NUPENG Vs Dangote Refinery: Brewing Labour Dispute Over CNG Truck Distribution Scheme

Nigeria’s downstream oil and gas sector is once again at the brink of disruption as tensions escalate between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the management of the Dangote Refinery. The source of contention lies in Dangote’s plan to import and operate 4,000 compressed natural gas (CNG)-powered trucks for direct distribution of petroleum products nationwide.

While the initiative has been hailed as a step towards efficiency and modernization, it has raised alarm within NUPENG, particularly among its Petroleum Tanker Drivers Branch, who fear being sidelined. According to NUPENG, Dangote intends to recruit new drivers for these trucks but will not permit them to join any union. For the union, this is more than a labour dispute—it is an affront to the constitutional right of association and a breach of international labour standards to which Nigeria is a signatory.

In a strongly worded statement signed by its President, Williams Akporeha, and General Secretary, Afolabi Olawale, NUPENG condemned what it described as “anti-labour practices inimical to the survival and means of livelihoods” of its members. The union recounted how, despite multiple meetings with Dangote and his cousin, Sayyu Ali Dantata of MRS, to revisit the decision, their appeals were ignored. Instead, MRS reportedly began recruiting drivers for the new trucks, allegedly forcing them to sign undertakings not to belong to any union.

For NUPENG, this is nothing short of a betrayal. The union recalled how it stood by the Dangote Refinery during its construction and commissioning, believing it would create jobs and expand opportunities for Nigerian workers. Instead, it now accuses Dangote of scheming to monopolise fuel distribution, crush competition, and undermine workers’ rights, ultimately threatening the livelihoods of thousands of tanker drivers and their families.

The union’s warning is clear: unless the issue is resolved, it will direct its members to down tools and halt fuel loading operations across the country beginning September 8, 2025. Such a move would almost certainly trigger fuel scarcity nationwide, compounding the already fragile state of fuel supply in Nigeria.

Beyond petrol and diesel supply, a strike of this magnitude may also spill over into the Liquefied Petroleum Gas (LPG) market. Tanker drivers play a critical role in LPG transportation from depots to retailers nationwide, and any coordinated withdrawal of services could create an acute shortage. With households and businesses already grappling with high LPG prices, disruptions in supply would worsen inflationary pressures, push more families back to firewood and charcoal, and undermine Nigeria’s clean cooking transition efforts.

This dispute comes at a crucial moment. The $20 billion Dangote Refinery, with a capacity of 650,000 barrels per day, was envisioned as the game changer for Nigeria’s energy security, reducing reliance on imported refined products and stabilising local supply. However, its new fuel distribution model, involving thousands of CNG-powered trucks, has set it on a collision course with organised labour.

At the heart of the conflict are deeper questions about labour rights, corporate power, and economic equity. While Dangote’s plan reflects a push for efficiency and innovation, it also risks marginalising existing tanker drivers, many of whom have spent decades in the industry. For NUPENG, the fear is not only about job losses but also about setting a dangerous precedent where powerful corporations can erode workers’ rights under the guise of modernisation.

The stakes are high. A prolonged standoff could disrupt petroleum product supply chains, leading to queues at filling stations, soaring black-market prices, LPG shortages, and further hardship for ordinary Nigerians. More importantly, it could widen the gulf between labour and private sector investors in Nigeria’s energy industry at a time when collaboration is most needed to navigate subsidy removal, high fuel costs, and energy transition goals.

For now, all eyes are on the federal government and regulators to intervene before the situation spirals out of control. Without urgent mediation, the tension between NUPENG and Dangote Refinery could transform into a full-blown industrial crisis, shaking the very foundation of Nigeria’s fuel and gas distribution system.

• Lpg
• nupeng
• dangote
• cng
• cooking gas
• strike
• nigeria
• lpg inn nigeria

Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.