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The fragile truce between the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the $20 billion Dangote Petroleum Refinery has collapsed, sparking a fierce labour dispute that could threaten fuel supply stability across the country.
The clash follows allegations by NUPENG that the Dangote Group reneged on a Memorandum of Understanding (MoU) 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 Africa’s richest man Aliko Dangote and a key figure in the refinery’s trucking operations, of violating the agreement reached on September 9 at the headquarters of the Department of State Services (DSS) in Abuja.
The meeting, which was 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 (NLC), Trade Union Congress (TUC), DSS, and other agencies also witnessed the signing of the MoU.
But Akporeha alleged that within 48 hours of the agreement, Dantata ordered drivers to remove NUPENG stickers from their vehicles and forced trucks to 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 called “impunity” and warned the Federal Government against allowing security agencies to be used against workers. NUPENG placed its members on “red alert” for a possible nationwide strike, suspended earlier in the week when the MoU was signed. It also called on the NLC, TUC, civil society groups, and international labour allies to rise in solidarity.
On Thursday evening, NUPENG’s General Secretary, Afolabi Olawale, alleged that Dangote management was planning to use towing trucks to remove vehicles used by the union to block non-compliant trucks. In response, union members reportedly reinforced their blockade at the refinery gates.
The row started when NUPENG accused the refinery of trying to stop drivers of its 4,000 compressed natural gas (CNG) trucks from joining any union. The union described the move as a violation of the 1999 Constitution and international labour conventions that protect freedom of association.
The refinery’s CNG truck project, earlier scheduled for August but delayed due to logistics challenges in China, is expected to commence before year-end. NUPENG alleged that the refinery’s management and MRS Oil, owned by Dantata, had compelled drivers to sign undertakings not to join oil and gas unions.
This triggered a strike on September 8 that disrupted depot operations and filling stations across Nigeria. But government intervention led to the signing of the MoU, prompting NUPENG to suspend its strike action.
Fuel marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) urged all parties to respect the truce to avoid another round of industrial action.
PETROAN’s President, Billy Gillis-Harry, said, “All parties should adhere to the terms and spirit of the MoU signed. Attempts to renege on the agreement are not in good taste.” He also thanked President Bola Tinubu’s administration for intervening to prevent fuel scarcity.
The NLC also condemned the refinery’s actions, describing them as a “gross violation” of the agreement. NLC’s acting General Secretary, Benson Upah, said the labour body will not hesitate to take further action if the situation continues. Another NLC executive accused the refinery of treating Nigerian institutions with contempt, even suggesting that Dangote officials once argued that the refinery was “not in Nigeria” despite benefiting 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 rejoinder dated September 11, the Dangote Refinery dismissed NUPENG’s claims as “wholly inaccurate.” The management reaffirmed its commitment to labour rights, insisting that union membership is voluntary and no worker was compelled to renounce affiliation.
It added that its CNG truck initiative will create more than 60,000 direct jobs with competitive pay and benefits such as pensions, insurance, housing loans, and medical cover.
The refinery also denied claims of monopolistic practices, noting that more than 30 refinery licences had been issued to other investors, with companies like BUA and Waltersmith already building plants. It further stressed that its operations had reduced the pump price of diesel by over 30% in the past year and helped stabilise domestic fuel supply.
The Ministry of Labour said it has not received any formal complaint from either side. Amos Falonipe, Director of Trade Unions at the ministry, explained: “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.”
Analysts have warned that the standoff is more than just a union-employer clash. They say it is a test of Nigeria’s labour laws, industrial peace, and the Federal Government’s ability to enforce agreements it helped broker.
As of Thursday, NUPENG warned that it might resume its suspended strike on September 15 if the refinery fails to honour the MoU. Such a move could cripple fuel distribution nationwide, triggering fresh scarcity and price hikes for consumers.
For many Nigerians, the immediate worry is simple: whether the escalating battle between Dangote Refinery and oil workers will once again lead to fuel scarcity across the country.
