Nigeria's Dangote Oil Refinery Accused of Firing Workers for Union Membership, Yet Key to UK's Jet Fuel Crisis Plan
Daniel Boffey
UK Transport Secretary Heidi Alexander said part of the solution to the Hormuz Strait crisis is to import more fuel from the U.S. and West Africa, with Nigeria's Dangote refinery emerging as a critical link despite ongoing labor disputes. The refinery, accused of firing over 800 workers for union membership, supplied about 130,000 tons of jet fuel to the UK in March.
Nigeria's Dangote oil refinery in Lagos, accused by unions of firing over 800 workers for joining a union, is a key supplier in the UK government's plan to address jet fuel shortages ahead of summer.
UK Transport Secretary Heidi Alexander announced over the weekend that part of the solution to the Hormuz Strait crisis is to increase fuel imports from the U.S. and West Africa. The Dangote refinery, owned by Africa's richest billionaire Aliko Dangote, began producing jet fuel in January 2024. According to data from market intelligence firm Kpler, about 130,000 metric tons of jet fuel were imported into the UK in March from this massive facility.
However, the Dangote refinery has been criticized by unions as an "exploitative plantation." Last autumn, the Nigerian government had to mediate when the company was accused of firing workers after they joined the Pengassan union (the Nigerian Petroleum and Natural Gas Senior Staff Association). The union alleges over 800 Nigerian workers were sacked for voluntarily joining the union, and some were replaced by foreign labor, mainly from India.
Dangote denies the allegations, stating there was only a limited restructuring targeting a few workers who disrupted operations and undermined the refinery's stability. It insists it still employs over 3,000 Nigerian workers and does not prevent union membership. However, the Nigeria Labour Congress argues that Dangote has a "consistent history of anti-union and exploitative labor practices," paying some of the lowest wages in the Nigerian oil and gas sector.
The Nigerian government intervened, affirming the right to unionize and stating that Dangote would begin transferring dismissed workers to other companies within the group without reducing salaries. An internal company memo indicates affected employees are being recalled. A spokesperson for Dangote Industries said these workers have been redeployed to other sectors such as salt, sugar, and cement, and denied they were fired for union membership.
Since late February, fossil fuel shipments from the Persian Gulf have been largely halted as the Strait of Hormuz — through which one-fifth of the world's oil and gas passes — is effectively closed. UK refineries have been instructed to maximize jet fuel production as part of contingency plans, amid concerns that flights could be grounded this summer. The UK now has four refineries: Fawley (ExxonMobil), Humber (Phillips 66), Pembroke (Valero), and Stanlow (Essar).
Secretary Alexander acknowledged that domestic production is insufficient and the government is seeking other sources, but she expressed confidence that most travelers will have a normal summer. "We are importing more jet fuel from the U.S. We have also asked domestic refineries to maximize production. We have fuel from refineries on the west coast of Africa," she said.
Matt Stanley, head of markets at Kpler, said Dangote is producing jet fuel at full capacity. "In March, the UK bought 130,000 tons. There are 60,000 tons in transit arriving Tuesday. The main import hub for... Heathrow is the Isle of Grain. With jet fuel, you pay what you have to pay. The winners will be the U.S. refineries and Dangote. You go to whoever has the barrels. It's not about price, it's about volume, and they just want to keep the machine turning," he said.
