The Dangote Refinery.

The Nigerian petroleum sector faces fresh turbulence as the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Dangote Petroleum Refinery lock horns over workers’ union rights.

At the heart of the dispute is the refinery’s decision to deploy 4,000 new Compressed Natural Gas (CNG) trucks for direct fuel distribution while allegedly discouraging drivers from joining unions. NUPENG, accusing Dangote of “flagrant violation of workers’ constitutional rights,” has threatened a nationwide strike beginning Monday, 8 September.

Dangote’s New Logistics Model

Launched in June, Dangote’s logistics plan involves 4,000 CNG-powered trucks, distribution hubs, and rural “booster stations.” It also offers a credit scheme, giving bulk buyers an extra 500,000 litres of fuel on two weeks’ credit with a bank guarantee.

A Split Union Front

While NUPENG is mobilising members, its Petroleum Tanker Drivers (PTD) branch has rejected the strike call, describing it as “insensitive and unacceptable.” Similarly, the Direct Trucking Company Drivers Association (DTCDA) distanced itself, calling the strike “a disservice to Nigerians.”

The Nigeria Labour Congress (NLC), however, has thrown its weight behind NUPENG. Its president, Joe Ajaero, accused Dangote of “exploiting workers and disregarding their constitutional rights,” urging President Bola Tinubu to intervene.

Legal and Economic Tensions

Nigeria’s Constitution and Labour Act guarantee workers the right to freely join or reject union membership. Labour experts argue Dangote’s alleged anti-union agreements violate the law, but also note that NUPENG cannot compel drivers into its ranks.

“The law provides enough room for both parties to resolve their differences through proper dispute mechanisms,” said analyst Yinka Ogunnubi, cautioning that bypassing legal processes risks escalation.

Economists warn that while Dangote’s system may stabilise supply, dollar-based fuel sales or monopoly pricing could worsen inflation. For Nigerians, the stakes are clear: a strike could trigger fuel queues and black markets, while unchecked dominance could squeeze out smaller players.

As the standoff deepens, experts say the government’s challenge lies in balancing workers’ rights, fair competition, and uninterrupted fuel supply.