Daniel Otera
The Nigeria Union of Petroleum and Natural Gas Workers has accused the Dangote Petroleum Refinery of sponsoring division within its Petroleum Tanker Drivers branch, resisting workers’ rights to unionisation, and deploying what it described as “falsehoods” to undermine the union. NUPENG also accused the company of using a “Greek gift” of free nationwide petroleum delivery to undermine the union and stifle competition.
In a statement signed by its National Executive President, Williams Akporeha, and the General Secretary, Afolabi Olawale, on Friday, the union dismissed a press release by the Dangote Group on Thursday as “an epitome of unconscionable capitalist falsehood aimed at hoodwinking Nigerians and crushing NUPENG.”
On Thursday, the Dangote Petroleum Refinery dismissed recent allegations made by NUPENG that it banned tanker drivers from joining the union, insisting that claims of anti-labour practices, monopolistic behaviour, and planned fuel price hikes are “entirely unfounded”.
NUPENG, on Monday, shut down depots, protesting that the Dangote refinery did not allow the newly recruited drivers for its 4,000 compressed natural gas-powered trucks to join the union. The shutdown of depots lasted till Tuesday, when it was suspended following an agreement reached by both parties at a meeting organised by the Ministry of Labour and Employment.
However, on Thursday, NUPENG said Dangote was not ready to abide by the terms of the agreement.
But in a statement made available to our correspondent by the spokesman for the Dangote Group, Anthony Chiejina, the company stated that the allegations that it was undermining union activities and threatening workers’ welfare through its new deployment of CNG-powered trucks were not true. The Dangote refinery reiterated its full support for constitutionally protected labour rights, stating that employees are free to affiliate with any recognised trade union.
Reacting on Friday, NUPENG alleged that despite signing a Memorandum of Understanding on September 9, which it said acknowledged the company’s initial resistance to unionisation, the Dangote refinery on September 11, 2025, instructed drivers to remove NUPENG stickers from their trucks and replace them with those of the newly formed Direct Trucking Company Drivers Association, allegedly created by the management.
“Our members have stoutly resisted this development,” the statement said, adding that the refinery has been attempting to sponsor parallel structures within the PTD branch since 2023 by recruiting members who had lost union elections into the DTCDA.
NUPENG also linked some of the individuals supporting the company in the media to ongoing criminal cases.
The union further warned Nigerians against what it described as the “Greek gift” of free nationwide petroleum delivery by the Dangote refinery, alleging that the move was designed to stifle competition and force drivers into the company-controlled association. “It is on record that Dangote Group does not allow unionisation in its cement and sugar plants across Nigeria”, NUPENG claimed, stressing that the same anti-union stance is now being extended to refinery workers.
The union called on Nigerians and the international community to resist any attempt to deny refinery workers and drivers their right to freedom of association and unionisation, warning that its leaders must not be harmed in the course of the struggle. “Our solidarity remains constant, for the union makes us strong”, the statement concluded.
The dispute stems from the Dangote Refinery’s plan to deploy 4,000 CNG-powered trucks for direct fuel distribution, which began rolling out in August 2025 after delays due to logistics issues in China.
The refinery, with a capacity of 650,000 barrels per day, aims to meet 100% of Nigeria’s refined petroleum needs and export surplus, potentially saving the country up to $10 billion annually in import costs.
Nigeria’s oil sector contributes about 9% to GDP and accounts for 90% of export earnings, but the country imports nearly all its fuel despite producing 1.49 million barrels per day in Q1 2025
The refinery’s initiative, backed by a N720 billion investment, is projected to create 60,000 direct jobs, but NUPENG argues it threatens existing livelihoods for over 30,000 tanker drivers under its PTD branch.
NUPENG, registered in 1978 and affiliated with the Nigeria Labour Congress, represents about 50% of the sector’s 64,000 workers, focusing on blue-collar roles with union members earning an average of $490 monthly compared to $140-$225 for non-union contract workers.
The Petroleum Tanker Drivers branch, key to fuel distribution, has enforced loading rules since the 1980s to maintain standards, but the refinery’s direct model challenges this, leading to the shutdown that halted operations at major depots in Lagos, Warri, Port Harcourt, and Delta on September 8-9, 2025.
No widespread fuel shortages occurred due to stockpiles, but the action disrupted supply chains and drew solidarity from PENGASSAN, NLC, TUC, and international groups like IndustriALL.
The MoU, signed at the DSS headquarters with ministers from Finance, Labour, and NMDPRA, recognised unionisation as a right under the 1999 Constitution and ILO conventions, mandating the process from September 9-22, 2025, without employer interference or victimisation.
Signatories included Sayyu Dantata for Dangote, Williams Akporeha and Afolabi Olawale for NUPENG, and representatives from NLC and TUC. The DTCDA, formed by Dangote for CNG drivers, was declared illegal by the Ministry of Labour and agreed to disband.
NUPENG claims the September 11 instruction to remove stickers and use DTCDA ones breaches this, halting loading again as union officials blocked non-compliant trucks.
The refinery denies coercion, stating union membership is voluntary and the dispute is internal to PTD, not involving the refinery directly.
It highlights compliance with the deregulated market under NMDPRA and notes over 30 other refinery licences issued to competitors like BUA.
The conflict echoes broader tensions in Nigeria’s oil sector, where casualisation has risen since the 1980s, with unions pushing against non-standard jobs that affect 70% of workers. NUPENG’s actions have averted crises before, but unresolved disputes risk further disruptions in a sector handling 9.7 billion electronic transactions worth N387 trillion in 2024.
The refinery’s free delivery offer, using CNG trucks to cut costs and reach rural areas, aligns with the government’s energy transition but faces scrutiny for potential monopoly, with intra-African trade at 18% versus Europe’s 70%.
Parties are to report to the Labour Minister post-September 22, but NUPENG has placed members on red alert for possible resumption.