Africa’s richest man and President of the Dangote Group, Aliko Dangote, has accused the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) of imposing unauthorized charges of up to ₦50,000 on every truck loading fuel at the Dangote refinery, warning that these costs directly inflate pump prices and worsen the burden on Nigerian consumers.
The revelation has ignited what industry stakeholders are now calling the Dangote refinery fuel price controversy, raising questions about the legality of union-imposed levies and their implications for energy affordability in Africa’s largest economy.
Allegations of hidden levies fueling higher pump prices
Speaking at the weekend, Dangote stated that multiple charges are layered on trucks transporting petroleum products.
According to him, NUPENG allegedly collects between ₦48,000 and ₦50,000 per truck, with total charges rising to about ₦80,000 once other players add their own fees.
“By the time everybody collects their own, who pays for that cost? The consumer actually pays,” Dangote declared.
He described these charges as a form of rent-seeking that undermines efficiency and transparency within Nigeria’s oil and gas sector.
This development adds a new dimension to the Dangote refinery fuel price controversy, especially at a time when Nigerians are already grappling with soaring pump prices driven by foreign exchange pressures and logistics costs.
When contacted, NUPENG’s President, Williams Akporeha, did not directly deny the ₦50,000 allegation.
Instead, he quipped: “₦50k now? No more ₦1 per litre?” His cryptic response referenced earlier viral claims that the union had imposed a ₦1 per litre charge, which he previously dismissed as unfounded.
The union has also clashed with Dangote Group over the rights of truck drivers to unionize, leading to depot shutdowns and blockades of the refinery.
Though the Federal Government intervened with a memorandum of understanding and an industrial court barred further blockades, tensions remain unresolved.
Dangote explained that his experience as a fuel importer motivated him to avoid dependency on third-party transporters.
He recalled how private transporters once “held Dangote Group by the neck,” which led him to create an in-house fleet under his brother’s management.
Now, with the launch of 4,000 Compressed Natural Gas (CNG)-powered trucks, the company aims to maintain control over distribution and shield operations from disruptions.
“If there is no evacuation, there is nothing we can do,” he stressed, adding that no worker should be compelled to join any union against their will.
Experts weigh in on Dangote refinery fuel price controversy
Industry experts have expressed concern about the legality of NUPENG’s alleged role in fuel loading levies.
Professor Dayo Ayoade, an energy law specialist, remarked:
“The job of a union is to assist its members and protect their jobs, but it doesn’t have a right to tax or collect fees for fuel loading. Is NUPENG now a tax-collecting agency? That is the question.”
According to him, Dangote’s insistence on independence is a rational strategy to avoid such bottlenecks.
“If truck drivers are independent of the union, no single body can hold the country to ransom.
Competition should be encouraged, and unions should focus on making themselves attractive to workers instead of coercion,” he added.
Analysts note that the Dangote refinery fuel price controversy goes beyond a clash between one company and a union—it exposes the hidden costs embedded in Nigeria’s energy distribution system.
If confirmed, such levies function as informal taxes that drive up fuel prices, undermining government efforts to stabilize the market and encourage cleaner alternatives like CNG.
Already, the cost of petrol has climbed due to naira depreciation and high operational expenses.
The addition of unregulated charges at the refinery level threatens to worsen inflation and push businesses, particularly small enterprises, to the brink.
Stakeholders are now calling on the Federal Government to urgently investigate the allegations, provide clarity on whether NUPENG has overstepped its legal authority, and design a transparent regulatory framework for truck-loading charges.
Such action, they argue, is necessary to balance the constitutional right of workers to organize with the imperative of protecting millions of Nigerians from exploitative practices.
The Dangote refinery fuel price controversy comes at a critical time for Nigeria’s energy sector.
With the refinery positioned as a game-changer expected to reduce dependence on imported fuel, continued disputes risk undermining confidence in the country’s refining capacity.
Dangote’s investment in CNG trucks underscores the private sector’s willingness to drive innovation and efficiency.
However, experts warn that unchecked rent-seeking practices and recurring industrial disputes could derail these gains, ultimately leaving consumers to bear the heaviest costs.
For now, Nigerians are watching closely to see whether regulators will step in to address the Dangote refinery fuel price controversy—a dispute that highlights both the promise of local refining and the persistent structural challenges facing the nation’s oil and gas industry.
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