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Dangote Refinery, Oil Workers’ Dispute Escalates

by Leadership News
5 hours ago
in Business
Reading Time: 4 mins read
The Dangote Refinery is owned by Dangote, Africa's wealthiest man

The Dangote Refinery is owned by Dangote, Africa's wealthiest man

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However, Dangote Petroleum Refinery has dismissed the allegations made by the NUPENG, insisting that, claims of anti-labour practices, monopolistic behaviour, and planned fuel price hikes are entirely unfounded.

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Meanwhile, interventions are ongoing to resolve the industrial disharmony as stakeholders wade into the war between NUPENG and Dangote Refinery.

In the latest statement sent to LEADERSHIP by NUPENG General Secretary, Comrade Afolabi Olawale disclosed that, “We just finished the meeting at the DSS with the Minister of Labour and Employment (State) in attendance with the Deputy Director General of DSS and other operatives of DSS, the representatives of NMDPRA, Dangote, TUC, NLC and NUPENG.

The resolution of the meeting is to maintain the status quo preceding the resolution of 9/9/2025.
MRS Energy Ltd was asked to go and put back the NUPENG Stickers he instructed his drivers to removed from his trucks on Wednesday 10/9/2025”.

A statement signed by the National President, NUPENG, Comrade Williams Akporeha, and it’s general secretary, Comrade Afolabi Olawale, accused Dangote of Petroleum Refinery of mischievous attempt to create an illusion and misinformation of division within the union, saying, this is not only malicious but unfounded fabricated lie from the pit of hell.

“If it was true that there was a faction in our Union, DANGOTE should have made this “faction of Tanker Drivers” to call off or stop the nationwide industrial action of Petroleum Tanker Drivers declared and directed by the Nigeria Union of Petroleum and Natural Gas Workers, which was very effective, peaceful and one hundred percent successful.

“Dangote Refinery also falsely denies it does not stop its truck drivers from belonging to NUPENG.

However, the Memorandum of Understanding (MoU) signed on 9th September 2025 is predicated upon a recognition of the company’s resistance to unionisation.

The birth of the MoU is therefore a confirmation of initial resistance to allowing freedom of Association,” the group stated.

In spite of the MoU of 9th September 2025, on the 11th of September 2025, the association alleged that Dangote Refinery directed that the stickers of NUPENG be removed from all trucks to be replaced by the sticker of the association, the Direct Trucking Company Drivers Association (DTCDA) formed by the management.

“The Dangote Petroleum Refinery has been sponsoring division within the Petroleum Tanker Drivers (PTD) Branch of our Union since 2023. The company’s agents within our union have been losing elections. It is those who have been losing elections in the PTD Branch of NUPENG that are being recruited to form the ill-fated Direct Trucking Company Drivers Association (DTCDA). The company’s agents who have been losing elections in the PTD Branch of NUPENG are among those granting media interviews in support of the company.,” NUPENG stated.

Saying that Nigerians should not be deceived by the offer of free nationwide delivery of petroleum products to dispensing stations, the group said, its a strategy meant to ensure that other employers of Petroleum Truck Drivers are unable to employ drivers so that only those employed by the company who are forced to join DTCDA will remain in employment.

“It is also noteworthy to state here that, aside from the Petroleum Tanker Drivers, there are other operational and administrative workers of Dangote Refinery and Petrochemical Company which the management has been preventing and obstructing their rights of belonging to the Union. It is on record that DANGOTE Group does not allow unionization of workers in all its cement and sugar plants across Nigeria,” it stressed.

Refuting the allegation, Dangote said, the union’s statement, released on September 5, 2025, and subsequent media appearances, alleged that Dangote Group was undermining union activities and threatening workers’ welfare through its new deployment of compressed natural gas (CNG) powered trucks.

Dangote Refinery, in the statement, reiterated its full support for constitutionally protected labour rights, stating that employees are free to affiliate with any recognised trade union.

The statement said, assertions that drivers are compelled to waive union rights are categorically false, adding that the dispute involves NUPENG’s Petrol Tanker Drivers (PTD) unit and does not implicate the refinery in any breach of rights.

Central to NUPENG’s allegations is the roll-out of over 4,000 CNG-powered bulk trucks, which the union claims could displace existing jobs. Dangote Group firmly refuted this, describing the initiative as a cornerstone of Nigeria’s energy transition strategy.

The deployment of CNG-powered trucks is a strategic initiative designed to support national energy transition goals, not to displace existing jobs, the company stated.

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“Each truck will be operated by a six-person team, with drivers receiving salaries significantly above the national minimum wage, plus medical cover, pensions, housing allowances, and long-term access to housing loans. The company aims to have 10,000 such trucks in operation by year-end, potentially creating over 60,000 direct jobs,” it noted.

Responding to accusations of monopolistic behaviour, Dangote Refinery emphasised its compliance with Nigeria’s deregulated oil sector under the supervision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The company highlighted that over 30 refinery licences have been issued to private players, with active developments by BUA, Aradel, Walter Smith, and the Edo
Refinery, stating that “while we are major industry player, our presence has revitalised the downstream sector, reopened previously dormant petrol stations and restored investor confidence.”

The statement also drew parallels with the company’s influence in the cement industry, noting that Dangote’s entry helped eliminate Nigeria’s reliance on imports and spurred the rise of other local producers.

Dangote Refinery denied any plans to increase fuel prices, saying “on the contrary, the company claims its operations have stabilised fuel availability and driven down costs.

“Diesel prices, for instance, have dropped by over 30 per cent in the past year, and petrol prices in Nigeria are now reportedly lower than in oil-rich nations like Saudi Arabia and 40 per cent cheaper than neighbouring West African countries.”

The company also pointed to its N720 billion investment in CNG infrastructure as evidence of its commitment to reducing logistics costs and improving nationwide fuel distribution. Dangote stated it maintains a cordial and cooperative relationship with all recognised trade unions, including NUPENG.

It rejected accusations of walking out on recent conciliation efforts, stating that the union had not formally communicated any grievances before going public.
Since its commissioning just over a year ago, Dangote Refinery has transformed Nigeria into a net exporter of refined fuels, supplying markets as far as the United States. Its production of key by-products such as polypropylene, LPG, and naphtha is said to be catalyse growth in manufacturing, aviation, and agro-processing sectors.

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Tags: Dangote groupDangote RefineryNigeria Union of Petroleum and Natural Gas Workers (NUPENG)Nigerian Midstream and Downstream Petroleum Resources Authority (NMDPRA)
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