Nigeria Faces Looming Fuel Scarcity as Dangote Refinery, NUPENG Clash Deepens

Nigeria may begin to experience fuel scarcity from today (Monday) unless the Federal Government swiftly resolves the industrial face-off between the Petroleum Tanker Drivers (PTD) Branch of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Dangote Refinery.

The dispute erupted after Dangote Refinery announced plans to deploy 4,000 compressed natural gas (CNG)-powered trucks for direct distribution of petroleum products. NUPENG condemned the move, arguing it would bypass existing tanker drivers, threaten thousands of jobs, and undermine workers’ constitutional right to unionize.

On Sunday, Minister of Labour and Employment Muhammad Maigari Dingyadi confirmed that his ministry had invited all stakeholders to an emergency conciliation meeting in Abuja. Appealing for calm, he urged NUPENG to suspend its planned nationwide strike and called on the Nigeria Labour Congress (NLC) to withdraw its “red alert” issued to affiliate unions.

“I plead with the unions to give peace a chance. I assure them that this matter will be resolved amicably,” Dingyadi said in a statement signed by his spokesperson, Patience Onuobia.

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NUPENG’s Allegations Against Dangote

In a statement jointly signed by its president, Williams Akporeha, and general secretary, Afolabi Olawale, NUPENG accused Dangote Refinery of anti-labor practices. The union alleged that newly recruited drivers were compelled to sign undertakings barring them from joining trade unions, describing it as a violation of Nigeria’s Constitution and international labour conventions.

While acknowledging that it supported the refinery during its construction phase, the union expressed disappointment at what it described as Dangote’s attempt to monopolize distribution.

“We did not expect the company to monopolize distribution, crush competition, enslave the sector, and raise prices. We will resist moves that undermine our members’ livelihoods,” NUPENG declared.

Divisions Among Drivers

The proposed strike has exposed deep cracks within the trucking sector. The Direct Trucking Company Drivers Association (DTCDA), led by Barrister Enoch Kanawa, dissociated itself from NUPENG’s strike directive, insisting it had no affiliation with the union.

NUPENG, however, dismissed DTCDA as a creation of Dangote Refinery, designed to weaken collective labour power. The union stressed that the Petroleum Tanker Drivers (PTD) Branch remained united and that Kanawa, being a lawyer and not a driver, could not claim to represent tanker drivers.

Further complicating the picture, four PTD zonal leaders—Tajudeen Abubakar (Kaduna Zone), Chief Blessing Dafinone (Warri Zone), Joseph Dagogo-Jack (Port Harcourt Zone), and Kolade Fadahunsi Ojelabi (Lagos Zone)—publicly rejected NUPENG’s strike call, describing it as “insensitive and unacceptable.”

Despite this, NUPENG’s national leadership has vowed not to back down, insisting that Dangote’s policies amount to “slavish conditions” for workers.

Support and Opposition

The looming strike has drawn mixed reactions from stakeholders. While some tanker drivers oppose the action, petroleum marketers and the Nigeria Labour Congress (NLC) have thrown their weight behind NUPENG.

Adding to the pressure, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) announced a three-day forewarning suspension of lifting and dispensing petroleum products starting Tuesday. PETROAN’s President, Dr. Billy Gillis-Harry, said the move was meant to promote healthy competition and prevent monopolistic control.

“PETROAN underscores its commitment to advancing the interests of Nigerian citizens in pricing stability and promoting a stable, productive industry,” Gillis-Harry said. He called on President Bola Tinubu and petroleum regulators to intervene urgently.

Dangote’s Distribution Plan

Dangote Refinery’s direct distribution scheme, originally scheduled to launch on August 15, faced delays due to logistics challenges in China and opposition from local stakeholders. However, industry sources confirm that some of the CNG-powered trucks are already in Nigeria, signaling that the plan remains on track.

The initiative, according to Dangote Group officials, is intended to modernize fuel distribution, reduce costs, and promote cleaner energy through CNG technology. Yet, unions see it as a threat to job security and collective bargaining rights in the sector.

Broader Implications

Observers warn that if the dispute is not resolved quickly, fuel scarcity could spread nationwide. With PETROAN’s involvement and NUPENG’s directive halting product lifting, filling stations may begin to shut down, worsening supply disruptions.

Industry analysts note that the clash highlights broader tensions around Dangote’s dominance in the downstream oil sector. While the refinery has been hailed as a game-changer for local refining capacity, critics argue that its control over both production and distribution risks creating a monopoly that could sideline smaller operators and erode labour protections.

Labour experts stress that the challenge lies in balancing investment promotion with the protection of workers’ rights. “Nigeria needs Dangote Refinery to succeed, but it must not come at the expense of union rights and job security,” one analyst noted.

FG Begs NUPENG to Shelve Strike

The federal government, aware of the dire consequences of a shutdown, has stepped up mediation efforts. Minister Dingyadi reiterated that his ministry was committed to resolving the matter harmoniously.

“I have invited all the parties for a conciliation meeting tomorrow, Monday, September 8, 2025. Since I have intervened, I plead with NUPENG to rescind their decision to shut down the petroleum sector. I also appeal to the NLC to withdraw the red alert,” Dingyadi said.

He assured Nigerians that the dispute would be resolved amicably to avoid any disruption in petroleum supply.

Union insiders hinted that the strike may be temporarily suspended pending the outcome of Monday’s talks. “In reverence to the intervention of the government, we are putting the strike on hold to listen to the government, with the hope that positive developments will come out,” a source revealed.

As Nigerians brace for possible shortages, today’s conciliation meeting in Abuja could determine whether the country faces yet another cycle of fuel scarcity. For government negotiators, the challenge is to strike a balance between enabling Dangote’s investments and safeguarding workers’ rights.

If the matter is resolved amicably, it may avert immediate disruption. But if talks collapse, the fallout could plunge the nation into a crippling fuel crisis, further straining an economy already weighed down by inflation and energy costs.