By James Aduku Odaudu

Introduction

Labour unions are vital in protecting workers’ rights, ensuring fair wages, and safeguarding welfare. In Nigeria’s oil and gas sector, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have historically played strong roles in defending their members.
However, their ongoing conflict with the Dangote Refinery risks undermining not only a private enterprise but also Nigeria’s broader national economic interests. This is a fight that must be urgently de-escalated.

• The Dangote Refinery as a National Asset

The $20 billion Dangote Refinery is not just a private venture—it is a strategic national asset. As the largest single-train refinery in the world, it has the capacity to meet Nigeria’s domestic demand for refined petroleum products and even export surplus to other African markets. For decades, Nigeria has depended on fuel imports despite being Africa’s top crude oil producer. The refinery offers a pathway out of this paradox.

Any disruption to its operations will have ripple effects: from fuel scarcity and increased transportation costs to inflationary pressures that affect every Nigerian household. The stakes are simply too high to allow union battles to derail such a transformative project.

• Labour Rights vs. Public Interest

The right of workers to unionize, negotiate, and advocate for improved welfare is fundamental. But in industrial relations, there is always a balancing act between labour rights and the public interest. When union actions threaten to destabilize a facility as strategic as the Dangote Refinery, the collective well-being of over 200 million Nigerians must come first.

By escalating their fight with the refinery, PENGASSAN and NUPENG risk:

i. Jeopardizing thousands of direct and indirect jobs created by the refinery.

ii. Triggering possible layoffs if operations are stalled.
iii. Undermining the long-term sustainability of the refinery, which would ironically harm the very workers they represent.

• Safeguarding Investor Confidence

The Dangote Refinery is a flagship project that has drawn global attention. If labour unions cripple its operations, it sends a dangerous signal to both domestic and foreign investors—that Nigeria is an unstable and hostile environment for large-scale industrial projects. This perception could deter future investments in infrastructure, energy, and manufacturing, sectors Nigeria urgently needs to diversify its economy.

Investor confidence is fragile, and policy inconsistency, regulatory uncertainties, and industrial unrest are among the top deterrents. A protracted conflict with the refinery would erode confidence, stall expansion, and hurt Nigeria’s international credibility.

• The Public Interest Dimension
Nigeria is already grappling with the aftermath of subsidy removal, unstable electricity supply, and rising transportation costs. Any further disruption in petroleum product supply will inflict additional hardship on citizens. Fuel scarcity, price hikes, and inflation will erode disposable incomes and deepen poverty levels.

The unions must recognize that this battle is not only between them and Dangote but between narrow industrial interests and the collective survival of Nigerians. The national interest must prevail.

• The Way Forward: Constructive Engagement

Stopping the conflict does not mean silencing the unions. Rather, it requires adopting more constructive mechanisms for dispute resolution. Several pathways exist:

i. Tripartite Dialogue: The Federal Ministry of Labour and Employment can convene a tripartite forum involving the unions, Dangote management, and government regulators to mediate disputes.

ii. Arbitration and Mediation: Independent arbitration panels can resolve disagreements on union recognition, welfare packages, or safety concerns without recourse to strikes.

iii. Corporate Social Responsibility (CSR) Negotiations: Instead of confrontation, unions can push for CSR projects, community benefits, and long-term staff development commitments.

iv. Phased Union Integration: If recognition is at the heart of the dispute, a gradual integration process could be negotiated to avoid sudden disruption.

• Conclusion
The fight between PENGASSAN, NUPENG, and the Dangote Refinery is not a private matter; it is a national issue with far-reaching implications. While the unions have legitimate concerns, their methods must not endanger Nigeria’s economic stability, job security, and energy independence.

A refinery that promises to save Nigeria billions in foreign exchange, stabilize fuel supply, and attract global investors should be protected, not sabotaged. For the sake of workers, investors, and citizens, this fight must stop—and constructive engagement must begin.

 Dr James Aduku Odaudu is a development administrator, communication consultant and the CEO of Sunrise Media Limited. He can be reached at jamesaduku@gmail.com

Swiss cement maker Holcim will exit its Nigerian business through the sale of its nearly 84 per cent stake in Lafarge Africa to China’s Huaxin Cement, the firm announced in a statement on Sunday.

The sale price was $1bn for a 100 per cent stake.

It stated, “The sale aligns with Holcim’s strategy to streamline its portfolio and focus on high-growth regions, including the upcoming spin-off of its North American business, which remains on track for a US listing in the first half of 2025.

“The transaction is expected to close in 2025, subject to regulatory approval, according to Holcim’s statement, which did not provide further details on the reason for this specific sale.”

Huaxin Cement is a major player in Nigeria’s cement market following its acquisition of a controlling stake in Lafarge Africa, which was finalized in August 2025. This deal gave the Chinese company control of four cement plants with a combined production capacity of over 10 million tonnes per year.
Acquisition of Lafarge Africa
The deal: Huaxin Cement acquired the 83.81% shareholding of Lafarge Africa from the Swiss building materials giant Holcim.

Transaction value: The acquisition was valued at $1 billion on a 100% equity basis before dividend adjustments. However, adjustments due to dividends paid to Holcim between January 2024 and August 2025 revised the final transaction consideration to $773 million.

Strategic move: The acquisition provides Huaxin with a strong foothold in Nigeria, Africa’s largest economy and most populous country. The company views Nigeria as a key strategic pivot for its expansion into West Africa.
Assets and market position
Following the acquisition, Huaxin gained control of Lafarge Africa’s four large-scale cement plants, which have a combined annual production capacity of 10.6 million tons

Ewekoro and Sagamu: Located in the South-West region.

Mfamosing: Located in the South-South.

Ashaka: Located in the North-East.

The acquisition makes Huaxin Cement a formidable competitor to existing market leaders like Dangote Cement and BUA Cement.

Legal and market controversies
The takeover was met with some controversy in Nigeria:
Minority shareholder lawsuit: A Nigerian minority shareholder, Strategic Consultancy, has challenged the deal in court, alleging secrecy and claiming that local investors were not given the right of first refusal.

Share price discrepancy: The mandatory takeover offer (MTO) for the remaining shares was set at a lower price than Lafarge Africa’s trading price at the time, leaving it uncertain how minority shareholders would respond.

Parliamentary scrutiny: In March 2025, the Nigerian Senate debated the sale, with some lawmakers calling for government oversight to protect shareholder rights and ensure transparency.

Outlook
Despite the legal challenges, Huaxin is set to become a dominant force in the Nigerian cement market. The company has a history of acquiring assets from Holcim across Africa to fuel its global expansion and is now implementing its strategy in Nigeria. In September 2025, Huaxin announced it is considering restructuring its overseas assets to support further expansion and operational flexibility.

The former Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bayo Ojulari, has opened up on the circumstances surrounding his resignation, citing internal resistance to reforms and entrenched interests as key reasons for his decision to step down.

Ojulari, who was appointed to lead NNPCL following the implementation of the Petroleum Industry Act (PIA), said his vision for transforming the national oil company into a commercially viable and transparent institution was consistently undermined by vested interests.

According to him, “I accepted the role with the utmost belief in President Bola Tinubu’s vision for reforming Nigeria’s oil and gas sector. However, over time, it became clear that there were internal forces resistant to change. These interests placed personal gains above national progress, making it impossible to move the reforms forward.”

While his resignation surprised many within and outside the industry, Ojulari noted that he left with a clear conscience, having initiated critical internal audits, streamlined procurement processes, and pushed for transparency in operations.

He emphasized that he was not forced out, contrary to some media reports. “I wasn’t sacked. I resigned because I no longer had the freedom and institutional backing to drive the changes that were necessary. It would have been a betrayal of my own values to stay on and become part of a system I sought to reform,” he said.

During his tenure, Ojulari was credited with driving cost-efficiency initiatives, reviewing legacy contracts, and initiating the clean-up of NNPCL’s joint venture operations. However, these actions reportedly ruffled powerful feathers, both within and outside the corporation.

Industry stakeholders have expressed mixed reactions to his exit. Some commended him for taking a principled stand, while others questioned the timing of his resignation amid ongoing fuel subsidy and crude oil production challenges.

As speculations continue about his next move, Ojulari remains optimistic about Nigeria’s oil sector. “We have the capacity, the talent, and the resources. What we need is the will—political and institutional—to do what is right.”

The Federal Government is yet to announce his replacement. However, insiders say a shortlist of potential successors is already under review by the presidency.

Ojulari’s departure marks another shake-up in President Tinubu’s oil sector reforms, which have seen key leadership changes in the NNPCL since 2023