The Battle for Association: Examining Worker Rights and Union Recognition at the Dangote Refinery- Dada, Olumuyiwa Olumide, ACIPM, HRPL

Introduction

The Nigerian oil and gas industry has long depended on organised labour for stability and progress. Two unions in particular stand out: the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

PENGASSAN emerged in 1978 after the restructuring of unions under the Trade Unions (Amendment) Decree of 1978. It represents senior and managerial staff, advocating for improved working conditions, job security, and welfare.¹ NUPENG, also a product of the 1978 restructuring, focuses on junior and rank-and-file workers.² Both unions, affiliated to the Nigeria Labour Congress, have since been indispensable voices in collective bargaining and industrial action within the petroleum sector.³

Against this historical backdrop, the recent dispute at the Dangote Refinery raises critical questions about worker rights, freedom of association, and the enforcement of constitutional and statutory guarantees in Nigeria. Reports indicate that Dangote Refinery terminated a large number of Nigerian workers, allegedly linked to union activities and membership of PENGASSAN and NUPENG.⁴ This article argues that such dismissals are contrary to the Constitution, the Labour Act, the Trade Unions Act, and binding precedents of the National Industrial Court of Nigeria (NICN), the Court of Appeal, and the Supreme Court.

Why Unions Must Be Recognised

Trade unions embody the right to freedom of association, expressly guaranteed under section 40 of the 1999 Constitution of the Federal Republic of Nigeria (as amended). This provision recognises the right of every person to assemble freely and associate with others, including forming or joining trade unions.

International obligations reinforce this constitutional guarantee. Nigeria has ratified the International Labour Organisation (ILO) Convention No. 87 on Freedom of Association and Protection of the Right to Organise and Convention No. 98 on the Right to Organise and Collective Bargaining.⁵

Beyond the legal framework, unions provide mechanisms for addressing workplace grievances, ensuring safety in hazardous environments, and preventing industrial unrest. In highly technical and risky sectors such as oil refining, workers’ collective voice is indispensable. Employers who undermine unionisation invite unrest and reputational damage.

The Dangote Terminations

Press reports in Reuters and Daily Trust confirm that Dangote Refinery has terminated large numbers of workers following visible union activity.⁶ NUPENG and PENGASSAN have condemned the actions as victimisation of employees for exercising their rights.⁷ The company has offered little justification other than vague claims of restructuring.

Such conduct, if true, directly undermines constitutional guarantees and amounts to unfair labour practice. The termination of employment based on union membership is unlawful under Nigerian law and recent judicial decisions.

The NICN and the Law on Termination

The NICN has increasingly shifted away from the outdated master and servant doctrine that allowed employers to terminate employment at will.

In Olawale Nathaniel Adewunmi v Atlas Copco Nigeria Ltd (NICN/LA/552/2018, judgment delivered 16 July 2024), the court held that a resignation obtained under duress amounted to constructive dismissal, which is unlawful.⁸ The decision affirms that coercion or pressure by an employer invalidates the termination process.

Similarly, in Aloysius v Diamond Bank Plc [2015] 58 NLLR (Pt 199) 92 (NICN), the NICN rejected the idea that employers could dismiss staff without reason. The court held that termination must be based on valid and justifiable grounds, aligning with international labour standards.⁹

In Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) v Schlumberger Anadrill Nigeria Ltd [2008] 11 NLLR (Pt 29) 164 (CA), the Court of Appeal condemned dismissals motivated by union activity as unlawful.¹⁰ This is a clear precedent directly applicable to the Dangote dispute.

The Supreme Court Position

The Supreme Court has also upheld the sanctity of freedom of association. In Organ & Ors v Nigeria Liquefied Natural Gas Ltd [2013] 10 NWLR (Pt 1361) 479 (SC), the Court affirmed that employees cannot be denied their right to unionise and that employers must respect this fundamental freedom.¹¹

In Eze v Spring Bank Plc [2011] 12 NWLR (Pt 1264) 162 (CA), later cited with approval by the Supreme Court, the court held that even within a master and servant relationship, termination cannot be arbitrary where statutory or contractual safeguards exist.¹² This marks a departure from absolute employer discretion.

Thus, Dangote Refinery’s reported dismissals contradict binding constitutional provisions and apex court authority.

Legal and Strategic Risks for Dangote

  1. Union victimisation: Termination linked to union activity is prohibited. Both the Court of Appeal and NICN have struck down such practices.
  2. Constructive dismissal: If employees were coerced into resigning or threatened with reprisals for union involvement, the precedent in Adewunmi v Atlas Copco applies.
  3. Procedural unlawfulness: Formulaic phrases like “services no longer required” without substantive reason contravene Aloysius v Diamond Bank Plc.
  4. Exposure to remedies: Remedies include reinstatement, arrears of salary, damages, and in extreme cases, exemplary damages for oppressive conduct.

Strong Advice to Dangote

  • Immediately halt all dismissals connected to union activity.
  • Reinstate unlawfully terminated employees to mitigate damages.
  • Recognise PENGASSAN and NUPENG as lawful representatives of workers.
  • Align termination practices with NICN and Supreme Court jurisprudence.
  • Pursue negotiated settlements with unions to preserve industrial peace.

Conclusion

The Dangote Refinery symbolises national pride and industrial ambition. Yet its sustainability depends not only on technical capacity but also on lawful and fair labour practices.

The Constitution, the Labour Act, the Trade Unions Act, and judicial precedents all affirm the right of workers to unionise and protect them from anti-union victimisation. The NICN, the Court of Appeal, and the Supreme Court have consistently ruled against arbitrary termination and constructive dismissal.

Dangote must respect these principles. Refusal to do so will invite costly litigation, reputational harm, and prolonged industrial unrest. The wiser path is partnership with unions through collective bargaining and mutual respect.

References 

  1. Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), ‘Our History’ https://www.pengassan.org/our-history accessed 27 September 2025.
  2. Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), ‘Profile/History’ https://nupeng.org/profile/ accessed 27 September 2025.
  3. PENGASSAN, ‘About Us’ https://www.pengassan.org/about-us accessed 27 September 2025.
  4. Reuters, ‘Nigeria’s Dangote Oil Refinery is Firing Some Nigerian Workers’ (Reuters, 26 September 2025).
  5. International Labour Organisation, Convention No. 87 (Freedom of Association and Protection of the Right to Organise Convention, 1948); Convention No. 98 (Right to Organise and Collective Bargaining Convention, 1949).
  6. Daily Trust, ‘Heavy Shake-up at Dangote Refinery Amid Rift with Oil Unions’ (Daily Trust, 26 September 2025).
  7. Punch, ‘NANS Warns NUPENG against Sabotage of Dangote Refinery’ (Punch, 26 September 2025).
  8. Olawale Nathaniel Adewunmi v Atlas Copco Nigeria Ltd NICN/LA/552/2018 (NICN, 16 July 2024).
  9. Aloysius v Diamond Bank Plc [2015] 58 NLLR (Pt 199) 92 (NICN).
  10. Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) v Schlumberger Anadrill Nigeria Ltd [2008] 11 NLLR (Pt 29) 164 (CA).
  11. Organ & Ors v Nigeria Liquefied Natural Gas Ltd [2013] 10 NWLR (Pt 1361) 479 (SC).
  12. Eze v Spring Bank Plc [2011] 12 NWLR (Pt 1264) 162 (CA).

 

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