Nigerian refiner Dangote has laid off 800 workers without consultation, a leading trade union claimed today. The company says only a "very small number" of staff are affected, and that the move is part of an "ongoing reorganisation" to address "repeated acts of sabotage".
The layoffs cap a month of operational setbacks at the 650,000 b/d refinery, including crude receipts falling below half capacity, maintenance on a key gasoline unit and worker protests that halted truck loadings.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) accused Dangote of terminating 800 workers "without due consultation or any transparent justification", which it said "contravenes the legal rights granted to all employees in Nigeria". Pengassan has not yet said whether it will take steps to oppose or protest the move.
A Dangote spokesman declined to confirm the exact figure, but a company statement said only a small number of staff are affected. The company said the reorganisation was necessary to "safeguard the refinery from repeated acts of sabotage that have raised safety concerns and affected operational efficiency". It added that it would "continue to recruit Nigerian talent".
Dangote product loadings by truck were suspended for some of the first half of September because of industrial action by trade union Nupeng. The union accused Dangote of barring truck drivers from joining and requiring union stickers to be removed from vehicles.
Operations slowing down
Operational challenges have extended beyond labour disputes. The gasoline-producing residual fluid catalytic cracker (RFCC) unit at Dangote has been under maintenance this month. A source close to the refinery said it was likely to return to full capacity by early October.
Meanwhile, Dangote has received just 250,000 b/d of crude so far in September, according to preliminary Vortexa data. If that average holds for the full month, it will be the lowest since September 2024 — one month after credit rating agency Fitch downgraded Dangote, citing lower-than-projected profit. Sources said at the time that banks temporarily restricted Dangote's access to trade finance, which is needed for crude purchases.
The refinery's crude intake patterns are shaping its export volumes. Dangote received record crude volumes last month and is now loading its highest-ever volume of products by sea, likely as a result. Product loadings may slow next month, as crude receipts have declined this month.
Preliminary Vortexa data show 320,000 b/d of products have loaded so far in September, with low-sulphur straight-run (LSSR) fuel oil making up the largest share. The RFCC usually upgrades LSSR, so its outage leaves more LSSR available for export. Blocked truck loadings may also be stimulating seaborne exports as a substitute.
West Africa has not yet drawn greater arrivals of products from other regions this month. The preliminary Vortexa figures show less than 1mn t of gasoline and components arriving in the region — below the year-to-date average, which is the lowest of any year on Vortexa's record.
The possibility of increased demand for gasoline imports to west Africa may already be contributing to a counter-seasonal rally in European gasoline crack spreads. Late September premiums are typically depressed by the switch to winter-grade product, but Eurobob non-oxy barges in northwest Europe averaged a $19.34/bl premium against North Sea Dated in the first half of the month — more than double the $7.79/bl average for the same period last year.
