Nigerian refinery accused of sacking unionists is key to UK plan to tackle jet fuel shortages

A refinery in Nigeria accused of firing workers for joining a union has emerged as the key to the British government’s hopes of to save the summer vacation amid a shortage of jet fuel.

Heidi Alexander, the transport secretary, said at the weekend that part of the response to the Strait of Hormuz crisis was to import more fuel from the US and West Africa.

The main refinery on the west coast of Africa that exports fuel to the UK for commercial flights is Dangote in Lagos, which started producing aviation fuel in January 2024. According to market data company Kpler, around 130,000 tonnes of jet fuel were imported into the UK from the large Nigerian plant in March.

Owned by the richest man in AfricaAliko Dangote, the refinery has been accused by unions of being a “plantation of exploitation”.

Last fall, the Nigerian government had to mediate in a dispute when the company was accused of firing workers after they joined the Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan) union.

It was alleged that more than 800 Nigerian workers were fired after voluntarily joining the union and that some were replaced with foreign nationals, mostly from India.

This was denied by the company, which said a limited reorganization targeted a small number of workers who were disrupting operations and undermining the stability of the facility.

Dangote maintained that more than 3,000 Nigerians remained employed and that the company did not block union participation.

At the time of the dispute, Pengassan directed its branches at oil firms to force an immediate halt to the delivery of crude oil and gas to the refinery.

The Nigerian Labor Congress alleged that Dangote had a “consistent record of union-busting, exploitative labor practices”, adding: “We have it on good authority that Dangote Refinery today pays one of the lowest wages in the oil and gas sector in Nigeria and treats its staff below acceptable standards.”

The government stepped in and affirmed the right to union membership, adding in a statement that it had been agreed that the “management of Dangote Group will immediately begin the process of redeploying the disengaged staff to other companies within the Dangote Group, without any loss of pay.”

An internal company memo was reportedly sent last week confirming that affected staff were being recalled.

A spokesperson for Dangote Industries said the workers were re-inducted into the company in different sectors within the firm, including salt, sugar and cement, denying that they were sacked for union membership.

He said: “We have free association and we respect that.

“Unions can use any foul language to appeal to the masses their crook (leadership) claims to protect. Such buzzwords attract headlines and try to cover up their ineptitude. We don’t have problems with unions.

“The picture is clear today. The same unions applaud our industrialization strategy and express positive sentiments about our vision to save the country from ongoing fuel shortages, long queues at petrol stations, wasted man-hours, substandard and dirty fuel imports.”

Fossil fuels from the Gulf have been effectively shut down since February 28, following the de facto closure of the Strait of Hormuz shipping channel, through which a fifth of the world’s oil and gas flows.

British refineries were already asked to maximize aircraft fuel supplies As part of the government’s contingency planning, amid growing fears that plans will be grounded this summer.

There are four remaining refineries in the UK, following closures at Grangemouth and Lindsey in 2025: Fawley in Hampshire, owned by ExxonMobil; Humber in Lincolnshire, owned by Phillips 66; Valero’s Pembroke refinery near Milford Haven; and Essar’s Stanlow site in Cheshire.

The transport secretary conceded at the weekend that output from these refineries would not be sufficient and that other sources were being sought, but that she was confident it would be a normal summer for the majority of holidaymakers.

Alexander said: “We are importing a lot more jet fuel from the US. We have also asked the refineries here to maximize production. We have fuel for refineries that produce jet fuel here, we have more oil, jet fuel also coming from refineries on the west coast of Africa.”

Matt Stanley, the head of market engagement at Kpler, said Dangote is producing aviation fuel to its maximum capacity after recent internal problems.

He said: “In March (the UK) bought 130,000 tonnes. There’s 60,000 tonnes on the way now and should arrive (Tuesday). The main import hub for … Heathrow is in the Isle of Grain.

“With jet fuel, you will pay what you have to pay. I think the winners, if you will, the ones that will pick up market share, will certainly be the American refiners and Dangote. You go to whoever has the barrels. It’s less about prices, it’s about volume, and they just want to keep the wheels turning.”

A government spokesman said: “Since the closure of the Strait of Hormuz, the government has been monitoring UK jet fuel stocks and working with airlines, airports and fuel suppliers on the situation.

“UK airlines are clear that they do not currently see a shortage of jet fuel. Aviation fuel is typically purchased in advance and airports and their suppliers hold stocks of bunkered fuel to support their resilience.”