Nigeria’s Dangote Oil Refinery has laid off some of its workers, raising concerns about stability at Africa’s largest private refinery project. A copy of a letter from the company, sighted by Reuters on Friday, confirmed the dismissals, which were to take effect by the evening of September 25, 2025.
Although the exact number of affected staff could not be confirmed at press time, officials of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) acknowledged the development. A union source who spoke on condition of anonymity said the union was aware of the sackings and was monitoring the situation.
The refinery, located in Ibeju-Lekki, Lagos, has been regarded as a strategic asset for Nigeria’s quest to end decades of dependence on imported petroleum products. With a nameplate capacity of 650,000 barrels per day, it is Africa’s biggest refinery and was commissioned in 2023.
However, recent challenges have slowed operations. In late August, the gasoline unit was shut down for repairs that are expected to last two to three months. Industry analysts say the temporary closure is not unusual for a new facility of such scale, but the layoffs have raised fresh questions about management’s response to operational setbacks.
The refinery, owned by billionaire industrialist Aliko Dangote, has been positioned as a game-changer for Nigeria’s downstream oil sector. By producing petrol, diesel, jet fuel, and other refined products locally, it is expected to reduce Nigeria’s foreign exchange demand on fuel imports and stabilise supply in West Africa.
But with the plant’s gasoline unit down, market watchers say the timing of the layoffs could deepen concerns about investor confidence and labour relations. Experts also warn that prolonged downtime could delay the refinery’s ability to meet domestic demand targets set by the Federal Government.
An oil and gas analyst, who preferred not to be named, told our correspondent that the refinery remains under pressure to balance high operating costs with the realities of Nigeria’s regulated fuel market. “Even temporary shutdowns have financial implications. If this is leading to job cuts, then it shows how much pressure the management is facing,” the analyst noted.
For its part, PENGASSAN said it would engage management to ensure workers’ rights are protected. The union has also called for clearer communication from Dangote Refinery on the scale and rationale for the dismissals.
The Federal Government has not yet issued an official response, though the refinery remains critical to Nigeria’s energy transition and economic stability. The Ministry of Petroleum Resources had earlier described the plant as a key part of Nigeria’s efforts to achieve energy security.
With the gasoline unit under repair and uncertainty over the fate of dismissed workers, attention will be on how swiftly Dangote Refinery resolves these challenges. The outcome could shape perceptions of Nigeria’s industrial flagship project and its role in addressing the country’s long-standing fuel supply problems.
