The Nigerian oil and gas sector is bracing for a potential showdown between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Dangote Refinery, a dispute sparked by the refinery’s plan to establish its own fleet of 4,000 CNG-powered trucks for fuel distribution. NUPENG alleges that this move, coupled with the refinery’s refusal to allow its drivers to unionize, constitutes anti-labor practices and a threat to the livelihoods of thousands of tanker drivers currently employed in the sector. The union contends that the refinery’s actions violate constitutional rights of association and international labor laws, setting a dangerous precedent for worker exploitation within the industry.
The heart of the conflict lies in the Dangote Refinery’s intention to directly control fuel distribution, a move NUPENG perceives as an attempt to monopolize the market, stifle competition, and ultimately dictate fuel prices at the expense of Nigerian consumers. The union argues that the refinery, under the guise of philanthropy, is engaging in economic sabotage that will negatively impact the living standards of ordinary Nigerians. NUPENG’s accusations underscore the inherent tension between private enterprise and labor interests, particularly in a sector as strategically vital as oil and gas.
NUPENG’s grievances stem from several meetings with Dangote Refinery representatives, including its founder, Aliko Dangote, and his cousin, Sayyu Ali Dantata, who heads MRS Holdings. The union claims that despite repeated appeals to reconsider the refinery’s stance on unionization, Dangote and Dantata remained unyielding. The union’s frustration was further exacerbated by the commencement of driver recruitment by MRS for the CNG trucks, with prospective drivers allegedly forced to sign agreements precluding union membership. This action, NUPENG asserts, demonstrates a blatant disregard for workers’ rights and a calculated effort to undermine the union’s influence.
NUPENG, feeling betrayed by the refinery it initially supported during its construction and commissioning, now accuses Dangote of reneging on the promise of job creation and local capacity building. The union emphasizes that its support was predicated on the expectation of a mutually beneficial relationship that would uphold fair labor practices. However, the refinery’s alleged actions have shattered this trust, leading NUPENG to view the refinery’s ambitions not as a contribution to national development, but as a calculated power grab that threatens to destabilize the downstream oil sector and exploit workers.
The union’s ultimatum to commence a nationwide strike on September 8th, 2025, involving a complete halt of fuel loading activities, underscores the gravity of the situation. This drastic measure, NUPENG argues, is a last resort to protect its members’ livelihoods and prevent the establishment of a exploitative labor model within the industry. The union has called on other labor organizations, both nationally and internationally, to stand in solidarity with their cause, raising the specter of a widespread labor confrontation with potentially crippling consequences for Nigeria’s fuel supply.
This unfolding dispute carries significant implications for Nigeria’s energy security and economic stability. The Dangote Refinery, hailed as a game-changer with its massive production capacity, was expected to mitigate Nigeria’s dependence on imported refined products and stabilize fuel prices. However, the labor conflict threatens to undermine these objectives, potentially leading to fuel scarcity and further economic hardship. The situation demands urgent intervention from regulatory agencies and government bodies to mediate a resolution and avert a crisis that could cripple the nation’s economy and disrupt the lives of millions of Nigerians. The standoff highlights the complex interplay between industrial development, labor rights, and national interests, raising crucial questions about the social and economic costs of unchecked corporate power.
