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Fuel Crisis Looms: Dangote Refinery and NUPENG Strike Talks Collapse Amidst Supply Fears

Published 1 day ago3 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Fuel Crisis Looms: Dangote Refinery and NUPENG Strike Talks Collapse Amidst Supply Fears

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has embarked on an industrial action against the Dangote Refinery, alleging anti-union practices. Despite the strike, a spokesman for the refinery, Anthony Chiejina, assured on Tuesday that the action would not lead to fuel shortages in the country, stating, “There is no fuel shortage, everything is going on.” This assurance comes as the refinery, Africa's largest with a capacity of 650,000 barrels per day, is reportedly hiring its own drivers to deliver gasoline to retailers.

The strike, which began on Monday, has garnered significant support from other labor organizations both within Nigeria, such as the Nigeria Labour Congress (NLC), and internationally, including global union IndustriALL and the International Lawyers Assisting Workers network. NUPENG's core allegation is that Dangote is hiring new drivers on the condition that they do not join the union, a claim vehemently disputed by the refinery's spokesman, Anthony Chiejina, who labeled it “cheap blackmail.”

In an effort to resolve the standoff, the federal government, through the Ministry of Labour and Employment, convened an emergency meeting in Abuja on Monday. However, the negotiations ended in a stalemate as representatives from the Dangote Refinery reportedly walked out of the meeting. Muhammad Dingyadi, the Minister of Labour and Employment, who presided over the meeting, acknowledged the slow progress, stating, “We have not been able to reach a final agreement on this matter. Negotiations will continue.” He appealed for peace while discussions proceed, assuring Nigerians of the government's commitment to finding common ground.

Benson Upah, the Acting General Secretary of the NLC, accused the Dangote delegation of “deliberately sabotaging the process” by walking out on the minister and organized labor. He reiterated that the strike would continue but emphasized that the labor movement remains open to dialogue, provided the refinery is willing to engage genuinely. Williams Akporeha, NUPENG's president, echoed this sentiment, stating the union is still open to engagement and discussions are ongoing, but asserted that the strike continues due to what he described as a “dictator investor” attempting to suppress workers' rights and expand a monopoly.

The Dangote Refinery has significantly impacted Nigeria's oil sector since its opening last year. Historically, Nigeria, despite being a major oil producer, imported almost all its petrol due to years of neglect and mismanagement of government-owned refineries. The Dangote Refinery has driven down petrol prices for consumers and disrupted long-entrenched players in a sector previously marred by corruption. However, its emergence has also sparked concerns about monopoly fears, given its powerful position backed by Africa's richest man, Aliko Dangote.

Last month, the refinery planned to deploy a fleet of thousands of Compressed Natural Gas (CNG)-powered trucks for nationwide petrol distribution, an initiative now delayed by logistics issues. This plan had already caused ripples in a market dominated by over 20,000 diesel-powered tankers for decades. Akporeha further accused the refinery of seeking to enslave Nigerians and monopolize not just the system but also its workers, an assertion he firmly rejected as being against the interest of Nigerians.

As of Tuesday, the strike action continues, with NUPENG stating its workers would down tools and seek alternative employment. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also announced plans to suspend the lifting and dispensing of petroleum products for three days from September 9 in solidarity with NUPENG, underscoring the potential for broader disruptions if a resolution is not reached soon.

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