Tensions are escalating in Nigeria’s downstream oil sector as the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has issued a stern warning to halt fuel loading operations nationwide. The threat follows a growing rift between the union’s Petroleum Tanker Drivers (PTD) branch and the management of the Dangote Refinery over plans to bypass unionised drivers in its fuel distribution strategy.
At the heart of the dispute is the refinery’s decision to import 4,000 compressed natural gas (CNG)-powered trucks for direct fuel delivery to retailers, a move NUPENG says would sideline thousands of existing tanker drivers and strip them of their rights and livelihoods.
Though the CNG trucking scheme was scheduled to begin on August 15, delays linked to logistics issues in China have pushed back its launch. However, a spokesperson for the refinery confirmed to journalists that operations will commence once “a critical mass” of the trucks arrive in Nigeria.
Union Alleges Anti-Labour Agenda
In a statement released Friday and signed by NUPENG President Williams Akporeha and General Secretary Afolabi Olawale, the union accused Dangote Refinery of engaging in anti-worker policies that undermine labour rights. The statement expressed outrage at reports that the refinery intends to recruit new drivers for the imported trucks, and that those drivers would be barred from joining any trade union.
“This is a direct violation of the right to free association enshrined in the 1999 Constitution and international labour conventions which Nigeria is bound by,” the statement read.
NUPENG said it had made repeated efforts in collaboration with the Nigerian Association of Road Transport Owners (NARTO) to convince refinery founder Aliko Dangote to reconsider. But those appeals, the union claims, were ignored.
MRS Begins Recruitment, Union Cries Foul
Adding fuel to the fire, the union alleges that MRS Oil, reportedly linked to Dangote’s cousin Sayyu Ali Dantata, has already commenced recruitment of drivers for the incoming trucks. According to NUPENG, these new hires are being forced to sign agreements not to join any union affiliated with the oil and gas industry.
NUPENG described the move as “unconscionable,” and accused both Dangote and Dantata of attempting to monopolise fuel distribution, suppress union activity, and sideline long-standing labour structures in the sector.
Strike Threat Looms
The union has now issued a clear ultimatum: if the situation remains unresolved, members of the Petroleum Tanker Drivers Branch will begin to withdraw from loading operations starting Monday, September 8, 2025. The statement warns that affected drivers may have to seek alternative means of livelihood, given the looming threat of displacement.
“We appeal to the Nigerian public to understand that this struggle is about preserving the dignity of labour,” the union said. “We stood with the Dangote Refinery during its construction in good faith. That faith has now been betrayed.”
The union also called on regulatory agencies, the Nigerian Labour Congress (NLC), the Trade Union Congress (TUC), and global labour organisations to prepare for possible industrial action in solidarity with their cause.
The standoff comes at a pivotal time for Nigeria’s oil industry. The $20 billion Dangote Refinery, commissioned in May 2023, has been hailed as a potential game changer for Nigeria’s energy independence, boasting a processing capacity of 650,000 barrels per day.
But the refinery’s latest move toward a self-distribution model using non-unionised, CNG-powered trucks is already stirring controversy, with stakeholders warning that if the dispute is not urgently resolved, the country may face serious disruptions in fuel supply.
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