The fragile truce between the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the $20 billion Dangote Petroleum Refinery has collapsed, triggering a tense industrial showdown that threatens the stability of Nigeria’s fuel supply and tests the Federal Government’s capacity to enforce labour agreements.
The conflict stems from NUPENG’s allegations that the Dangote Group reneged on a Memorandum of Understanding (MoU) signed earlier this week, which was meant to safeguard tanker drivers’ rights to freely unionise.
The MoU, brokered at the Department of State Services (DSS) headquarters in Abuja, involved mediation by the Minister of Labour and Employment, Muhammadu Dingyadi, and was witnessed by representatives of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and other government agencies.
NUPENG’s National President, Williams Akporeha, accused Sayyu Aliu Dantata, a cousin of Dangote and key figure in the refinery’s trucking operations, of undermining the agreement reached on September 9.
According to Akporeha, within 48 hours of the MoU, Dantata allegedly ordered drivers to remove NUPENG stickers from their vehicles and bypass union-sanctioned loading procedures at the refinery gates.
“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 stated, describing the act as “impunity” and a violation of workers’ rights.
In response, NUPENG placed members on “red alert,” signaling a potential resumption of the nationwide strike suspended following the MoU.
The union also called on the NLC, TUC, civil society organisations, and international labour bodies to stand in solidarity against what it described as aggressive tactics by the refinery’s management.
The dispute first erupted when NUPENG accused Dangote Refinery of attempting to bar drivers of its 4,000 compressed natural gas (CNG) trucks from joining unions.
The union described the action as an affront to freedom of association guaranteed under the 1999 Constitution and international labour conventions.
The refinery’s CNG truck deployment, originally scheduled for August, was delayed due to logistics issues in China but is expected to commence before the end of 2025.
NUPENG alleged that drivers were compelled to sign undertakings not to affiliate with oil and gas unions—a claim the refinery has vehemently denied.
The tension escalated into a strike on September 8, temporarily shutting down depots and filling stations nationwide.
Government intervention led to the MoU signing, prompting the union to suspend its industrial action.
Fuel marketers, under the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), have urged both parties to respect the truce to prevent a repeat of nationwide fuel shortages.
PETROAN President, Billy Gillis-Harry, described attempts to renege on the agreement as “not in good taste” and praised the Federal Government and President Bola Tinubu for the swift intervention that helped avert an imminent crisis.
Meanwhile, the NLC condemned Dangote Refinery’s alleged actions as a “gross violation” of the MoU. Acting General Secretary Benson Upah warned that any breach could prompt the union congress to take decisive action.
An NLC executive, speaking anonymously, expressed concern over what he described as the refinery treating Nigerian institutions with contempt.
“For Dangote to turn around and violate a government-mediated agreement 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 added.
The Ministry of Labour and Employment confirmed it had not received a formal complaint from NUPENG regarding the alleged breach.
Director of Trade Unions, 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.”
Analysts have criticised the government for failing to enforce agreements in which its officials acted as guarantors.
Observers warn that if a private conglomerate can openly defy a government-brokered deal, industrial peace and state authority risk being undermined.
In a statement released on September 11, 2025, Dangote Petroleum Refinery dismissed NUPENG’s allegations as “wholly inaccurate,” asserting that trade union membership remains a voluntary right.
The refinery denied compelling drivers to renounce union 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.
The refinery highlighted that its CNG initiative will create more than 60,000 direct jobs with pay, pensions, insurance, and medical benefits above national standards.
It also stressed that the investment fosters healthy competition, citing competitors like BUA and Waltersmith, and has contributed to lowering Automotive Gas Oil prices by over 30% in the past year.
As of Thursday, NUPENG warned that it might resume industrial action on September 15 if the refinery fails to comply with the MoU.
Such a strike could cripple fuel distribution nationwide, triggering scarcity and price spikes.
Experts note that the dispute extends beyond union-management relations; it is a critical test of Nigeria’s labour laws, industrial governance, and the Federal Government’s authority over powerful private conglomerates.
For ordinary Nigerians, the immediate concern remains whether the clash between Dangote Refinery and oil workers will once again precipitate widespread fuel shortages.
The unfolding standoff underscores the delicate balance between corporate ambitions and workers’ rights in Nigeria’s oil and gas sector.
With the Federal Government caught between enforcing agreements and preventing industrial unrest, the coming days will determine not just the fate of tanker drivers’ unionisation but also the credibility of Nigeria’s labour and regulatory institutions.