Dangote Refinery–NUPENG Standoff: Fuel Scarcity Fears Linger Despite Government-Brokered Truce
By Joseph Iyaji | Akahi News
Labour Dispute Deepens Amid Allegations of Union Suppression
The recent standoff between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Dangote Petroleum Refinery has raised critical questions about labour rights, industrial governance, and the Federal Government’s authority over private conglomerates.
NUPENG had accused the refinery’s management and MRS, owned by Dantata, of compelling drivers to sign undertakings barring them from joining oil and gas unions—a claim the refinery has strongly denied. The dispute erupted into a nationwide strike on September 8, paralysing depots and fuelling fears of an imminent scarcity before the Federal Government intervened to broker a truce.
On September 10, after marathon talks, both sides signed a Memorandum of Understanding (MoU), prompting NUPENG to suspend its strike temporarily. However, threats of a fresh industrial action loom as the union accuses the refinery of breaching labour agreements and disrespecting national institutions.
Labour and Civil Society React
Fuel marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) urged all parties to respect the truce to prevent disruptions in petroleum supply chains.
“Fuel scarcity triggers panic-buying, price hikes, and economic hardship. Stakeholders must exercise restraint,” PETROAN said in a statement, thanking President Bola Tinubu for his “swift intervention.”
The Nigeria Labour Congress (NLC) expressed anger, describing the alleged actions of the refinery as “a gross violation of agreements.” NLC’s Acting General Secretary, Benson Upah, warned that the Congress might escalate matters if the MoU is not honoured.
Another NLC executive, speaking anonymously, accused the refinery of treating Nigeria’s institutions with disdain. “At one meeting, its representatives claimed the refinery was ‘not in Nigeria’ despite enjoying tax waivers, forex support, and concessions. If that is true, where then is the refinery located—the ‘Dangote Republic’? That is a slap on our sovereignty,” the source said.
Government Under Pressure
The Ministry of Labour, through its Director of Trade Unions, Amos Falonipe, confirmed receiving no official complaint but admitted it was closely monitoring the situation.
“If there is evidence of violation, we will summon all parties to ensure industrial peace,” Falonipe said.
However, critics argue the Federal Government has repeatedly failed to enforce agreements despite acting as guarantor. Analysts warn that if a conglomerate as powerful as Dangote can openly defy a state-brokered pact, it undermines both industrial harmony and the authority of the state.
Dangote Refinery Defends Position
In a detailed response dated September 11, 2025, Dangote Petroleum Refinery dismissed NUPENG’s allegations as “wholly inaccurate.” The company insisted trade union membership remains a voluntary right, denying any form of coercion.
“Assertions that drivers are compelled to waive union rights are categorically false. These allegations appear to be part of a broader narrative aimed at discrediting private sector progress,” the statement read.
The refinery highlighted its investments in Compressed Natural Gas (CNG) trucks, claiming over 4,000 CNG trucks have been deployed and over 60,000 direct jobs created with competitive pay, pensions, housing loans, and medical cover.
It rejected accusations of monopoly, citing over 30 refinery licences issued to other firms, including BUA and Waltersmith. “Our entry brought down the diesel price by over 30% in the past year, proving that competition, not monopoly, defines our operations,” it noted.
Looming Fuel Scarcity Threat
Despite the truce, NUPENG has threatened to resume its strike by September 15 if the refinery fails to honour the MoU. Any such action would cripple fuel distribution nationwide, triggering scarcity and price spikes.
Observers say the dispute now transcends labour rights, becoming a litmus test for Nigeria’s industrial governance framework and the Federal Government’s capacity to regulate corporate power.
For ordinary Nigerians, however, the immediate concern remains the same: Will this face-off plunge the nation into yet another round of fuel scarcity?
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