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Dangote vs Unions: When Business Meets Blackmail

by Leadership News
7 hours ago
in News
Dangote
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Africa’s richest man, Aliko Dangote, is not a happy man at the moment, and the reasons are not far-fetched. I don’t think Dangote has spoken to the press and granted interviews the way he did in the last year. In fact, he has granted more interviews and press conferences in the last year than in the previous five years combined.

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Last year, his tiff with the Nigerian National Petroleum Corporation (NNPC ) was well documented. Now he’s facing a new battle – this time with labour unions who are threatening to shut down his $20 billion refinery if he doesn’t allow workers to join their unions.

The industrial dispute between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Dangote Refinery has taken a new turn as the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has declared full solidarity with NUPENG and threatened to join in shutting down the refinery operations.

My reaction to this development? This is nothing but organised extortion disguised as workers’ rights advocacy.

The question I ask is why has it become mandatory to join a union? I also heard stories of them blocking Dangote trucks from moving. That’s an act of sabotage if you ask me.

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When did unions acquire the right to force people into membership and hold businesses hostage?

These unions claim they’re fighting for workers’ rights, but what they’re really doing is trying to muscle their way into a successful business to extract rents. They see Dangote’s success and want their piece of the pie, whether the workers actually need or want their representation.

Thankfully, the National Industrial Court in Abuja has granted an interim injunction restraining NUPENG and the Direct Trucking Company Drivers Association from embarking on industrial action or compelling other truck drivers to join. Justice E.D. Subilim also restrained the unions from blocking Nigerian roads or shutting down operations of Dangote Refinery and other companies.

This is the right decision. No union should have the power to force membership or shut down critical national infrastructure because its demands aren’t met. That’s not collective bargaining; that’s economic sabotage.

But Dangote’s problems go beyond union troubles. He has accused powerful ‘oil mafias’ in Nigeria’s oil and gas sector of working relentlessly to destroy his refinery, warning that the same forces which ruined Nigeria’s textile industry decades ago are now targeting his refinery.

Speaking at the refinery’s first anniversary of petrol production, Dangote explained how international traders and local marketers are trying to dump cheap, subsidised products in Nigeria to weaken local production – the same strategy that collapsed textile and refinery industries in other African countries.

“The same way they killed other sectors, they now want to use it to kill us,” he warned. This is a serious allegation that deserves investigation.

What Dangote is describing is economic warfare – the deliberate destruction of local industries through dumping and unfair competition. We’ve seen this playbook before in textiles, pharmaceuticals, and other sectors.

Foreign competitors flood the market with cheap, often subsidised products to kill local production, then raise prices once local competitors are eliminated.

Despite these challenges, Dangote’s achievements are undeniable. Between June and September 2025, the refinery exported more than 1.6 billion liters of petrol, proving it can supply Nigeria and still earn foreign exchange. The refinery has ended Nigeria’s long history of fuel queues and pushed petrol prices down from nearly ₦1,100 per liter to about ₦841 in some parts of the country.

“We’ve been battling fuel queues for 50 years. If today we can eradicate them, that is something we should be celebrating,” Dangote said. He’s absolutely right.

But instead of celebrating this achievement, some people are more interested in finding ways to exploit or destroy it. The union threats are particularly troubling because they come at a time when the refinery is already battling market manipulation from international players.

Let’s be clear about what’s happening here. Dangote has invested $20 billion of his own money to build infrastructure that benefits all Nigerians. He’s creating jobs, earning foreign exchange, and ending decades of fuel scarcity. Yet instead of support, he’s facing coordinated attacks from multiple directions.

The unions claim they’re fighting for workers’ rights, but forced membership is not a right – it’s coercion. Workers should have the freedom to choose whether or not to join unions. Making union membership mandatory is as oppressive as preventing workers from joining unions.

Come to think of it, what exactly are these unions offering that justifies forcing membership? If they provide genuine value, workers will join voluntarily. The fact that they need to use threats and coercion suggests their services aren’t as valuable as they claim.

The timing of these union threats is also suspicious. The refinery has been operating successfully, workers are getting paid, and there don’t appear to be major labor disputes. So why the sudden urgency to force unionisation now? It smells like opportunism rather than genuine concern for workers.

This is typical of how we treat success in Nigeria. Instead of celebrating and protecting businesses that are creating value, we look for ways to exploit them. Everyone wants their share of the success without contributing to it.

The government needs to take a strong stand on this issue. Nigeria cannot afford to lose this refinery to union blackmail or market manipulation. Too much is at stake – energy security, foreign exchange earnings, job creation, and industrial development.

The court injunction is a good start, but more needs to be done. The government should investigate allegations of market manipulation and dumping by international players. They should also review labour laws to prevent unions from using coercive tactics against businesses.

Workers’ rights are important, but so are investors’ rights. You cannot build a modern economy by allowing unions to hold successful businesses hostage. That’s a recipe for discouraging investment and driving businesses away.

Dangote also revealed plans to introduce 4,000 CNG-powered trucks, promising further price reductions and better nationwide distribution. This will create at least 24,000 direct jobs, with each truck creating six jobs. These are the kind of initiatives we should be supporting, not sabotaging.

“Nobody will lose a job. These trucks will be driven by people, not robots. Drivers will also earn good pay, health insurance, life insurance, and pensions,” Dangote stated. This is what real job creation looks like.

Instead of threatening to shut down operations, unions should be working with Dangote to ensure these new jobs go to their members. That’s constructive engagement, not the destructive approach they’re currently pursuing.

The lesson here is broader than just Dangote’s situation. Nigeria needs to decide whether it wants to be a country that attracts and protects investment or one that allows rent-seekers to destroy successful businesses.

We complain about a lack of investment, unemployment, and poor infrastructure, yet when someone invests $20 billion to address these problems, we find ways to make their life difficult. This is self-defeating behavior that keeps us poor and underdeveloped.

Other African countries are watching how we treat Dangote. If we allow unions and market manipulators to destroy his refinery, what message does that send to potential investors?

Why would anyone want to invest in a country that doesn’t protect successful businesses?

The government must choose sides in this battle. They can either stand with job creators and value generators like Dangote, or they can allow rent-seekers and saboteurs to destroy our progress. The choice is clear, and so are the consequences of choosing wrongly.

Dangote’s refinery is a national asset that must be protected from all forms of economic sabotage, whether from unions, market manipulators, or other rent-seekers. Nigeria’s economic future may well depend on making the right choice.

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