A tenuous agreement between the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the $20 billion Dangote Petroleum Refinery has unraveled, sparking a heated industrial dispute that jeopardizes fuel supply stability and challenges the Federal Government’s ability to uphold labor agreements.
The conflict stems from NUPENG’s claims that the Dangote Group violated a Memorandum of Understanding (MoU) signed on September 9, 2025, which permitted tanker drivers and other workers to unionize freely. The MoU, signed at the Department of State Services (DSS) headquarters in Abuja and mediated by the Minister of Labour and Employment, Muhammadu Dingyadi, was witnessed by representatives from the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), DSS, and other agencies.
NUPENG’s National President, Williams Akporeha, accused Sayyu Aliu Dantata, a cousin of Aliko Dangote and a key figure in the refinery’s trucking operations, of breaching the agreement. Akporeha alleged that within 48 hours of the MoU’s signing, Dantata ordered drivers to remove NUPENG stickers from their vehicles and enter the refinery in defiance of union loading protocols. He further claimed Dantata used a helicopter to intimidate workers and called in the Nigerian Navy to suppress union officials, stating, “Our members are waiting for him and his agents to run them over.”
NUPENG condemned Dantata’s actions as “impunity” and urged the Federal Government to prevent taxpayer-funded security agencies from being used against workers. Akporeha warned, “His wealth cannot make him above the law,” and placed union members on “red alert” for a potential nationwide strike, which was suspended after the MoU was signed. NUPENG also appealed to the NLC, TUC, civil society, and international labor allies for support.
On Thursday evening, NUPENG’s General Secretary, Afolabi Olawale, alleged that Dangote management planned to use towing trucks to clear union-blocked vehicles, prompting NUPENG to strengthen its blockade at the refinery gates.
Roots of the Dispute
The conflict originated when NUPENG accused the refinery of preventing drivers of its 4,000 compressed natural gas (CNG) trucks from joining unions, a move the union called a violation of the 1999 Constitution and international labor conventions. The refinery’s CNG truck deployment, delayed from August due to logistical issues in China, is set to begin before year-end. NUPENG claimed that the refinery’s management and MRS, owned by Dantata, forced drivers to sign agreements renouncing union affiliation.
This led to a nationwide strike on September 8, halting operations at depots and filling stations. Government intervention resulted in the MoU, which temporarily halted the strike.
Fuel Marketers and NLC Respond
The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) urged all parties to honor the MoU to avoid further disruptions. PETROAN President Billy Gillis-Harry called attempts to violate the agreement “not in good taste” and thanked President Bola Tinubu for intervening to prevent fuel scarcity.
The NLC labeled the refinery’s actions a “gross violation” of the MoU. Acting General Secretary Benson Upah noted that any response would depend on the Congress’s leadership, while an anonymous NLC executive accused the refinery of disregarding Nigerian institutions, citing claims that the refinery was “not in Nigeria” despite receiving tax waivers and foreign exchange support. The official called this stance “treasonous,” questioning the refinery’s accountability.
Government’s Position
The Ministry of Labour stated it had not received a formal complaint from NUPENG. Amos Falonipe, Director of Trade Unions, said the ministry would investigate any reported breaches. Critics argue the government’s failure to enforce agreements it facilitated undermines industrial peace and state authority.
Dangote Refinery’s Response
On September 11, 2025, Dangote Refinery rejected NUPENG’s allegations as “wholly inaccurate,” affirming its commitment to labor rights and denying any coercion of drivers. The refinery claimed its CNG truck initiative would create over 60,000 jobs with above-standard benefits, including pensions and medical cover. It also dismissed accusations of monopolistic practices, noting that competitors like BUA and Waltersmith are building refineries, and highlighted a 30% reduction in diesel prices due to its operations.
The refinery accused NUPENG of using “economic sabotage” and “blackmail” under the guise of labor activism, asserting it maintains cordial relations with unions by providing office space and allowing dues collection.
Looming Crisis
NUPENG warned it could resume industrial action by September 15 if the refinery does not comply with the MoU, potentially disrupting fuel distribution and causing scarcity and price hikes. Analysts view the dispute as a critical test of Nigeria’s labor laws and the government’s authority over powerful private entities.
For Nigerians, the standoff raises fears of renewed fuel shortages, highlighting the broader implications of this clash between a major union and one of Africa’s largest refineries.
