Union members within Nigeria’s energy sector on Monday, led by Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), kick-started a nationwide strike.
The protest was brought on by what the union described as an anti-union policy within Dangote’s distribution plan.
The demonstrations threaten to cut off a significant supply of fuel across the country, as it continues to draw support from other union bodies such as the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN.
However, as seen in The Punch, a spokesman for the Dangote Refinery disclosed that Nigerians should be unconcerned with fuel shortages, as conversations with the refinery, union members, and the government are still ongoing.
“There is no fuel shortage, everything is going on,” a refinery spokesman, Anthony Chiejina, told AFP.
Cause of the dispute between Union members and the Dangote Refinery
In June 2025, the Dangote Refinery announced plans to initiate an in-house distribution plan involving the deployment of 4,000 CNG-powered vehicles.
The plan, which was lauded by some, intends to reduce yearly gasoline distribution expenditures by about ₦1.7 trillion and improve petroleum supply chain efficiency.
It is also an ecologically suitable alternative to what is currently in use.
Compared to typical diesel trucks, the CNG vehicles are estimated to save distribution costs by roughly 40% while simultaneously cutting carbon emissions, aligning the corporation with global energy transition trends.
However, as well-intentioned as the plan may come across, marketers in Nigeria’s oil sector immediately raised concerns centering around massive job losses and disruption in the national fuel supply chain.
To address these issues, the Dangote Group held a high-level meeting with major industry players, including the National Association of Road Transport Owners (NARTO) and the Natural Oil and Gas Suppliers Association of Nigeria.
According to Chinedu Ukadike, NOGASA’s National Publicity Secretary, during the meeting, the refinery assured merchants it would not sell petroleum products directly to customers.
Instead, the refinery will sell to NOGASA members in bulk, who will then distribute to customers through existing routes.
While this seemed to quell concerns, a new issue arose when union members alleged that Dangote’s new drivers were being employed on the premise that they would not join the union, which Dangote disputes.
“What Dangote has shown over time is that he’s not prepared to have workers that will have a say in his employment,” union president Williams Akporeha told Nigerian broadcaster Arise News on Tuesday.
Dangote’s previous agreement with truck drivers and marketers drew conviction from industry observers that the refinery’s distribution plan would greatly benefit the Nigerian fuel market; however, the recent development may constitute a roadblock to this potentially game-changing idea should a consensus not be reached.
