a N1.5 trillion yearly subsidy so its members could sell fuel at prices similar to Dangote’s. DAPPMAN strongly denied this and said the claim was false.
The refinery also stopped certain fuel sales methods, which upset marketers demanding fair access and clearer rules. Industry leaders later called on both sides to calm tensions and work together to protect the fuel market.
Dangote accused NMDPRA of corruption
In 2025, Dangote Refinery also had ongoing issues with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The refinery claimed NMDPRA wrongly allowed fuel imports despite local refining capacity existing. Dangote argued this broke the law and harmed local producers.
The company asked for N100 billion in damages but later withdrew the case, although disagreements continued.
Later in the year, Dangote’s leadership publicly accused the head of NMDPRA, Mr Farouk Ahmed, of corruption and unfair regulation.
He also accused Ahmed of colluding with international traders and oil importers to frustrate local refining through the continued issuance of import licences for petroleum products.
This led to ongoing investigations by lawmakers and increased pressure on the regulator.
The dispute culminated in Ahmed's eventual resignation following a meeting with President Bola Tinubu.
Source: Getty Images
Outlook for 2026
The 2025 conflicts involving Dangote Petroleum Refinery and some major organisations in the oil sector highlight industry conflicts and regulatory challenges.
While negotiations and government interventions helped prevent prolonged disruptions, the events underscored the need for clear regulations, fair labour practices, and cooperation among stakeholders to ensure stability.
Moving forward, balancing private investment with public interest remains crucial for the industry’s sustainable development.
Dangote unveils hotline to report filling stations
Meanwhile, Legit.ng earlier reported that Dangote Petroleum Refinery has introduced a hotline for Nigerians to report MRS filling stations selling above the approved N739 nationwide.
The refinery says the initiative is aimed at protecting consumers and ensuring price transparency, particularly at its partner petrol stations.
Dangote Refinery warned against artificial scarcity and urged regulators to act against offenders, just as it advised Nigerians not to buy above the approved pump price.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
