The brewing confrontation between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Dangote Petroleum Refinery has escalated into one of the fiercest labour-business showdowns in Nigeria’s recent history. It is not just a quarrel about trucks and drivers; it is about constitutional rights, monopoly concerns, and the reconfiguration of power in Nigeria’s petroleum sector.
At the core of the dispute is Dangote Refinery’s plan to deploy 4,000 newly imported Compressed Natural Gas (CNG) trucks for direct nationwide fuel distribution. Unlike the traditional model that relies heavily on independent tanker drivers, depots, and petroleum marketers, Dangote’s logistics plan cuts out middlemen, delivering petrol and diesel directly to filling stations, manufacturers, telecom operators, aviation firms, and bulk consumers.
While the company argues that this innovation will reduce logistics costs, up to 30% of pump prices, stabilize supply, and encourage cleaner energy use, NUPENG sees it as a double-edged sword. The union alleges that drivers recruited for the scheme are being forced to sign undertakings never to join any union within the oil and gas sector, a practice it describes as “a flagrant violation of workers’ constitutional rights.”
In response, NUPENG issued a strike notice effective Monday, September 8, 2025, threatening to cripple petroleum distribution nationwide. For a country still recovering from subsidy removal shocks, 30% inflation, and recurring fuel crises, the threat could not be more explosive.
Union Pushback and Divisions
NUPENG President Williams Akporeha and General Secretary Afolabi Olawale have accused Dangote and his cousin Sayyu Dantata of MRS Oil of spearheading “union-busting and monopolistic capture” of Nigeria’s downstream sector.
“We will resist every attempt to silence workers or force them into company-controlled associations,” Akporeha declared.
The Nigeria Labour Congress (NLC) quickly backed NUPENG, branding Dangote’s actions as “anti-worker and anti-union,” and placing all affiliates on Red Alert for possible solidarity action.
But not all stakeholders agree. The Petroleum Tanker Drivers (PTD) branch of NUPENG, long seen as the union’s militant arm, dismissed the strike notice as “insensitive and unacceptable.” The Direct Trucking Company Drivers Association (DTCDA) also criticized NUPENG for “coercive recruitment” and insisted drivers should retain freedom of choice in union membership.
Read also:
- Fuel scarcity looms as NUPENG insists on strike despite FG intervention over Dangote refinery dispute
- Edo NLC to join NUPENG in protest against monopoly in oil sector
- Stakeholders urge government to fix toads, cut checkpoints to prevent tanker explosions in Taraba, Adamawa
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) distanced itself from strike threats, pledging support for Dangote’s model. In contrast, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) announced a three-day suspension of operations to support NUPENG’s call for fair competition.
The divisions highlight a deeper crisis: while some see Dangote as an existential threat to unions and small players, others view him as a welcome disruptor of entrenched inefficiencies.
What the Law Says
Labour experts note that both sides are treading a thin legal line.
Section 40 of the Nigerian Constitution guarantees the right to freedom of association.
Section 9(6) of the Labour Act forbids employers from forcing workers to join, or not join, a union.
ILO Conventions 87 and 98, ratified by Nigeria, protect workers’ rights to organize and bargain collectively.
This means if Dangote is indeed compelling drivers to renounce union membership, it is unlawful. Yet, NUPENG’s insistence on automatic membership for drivers also undermines the same constitutional protections.
As labour analyst Yinka Chukwuemeka Ogunnubi observes: “The courts have affirmed that multiple unions can coexist in the same sector. Both Dangote and NUPENG appear to be overreaching. The law provides mediation, arbitration, and lawful strikes, but neither side is fully respecting these processes.”
Government Intervention
The Federal Government is deeply concerned. Labour Minister Muhammad Maigari Dingyadi has summoned all parties to Abuja for an emergency conciliation.
“I plead with NUPENG to rescind their decision to shut down the petroleum sector,” Dingyadi said. “Even one day of strike will inflict severe hardship on Nigerians and cost billions in lost revenue.”
The government’s dilemma is clear: it must balance workers’ rights, protect competition, and at the same time avoid a nationwide fuel crisis that could trigger unrest.
The Political Economy of Oil and Union Power
To grasp the gravity of this battle, one must revisit NUPENG’s historic role. Since the 1990s, the union has wielded immense power, crippling governments with strikes that went far beyond wage disputes. During the military era, NUPENG strikes hastened regime collapses. In democracy, they shaped subsidy debates and fuel pricing.
Dangote’s direct distribution model now threatens that power base. By bypassing the traditional tanker system under NUPENG’s control, the refinery is re-engineering the oil economy in ways that diminish union influence. For NUPENG, this is not just about constitutional rights, it is about institutional survival.
Monopoly Concerns: Dangote’s Growing Grip
Labour issues aside, Dangote’s growing dominance in Nigeria’s oil sector has raised alarms among economists and policymakers. The refinery already enjoys:
A near-exclusive license for large-scale refining of petrol and diesel; Preferential access to crude oil supply through NNPC Ltd; A government-backed ban on certain refined product imports; With direct distribution added, Dangote could control pricing from refinery gate to petrol pump.
Short-term, prices may dip due to efficiency. But long-term, rivals such as depot owners, modular refiners, and even NNPC could be sidelined. Critics warn this could replace a state monopoly with a private monopoly, potentially worse for consumers.
PETROAN Publicity Secretary Dr. Joseph Obele recently revealed that the association had struck international deals to import petrol at ₦800/litre, well below Dangote’s ₦1,015–₦1,028/litre rates. Yet, Dangote’s influence allegedly pressures regulators to curb import licenses, shielding his refinery from competition. This, critics argue, is market capture in its rawest form.
Dangote’s Defence
Aliko Dangote rejects the monopoly tag. Speaking with journalists, he said: “I am 67 years old. In less than three years, I will be 70. I can’t take the refinery to my grave. Everything I do is in the interest of my country. If they believe I am a monopolist, let them buy me out. Let NNPC run the refinery. At least, the country will still benefit.”
Dangote also points to product quality. Recent tests by the House Committee on Downstream found that Dangote’s diesel had a sulphur content of 87.6 ppm, far cleaner than imported alternatives that exceeded 1800 ppm.
For Dangote, the real opposition comes from vested interests that profit from fuel importation.
The Human Cost: Nigerians in the Middle
While Dangote and NUPENG clash, ordinary Nigerians brace for hardship. Every day of strike action risks: Long fuel queues; Soaring transport fares; Power shortages as diesel generators run dry and Billions lost in economic activity.
For a country battling inflation, unemployment, and subsidy aftershocks, another round of scarcity could deepen public anger against both government and big business.
What’s at Stake
The NUPENG vs Dangote conflict is not a simple union dispute. It is a battle for control of Nigeria’s oil lifeline.
For NUPENG, it is about preserving relevance in a changing industry.
For Dangote, it is about protecting a $20 billion investment and securing market dominance.
For the government, it is about preventing economic paralysis.
For Nigerians, it is about survival in a system where fuel costs dictate the price of everything.
How this showdown is resolved could set the tone for union rights, competition policy, and energy security in Nigeria for decades.
Beyond Labour, Beyond Monopoly
At its heart, the dispute raises a bigger question: What kind of oil economy does Nigeria want?
One dominated by a single private operator? One held hostage by militant unions? Or one regulated to ensure fair competition, worker rights, and consumer protection?
The answers will shape not just fuel prices but also Nigeria’s democratic stability, industrial future, and social cohesion.
For now, Dangote’s CNG trucks and NUPENG’s tankers stand idle—symbols of a nation caught between a billionaire’s refinery and a union fighting for its life.
Until the government enforces balance—curbing monopolistic tendencies while safeguarding workers’ rights—Nigerians will remain the biggest losers in a fight they did not start, yet cannot escape.
