The truce between the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the $20bn Dangote Petroleum Refinery has collapsed, igniting a fierce industrial dispute that threatens fuel supply stability and tests the Federal Government’s ability to enforce labor agreements.
The encounter follows NUPENG’s charges that the Dangote Group violated a Memorandum of Understanding inked earlier this week, in which the refinery committed to allow tanker drivers and other workers to freely unionize.
On Thursday, NUPENG’s National President, Williams Akporeha, accused Sayyu Aliu Dantata, Aliko Dangote’s cousin and a key actor in the refinery’s transportation operations, of violating the resolution made on September 9 at the Department of State Services headquarters in Abuja.
The meeting, mediated by Minister of Labour and Employment Muhammadu Dingyadi, confirmed the authority of Petroleum Tanker Drivers under NUPENG to form unions.
The signing of the MoU was observed by representatives from the Nigeria Labour Congress, the Trade Union Congress, the DSS, and other agencies.
However, Akporeha said that within 48 hours, Dantata forced drivers to remove NUPENG stickers from their cars and forcefully enter the refinery in violation of union loading regulations.
“Alhaji Sayyu Aliu Dantata flew over them several times with his helicopter and then called the navy of the Federal Republic to come over ostensibly to crush the union officials. Our members are waiting for him and his agents to run them over,” Akporeha said in a statement.
The union slammed Dantata’s “impunity” and cautioned the federal government not to utilize taxpayer-funded security forces against workers.
“His wealth cannot make him above the law. Security agents should not allow an individual to ride roughshod even while not observing terms of agreement reached in meetings in which they themselves facilitated,” Akporeha added.
NUPENG’s leadership has placed members on “red alert” for the likely resumption of a statewide strike that was paused earlier this week when the MoU was signed. The union also urged the NLC, TUC, civil society organizations, and international labor allies to stand in support.
On Thursday evening, NUPENG’s General Secretary, Afolabi Olawale, said that Dangote management intended to employ tow trucks to remove cars used by the union to block non-compliant trucks. In response, NUPENG reportedly strengthened its blockage at the refinery’s gates.
The dispute began when NUPENG accused the refinery of attempting to prevent drivers of its 4,000 compressed natural gas vehicles from joining any union, claiming that the move violated the 1999 Constitution and international labor conventions guaranteeing freedom of association.
The refinery’s plan to deploy CNG trucks for gasoline distribution, which was originally scheduled for August, has been delayed due to logistics challenges in China, but it is likely to begin before the end of the year. NUPENG said that the refinery’s management and MRS, owned by Dantata, coerced drivers into signing agreements not to join oil and gas unions.
On September 8, the situation erupted into a strike, which shut down depots and filling stations around the country. However, following government intervention, both parties signed the MoU, causing NUPENG to cease the strike.
Fuel marketers, under the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), urged all parties to respect the truce to avoid an industrial action that may arise due to such disagreements.
PETROAN’s president, Billy Gillis-Harry, said attempts to renege on the agreement were “not in good taste.”
“All parties should adhere to the terms and spirit of the MoU signed.
PETROAN is grateful to the government and President Bola Tinubu for their prompt involvement to preserve our country from impending scarcity,” he stated.
Furthermore, the Nigeria Labour Congress stated that Dangote refinery’s conduct constituted a “gross violation” of the agreement. NLC’s acting General Secretary Benson Upah stated.
“We usually make decisions when agreements are violated. But note, the decision to take action rests with the appropriate organs of the Congress.” An NLC executive, speaking anonymously, accused the refinery of treating Nigerian institutions with contempt, claiming its representatives once argued that the refinery was “not in Nigeria” despite benefitting from tax waivers, concessions, and foreign exchange support.
“For Dangote to turn around and violate it is a slap on the nation. Where then is the refinery located—what we might as well call the ‘Dangote Republic’? That is treasonous,” the official said.
In a thorough rebuttal dated September 11, 2025, Dangote Petroleum Refinery’s management refuted NUPENG’s claims as “wholly inaccurate” and reaffirmed its commitment to labor rights and national development.
The refinery stated that trade union membership is a voluntary right and denied forcing drivers to renounce it.
“Assertions that drivers are compelled to waive union rights are categorically false. Allegations of union suppression are unfounded and appear to be part of a broader narrative aimed at discrediting private sector progress,” the statement read.
Dangote asserted that his CNG truck program will create over 60,000 direct jobs with salaries and benefits far exceeding national standards, including pensions, insurance, housing loans, and medical coverage.
“Far from threatening livelihoods, this initiative is expected to create over 60,000 direct jobs and many more indirectly. We launched about 4,000 CNG trucks and created jobs. Dangote did not take anybody’s job.”
The refinery denied allegations of monopolistic behavior, pointing out that over 30 refinery licenses had been awarded to other investors, with competitors such as BUA and Waltersmith developing units.
“Historically, Dangote Group’s investments have fostered healthy competition, as evidenced in the cement industry. Our crude oil refinery has brought down the AGO price in the last year by over 30 percent.”
The firm claimed it had no plans to raise fuel prices, emphasizing that its efforts had stabilized domestic supplies, reduced smuggling, and minimized arbitrary shortages. The refinery claimed to have friendly relations with unions, offering office space and facilitating dues collection. It accused NUPENG of using “economic sabotage, coercion, or blackmail under the guise of labor activism.”
As of Thursday, NUPENG had warned that if the refinery did not comply with the MoU, it would resume industrial action on September 15. Such action might disrupt nationwide fuel supplies, resulting in scarcity and price increases.
According to observers, the issue has evolved into more than just a conflict between a union and an employer; it is a test of Nigeria’s labor laws, industrial governance, and the Federal Government’s authority over large private companies.
For ordinary Nigerians, the immediate concern remains the same: whether the standoff between Dangote Refinery and oil workers would result in the long-feared fuel crisis.
