The fragile truce between the Nigerian Union of Petroleum and Natural Gas Workers 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 labour agreements.
The confrontation follows allegations by NUPENG that the Dangote Group reneged on a Memorandum of Understanding signed earlier this week, under which the refinery agreed to allow tanker drivers and other workers to freely unionise.
On Thursday, NUPENG’s National President, Williams Akporeha, accused Sayyu Aliu Dantata, a cousin of Aliko Dangote and key player in the refinery’s trucking operations, of defying the resolution reached on September 9 at the Department of State Services headquarters in Abuja.
The meeting, mediated by the Minister of Labour and Employment, Muhammadu Dingyadi, affirmed the rights of Petroleum Tanker Drivers under NUPENG to unionise. Representatives of the Nigeria Labour Congress, Trade Union Congress, DSS, and other agencies witnessed the signing of the MoU.
But Akporeha alleged that within 48 hours, Dantata ordered drivers to strip NUPENG stickers from their vehicles and forcefully enter the refinery in violation of union loading procedures.
“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 condemned what it described as Dantata’s “impunity” and warned the Federal Government not to allow security agencies funded by taxpayers to be used 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 placed members on “red alert” for the possible resumption of a nationwide strike, suspended earlier in the week when the MoU was signed. The union also called on the NLC, TUC, civil society organisations, and international labour allies to rise in solidarity.
On Thursday evening, NUPENG’s General Secretary, Afolabi Olawale, alleged that the Dangote management was planning to use towing trucks to remove vehicles used by the union to block non-compliant trucks. In response, NUPENG reportedly reinforced its blockade at the refinery gates.
The dispute
The row began when NUPENG accused the refinery of attempting to bar drivers of its 4,000 compressed natural gas trucks from joining any union, describing the move as an affront to freedom of association guaranteed by the 1999 Constitution and international labour conventions.
The refinery’s scheme to deploy CNG trucks for fuel distribution, earlier scheduled for August, was delayed due to logistics issues in China but is expected to commence before year-end. NUPENG alleged that the refinery’s management and MRS, owned by Dantata, compelled drivers to sign undertakings not to join oil and gas unions.
The situation escalated into a strike on September 8, shutting down depots and filling stations across the country. But after government intervention, both sides signed the MoU, prompting NUPENG to suspend the strike.
Marketers react
Fuel marketers, under the Petroleum Products Retail Outlet Owners Association of Nigeria, 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 expresses gratitude to the government and President Bola Tinubu for the swift intervention to save our nation from imminent scarcity,” he said.
Also, the Nigeria Labour Congress said Dangote refinery’s actions amounted to a “gross violation” of the agreement. NLC’s acting General Secretary Benson Upah told The PUNCH:
“We usually take 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.
FG’s dilemma
The Ministry of Labour confirmed that it had not received a formal complaint. The Director of Trade Unions at the ministry, Amos Falonipe, said, “We haven’t heard anything from NUPENG, and we also haven’t seen any report indicating that Dangote is reneging. If there are any, we would invite them to find out what happened and take appropriate action.”
The government has been criticised for failing to enforce agreements in which its officials acted as guarantors. Analysts warn that if Dangote can openly defy a government-brokered deal, industrial peace and state authority could be undermined.
Dangote refinery responds
In a detailed rejoinder dated September 11, 2025, the management of Dangote Petroleum Refinery dismissed NUPENG’s allegations as “wholly inaccurate” and reaffirmed its commitment to labour rights and national development. The refinery said trade union membership is a voluntary right and denied compelling drivers to renounce affiliation.
“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 insisted its CNG truck initiative will create more than 60,000 direct jobs with pay and benefits well above national standards, including pensions, insurance, housing loans, and medical cover. “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 rejected accusations of monopolistic practices, noting that over 30 refinery licences had been issued to other investors, with competitors like BUA and Waltersmith building plants. “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 per cent.”
The company said it had no plans to raise fuel prices, stressing its investments had stabilised domestic supply, curbed smuggling, and reduced arbitrary shortages. The refinery claimed it maintains cordial ties with unions, providing office space and allowing dues collection. It accused NUPENG of resorting to “economic sabotage, coercion, or blackmail under the guise of labour activism.”
As of Thursday, NUPENG warned that it might resume industrial action on September 15 if the refinery fails to comply with the MoU. Such action could cripple fuel distribution nationwide, leading to scarcity and price hikes.
Observers say the dispute now represents more than a tussle between a union and an employer; it is a test of Nigeria’s labour laws, industrial governance, and the Federal Government’s authority over powerful private conglomerates.
For ordinary Nigerians, however, the immediate concern remains the same: whether the face-off between Dangote Refinery and oil workers will once again trigger the long-dreaded fuel scarcity.
(Source: Punch except the headline)
