Nigerian Refinery Accused of Sacking Union Members Key to UK Jet Fuel Strategy

Strategic Role in UK Jet Fuel Supply

The Dangote Refinery in Lagos, Nigeria, has become a key supplier of jet fuel to the UK as the Strait of Hormuz closure disrupted a fifth of global oil and gas supplies. Owned by billionaire Aliko Dangote, the refinery started producing aviation fuel in January 2024. Kpler, a market data firm, reported that 130,000 tonnes of jet fuel were imported to the UK from Dangote in March 2026, making up about 15% of the country’s total aviation fuel imports during that period. This positions the refinery as a major player in the UK’s plan to diversify fuel sources amid global supply chain issues. Nigeria itself struggles with domestic jet fuel shortages, creating a supply chain paradox.

Labor Dispute and Government Intervention

The refinery’s role in the UK’s fuel strategy has been overshadowed by a labor dispute. Last autumn, the Nigerian government stepped in after claims that Dangote dismissed over 800 workers for joining the Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) union. Pengassan alleged that more than 800 Nigerian workers were replaced by Indian nationals and accused the refinery of labor abuses, including low wages and poor working conditions. The Nigerian government ordered affected workers to be redeployed within the Dangote Group without losing pay, a measure now in place. A Dangote spokesperson said, ‘We have free association and we respect it.’

“We have free association and we respect it.”

UK’s Fuel Strategy and Supply Chain Resilience

Transport Secretary Heidi Alexander has stressed the UK’s plan to import fuel from the US and West Africa to counter the Hormuz crisis. The closure of the strait, which handles 20% of global oil transit, has disrupted supply chains, pushing the UK to rely on alternatives. Dangote’s contribution is especially important as British refineries like Fawley and Humber face capacity limits. Kpler noted that 60,000 tonnes of jet fuel were en route to the UK from Dangote at the time of the report. This fits broader trends of energy import diversification, as highlighted in a 2025 International Energy Agency (IEA) report, which found a 12% rise in African fuel exports to Europe since 2023. The report also shows the UK’s 30% increase in fuel purchases from West Africa compared to 2023, driven by geopolitical tensions and regional energy security needs.

Nigeria’s Domestic Fuel Shortages

Nigeria faces its own jet fuel shortages, worsened by the Hormuz closure. The country used about 554,000 US gallons (2.1 million liters) of jet fuel daily last month, according to regulator data. Fuel marketers say they’re in talks with operators for temporary fixes, with strikes unlikely. To address the crisis, the Nigerian government introduced a 30-day credit window for fuel marketers, allowing them to supply airlines directly. This policy aims to stabilize the aviation sector while ensuring local crude access for domestic refining. The policy reflects broader efforts to ease supply chain disruptions, as noted in a 2025 World Bank study on energy import diversification.

Historical Labor Conflicts in Nigeria’s Oil Sector

The Dangote dispute mirrors past labor conflicts in Nigeria’s oil industry. In 2017, Shell Petroleum Development Company faced similar accusations of union-busting after a 20-day strike that halted production. The Nigerian government then brokered a settlement, requiring wage revisions and better labor conditions. This shows that while labor disputes can temporarily impact production, government intervention often resolves them, though with long-term effects on corporate labor practices. The 2025 Dangote dispute highlights a growing trend of union activism in the sector, with the Nigerian Labour Congress accusing the refinery of systemic labor abuses. These patterns show the ongoing challenges of balancing labor rights with operational efficiency in Nigeria’s energy sector.

Global Energy Security and Labor Practices

The Dangote case highlights the complex relationship between energy security and labor practices in global supply chains. While the refinery’s capacity to supply jet fuel to the UK is a key asset, its labor disputes show the risks of relying on a single source for strategic energy needs. The Nigerian government’s intervention in the Dangote-PENGASSAN dispute reflects a broader pattern of state involvement in resolving labor conflicts, but it also raises questions about the sustainability of such interventions in the face of ongoing labor activism. For the UK, relying on Dangote and other West African suppliers represents both an opportunity to diversify energy sources and a risk that could destabilize supply chains if not managed carefully. As global energy markets shift, the Dangote refinery’s role in the UK’s fuel strategy will likely remain a focus of geopolitical and economic analysis.

Competing Interpretations of the Dangote Case

The Dangote case has led to different views on its long-term impact. Some analysts see the refinery’s role as a breakthrough for African energy exports, while others warn about the risks of over-relying on a single supplier. The Nigerian government’s 30-day credit window policy, for example, has been praised for its immediate benefits but criticized for its limited scope in addressing systemic fuel shortages. Similarly, Dangote’s claims of operational reorganization have been met with skepticism by labor groups, who argue the company’s actions reflect a broader pattern of union-busting in the sector. These differing perspectives highlight the challenges of balancing economic growth, labor rights, and energy security in Nigeria’s oil-dependent economy.

Trends in Energy Supply Chain Diversification

The UK’s reliance on Dangote reflects a broader trend of energy supply chain diversification, driven by geopolitical tensions and the need for regional energy security. A 2025 World Bank study found that 78% of European countries have increased imports from Africa and the Americas to reduce dependence on Middle Eastern oil, reshaping global energy geopolitics. This shift is especially clear in aviation fuel, where the UK’s 2026 import strategy shows a 30% rise in fuel purchases from West Africa compared to 2023. As the Strait of Hormuz remains a geopolitical issue, the Dangote refinery’s role in the UK’s energy strategy underscores the growing importance of African energy infrastructure in global markets. However, this reliance also exposes the UK to risks from labor disputes and operational disruptions at critical supply points, raising questions about the long-term viability of such diversification strategies.