Dangote Compensates Axed Workers

Dangote compensates axed workers as he looks to reward for unjust dismissal

Following the unjust dismissal of over 800 workers, Dangote has offered to compensate them by offering five-year salary with no work.

This offer was made during the negotiation, “would have allowed the workers to stay home or pursue other opportunities while receiving their monthly salaries for five years,” the sources said.

Source close to the negotiation and agreements signed by Dangote refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) following the conflict that ensued after the dismissal of over 800 workers.

It is disclosed that the offer of salary for five years without work requirements came after a concern of potential damage they could cause.

Dangote Compensates Axed Workers

The offer, which was made amid negotiation, “would have allowed the workers to stay home or pursue other opportunities while receiving their monthly salaries for five years,” the sources said.

The source close to the negotiation table revealed that despite government representatives expressing concerns over financial burdens such an arrangement could pose, but Dangote refinery claimed that it would be a lesser burden than letting potentially not-trusted workers gain access into the facility.

Howbeit, many sources disclosed that PENGASSAN rebuffed Dangote’s option, claiming instead that the workers be reinstated to their various positions.

“Dangote offered to pay the sacked workers for five years to continue to stay in their homes, or do other things, but they will be paid every month for five years.

But they will not be allowed to go near the refinery, because they are not sure of not sabotaging. So, Dangote offered to pay them without work.

“Even though the government representatives at the negotiation said that it may be too much of a burden on Dangote.

Dangote, however, said that’s a lesser burden for him than for him to allow people who he cannot trust to be in his facility because he doesn’t want to compromise on sabotage.

“But PENGASSAN rejected it,” one of the sources said.

Revealing the rejection of the payment of salary proposed by Dangote, PENGASSAN General Secretary Lumumba Okugbawa stated that they agreed on a resolution that pay utmost attention on workers’ well-being.

Dangote Compensates Axed Workers

Mr. Okugbawa stated that negotiation was a process of give-and-take, where various options were considered and discussed until an agreement has been reached on both sides.

He stressed that what matters is the final agreement, which must be reached by both parties during the negotiation.

“So, the option that he wants to pay salary for five years without any work. I don’t think the option is important at the final stage.

The most important thing is that what did you agree? That’s what you will do and not, what they disagree on,” he said.

Close sources proposed that the redeployment option might not be suitable for the workers, as they might be to a location far away which may just mean that some of the w0rkers opt to resign rather than accepting reinstatement offer.

Dangote Compensates Axed Workers

He said that such a concern is a rumour, adding that workers are meant to report to their assigned locations and precede to work.

He compared the union’s role to pacifying issues between a husband and wife, where the result is to actualise a resolution and permit both parties to continue in peace.

“Those are speculations, even if the union was not there and they transfer you, won’t you go to where you are transfered to and continue your job.

I think Nigerians should look at the positive outcome of the negotiation, not the negative aspect.

“What union do after mediating is go back to their house and workers and the management will continue working together.

It’s like you try to settle a case between the husband and the wife. After settling the case between them you go back to your house and the husband and wife will live together.

Dangote Compensates Axed Workers

“So there is no need to create enmity between them at all. We hope to have good relationship and everything with Dangote refinery in the future.

All we are interested in is our workers’ welfare. Dangote Refinery is losing no kobo and people should not think that we are interested in his business model.

The most important thing is that these people have their jobs back,” he said.

The Dismissal

Some days ago, Dangote Petroleum Refinery dismissed some of its workers, pointing to recurrent act of sabotage that have posed major safety concerns and affected operational efficiency.

In a letter signed by the Femi Adekunle, Chief General Manager, Human Asset Management at Dangote Group, and sent to its staff members to inform the affected workers that their services were no longer required, from 25^th September, 2025.

The oil company stressed that the directive is not repugnant but significant measure to shield the facility and ascertain its long-term stability.

Dangote Compensates Axed Workers

“This exercise is not arbitrary. It has become necessary to safeguard the refinery from repeated acts of sabotage that have raised safety concerns and affected operational efficiency.”

It disclosed that the decision was taken in the best interest of the refinery as a result of intermittent cases of sabotage on the numerous units of the refinery which might pay its toll on human life.

After the dismissal, PENGASSAN directed its members to halt operational activities at the refinery by impeding gas supply to it.

The organisation said that the decision was to react to the directive by the refinery’s management to axe some workers who happen to be members of the union. It also alleged that Dangote refinery misinformed the public to justify its actions.

Also reacting to the dismissal of the workers, the union directed its members nationwide to withdraw their services in protest against the alleged sack of Nigerian workers at the refinery from midnight on 28 September.

Dangote Compensates Axed Workers

It accused the management of the refinery of anti-labour practices and discrimination against local employees, prompting the federal government’s intervention.

In a quick reaction, Dangote refinery called the strike order ‘illegal’ and cautioned PENGASSAN abide by Nigerian laws while operating.

It noted that PENGASSAN has no legal standing to halt or interfere with the refinery’s contract with third-party vendors for gas and crude oil supply.

Dangote Compensates Axed Workers