On Monday, September 8, 2025, a highly anticipated meeting involving the Federal Government of Nigeria, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the Dangote Group, and other critical stakeholders in the nation’s oil and gas sector concluded without resolution, plunging Nigerians into deeper uncertainty over fuel prices and availability. The deadlock has intensified fears of an imminent fuel scarcity, rising transportation costs, and further economic strain for millions of citizens already grappling with the impacts of inflation and recent fuel price hikes. This development, reported by Alexa News Nigeria, underscores the growing tensions between labor unions, private industry players, and the government, with far-reaching implications for Nigeria’s energy sector and its citizens.
The meeting, originally scheduled for 3:00 PM but delayed until after 5:00 PM, aimed to address a simmering dispute between NUPENG and the Dangote Group, particularly over allegations of anti-labor practices by the latter. Despite high expectations, no official statement was released by the Minister of Labour and Employment, Muhammad Dingyadi, NUPENG’s leadership, or the Dangote Group at the time of the report. The failure to reach a consensus has heightened concerns about the stability of fuel supply chains and the potential for further price increases, as labor unions threaten industrial action that could disrupt petroleum product distribution nationwide.
Background of the Dispute
The core issue fueling the conflict revolves around the Dangote Group’s labor policies, particularly its stance on unionization. NUPENG, a powerful union representing workers in Nigeria’s oil and gas industry, has accused the Dangote Refinery, led by billionaire industrialist Aliko Dangote, of implementing policies that undermine workers’ rights. Specifically, NUPENG alleges that the refinery’s management has barred drivers recruited to operate its fleet of 10,000 Compressed Natural Gas (CNG) trucks from joining trade unions, a move the union describes as a violation of the 1999 Constitution of Nigeria and international labor laws to which the country is a signatory.
The Dangote Refinery, a $20 billion mega-project near Lagos, began full operations on September 1, 2024, and has been hailed as a game-changer for Nigeria’s energy sector. With a capacity to refine 650,000 barrels of crude oil per day, it is the largest refinery in Africa and was expected to reduce Nigeria’s dependence on imported petroleum products, create jobs, and stabilize fuel prices. However, the ongoing dispute with NUPENG threatens to derail these ambitions, as the union’s actions could disrupt the distribution of petroleum products, including Premium Motor Spirit (PMS), commonly known as petrol.
NUPENG’s grievances are not new. In a statement issued on September 5, 2025, signed by its President, Williams Akporeha, and General Secretary, Afolabi Olawale, the union accused the Dangote Refinery of engaging in “unconscionable business practices” that prioritize profit over workers’ welfare. The union specifically pointed to the refinery’s recruitment practices, alleging that drivers hired by MRS Holdings, a company owned by Aliko Dangote’s cousin, Alhaji Sayyu Ali Dantata, were forced to sign undertakings not to join any union. NUPENG described this as tantamount to “modern-day enslavement” and an attempt to amass “filthy wealth” at the expense of workers’ rights.
The union’s frustration stems from its initial support for the Dangote Refinery during its construction and commissioning phases. NUPENG had anticipated that the refinery would create thousands of jobs, enhance local capacity, and operate under a labor-friendly environment. However, the union now accuses the refinery of betraying this trust by pursuing policies that could monopolize petroleum distribution, stifle competition, and drive up prices, ultimately harming Nigerian consumers.
The Meeting and Its Failure
The high-level consultative meeting was convened by the Federal Government to mediate the dispute and prevent a full-blown crisis in the oil and gas sector. The Minister of Labour and Employment, Muhammad Dingyadi, emphasized the importance of the meeting, stating, “We are here to try and reconcile our labor unions in the oil industry and the employers in Dangote Group. This is not the first time we are having this kind of dispute.” Despite the government’s efforts, the meeting failed to produce a resolution, leaving stakeholders and observers concerned about the next steps.
According to a source familiar with the proceedings, who spoke to Alexa News Nigeria on condition of anonymity, the details of the meeting remain unclear, but it appears that no agreement was reached. “Details are still sketchy. However, it seems there is no agreement yet. I should know from tomorrow (Tuesday),” the source said. The lack of transparency regarding the outcome has only fueled speculation and anxiety among Nigerians, who are already reeling from the economic fallout of recent fuel price increases.
NUPENG’s Strike Action and Immediate Impacts
In response to the deadlock, NUPENG escalated its industrial action on Monday, September 8, 2025, by shutting down major petroleum depots and some filling stations in Lagos and Warri. The union directed its Petroleum Tanker Drivers (PTD) branch to stop loading petroleum products from Dangote depots, a move that threatens to disrupt fuel supply chains across the country. This action has already led to increased transportation costs in Warri, where reports indicate that commuters are paying higher fares due to the strike.
The strike’s impact is particularly concerning given Nigeria’s heavy reliance on road transport for petroleum distribution. With NUPENG’s tanker drivers refusing to load products from Dangote depots, fuel scarcity could become a reality in the coming days, especially if other unions, such as the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), and the Nigerian Association of Road Transport Owners (NARTO), join the strike as they have threatened.
As of Monday night, fuel prices in parts of the Federal Capital Territory (FCT), Abuja, remained relatively stable, ranging between N885 and N910 per litre. However, at Empire Filling Station in Abuja, prices were reported at N950 per litre, signaling early signs of price volatility. The threat of a broader strike by multiple unions could push prices even higher and exacerbate fuel shortages, further straining the finances of ordinary Nigerians.
Broader Economic Context
The dispute between NUPENG and the Dangote Refinery comes at a time when Nigerians are already grappling with significant economic challenges. The removal of fuel subsidies in 2023 led to a sharp increase in petrol prices, sparking widespread protests and contributing to inflation rates that have eroded purchasing power. Although the government later reinstated partial subsidies, the Nigerian National Petroleum Company Limited (NNPCL), the country’s sole importer of petrol, raised prices by 45% in August 2025, bringing the pump price to approximately N897 per litre. This adjustment was intended to align prices closer to market rates, but it has placed additional burdens on consumers.
The Dangote Refinery’s entry into the market was initially seen as a potential solution to Nigeria’s fuel price woes. Since beginning petrol production in September 2024, the refinery has refined approximately 3.5 billion litres of PMS, accounting for 55% of the country’s daily consumption of 50 million litres. This has significantly reduced Nigeria’s reliance on imported petrol, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reporting a drop in imports from 44.6 million litres per day in August 2024 to 14.7 million litres by April 2025.
Moreover, the refinery has engaged in a price war with NNPCL, leading to multiple price reductions. In April 2025, Dangote slashed its ex-depot price of PMS from N840 to N820 per litre, the second reduction in two weeks. This brought pump prices at partner retail stations, such as MRS and Ardova, to between N890 and N920 per litre across various regions. Petroleum marketers, including the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, and the National President of PETROAN, Billy Gillis-Harry, have welcomed this competition, arguing that it benefits consumers by driving prices down.
However, the current dispute threatens to reverse these gains. The failure to resolve the conflict with NUPENG could disrupt the refinery’s operations and its ability to maintain competitive pricing. Furthermore, the recent collapse of a naira-for-crude deal between Dangote Refinery and NNPCL has added another layer of complexity. The deal, which allowed Dangote to purchase crude oil in naira rather than foreign currency, was intended to reduce foreign exchange pressures and stabilize fuel prices. Its collapse has led to a temporary halt in fuel supply from the refinery, raising concerns about potential shortages.
The Role of Compressed Natural Gas (CNG)
The dispute also highlights tensions surrounding the Federal Government’s push for Compressed Natural Gas (CNG) as an alternative to petrol. Following the 2023 fuel subsidy removal, the government launched the Presidential Compressed Natural Gas Initiative (PCNGI) to promote CNG as a cheaper and more environmentally friendly fuel option. As of June 2025, Nigeria had 65 CNG stations nationwide, but recent price hikes have dampened enthusiasm for the initiative.
CNG prices have risen significantly, with commercial vehicles now paying N380 per standard cubic meter (SCM) and heavy-duty trucks paying N450 per SCM, up from N230 and N320, respectively. This represents a 65.22% increase for commercial vehicles and a 40.63% increase for trucks. According to Taofeek Lawal, spokesperson for NIPCO, a major CNG marketer, the price hike was necessary to cover operational costs and stimulate investment in CNG infrastructure. However, it has added to the financial burdens of transport operators and consumers.
The Dangote Refinery’s plan to deploy 4,000 CNG trucks for petroleum distribution has further fueled tensions with NUPENG. The union argues that the refinery’s anti-union policies for these drivers are part of a broader strategy to control the distribution network, sideline existing tanker drivers, and potentially raise fuel prices. NUPENG’s President, Williams Akporeha, has accused the refinery of pursuing policies that “enslave workers” while undermining the livelihoods of thousands of union members.
Government’s Role and Policy Shifts
The Federal Government’s handling of the crisis has come under scrutiny. Reports suggest that the government is considering allowing Dangote Refinery to set its own petrol prices, a move that could mark a significant shift in Nigeria’s fuel pricing structure. This policy, if implemented, would align with the principles of a deregulated market, where prices are determined by supply and demand rather than government intervention. However, it has raised concerns about the potential for price hikes, especially if the refinery’s dispute with NUPENG disrupts supply chains.
Critics argue that the government’s inability to mediate effectively between NUPENG and Dangote reflects broader challenges in managing Nigeria’s oil and gas sector. Despite being Africa’s largest oil producer, Nigeria has historically relied on imported petrol due to the underperformance of its state-owned refineries. The Dangote Refinery was seen as a step toward self-sufficiency, but the current crisis underscores the complexities of transitioning to a locally driven energy market.
The government has also faced criticism for its handling of the naira-for-crude deal with Dangote Refinery. The recent directive from the Federal Government to NNPCL and NMDPRA to resume the deal aims to stabilize fuel prices and ensure supply continuity. However, the earlier collapse of the agreement highlights the fragility of Nigeria’s energy policies and the challenges of balancing private sector interests with public welfare.
Implications for Nigerians
The deadlock between the Federal Government, NUPENG, and Dangote Refinery has far-reaching implications for Nigerians. The threat of fuel scarcity looms large, as disruptions in the supply chain could lead to long queues at filling stations, black-market fuel sales, and further price increases. For a country where millions rely on petrol for transportation, electricity generation, and small-scale businesses, any disruption could have devastating economic and social consequences.
Transportation costs have already begun to rise in areas like Warri, where NUPENG’s strike has limited fuel availability. If other unions join the strike, the impact could spread to major cities like Lagos and Abuja, where fuel prices have so far remained relatively stable. The potential for petrol prices to exceed N1,000 per litre, as speculated by some industry insiders, would exacerbate the cost-of-living crisis, pushing more Nigerians into poverty.
Moreover, the dispute raises broader questions about labor rights and corporate responsibility in Nigeria’s oil and gas sector. NUPENG’s insistence on the right to unionize reflects a broader struggle for workers’ protections in an industry increasingly dominated by powerful private players. The Dangote Refinery’s refusal to allow unionization for its CNG truck drivers has sparked a debate about the balance between business interests and workers’ rights, with NUPENG framing the issue as a fight against exploitation.
Calls for Resolution
Industry stakeholders have called for a swift resolution to the crisis to avert further economic hardship. Abubakar Maigandi, National President of IPMAN, emphasized the need for both parties to reach a “sustainable resolution for the good of all Nigerians.” He warned that prolonged disruptions could lead to widespread fuel scarcity and higher prices, disproportionately affecting low-income households.
Similarly, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been urged to invoke its powers under the Petroleum Industry Act to address alleged anti-competitive practices by the Dangote Refinery. NUPENG has specifically called on the NMDPRA to curb what it describes as the refinery’s attempts to “monopolize distribution” and “crush competition,” which could lead to higher prices and reduced consumer choice.
Looking Ahead
As Nigeria navigates this crisis, the path forward remains uncertain. The Federal Government faces the daunting task of balancing the interests of labor unions, private industry players, and consumers, all while maintaining stability in a volatile energy market. The outcome of the dispute will likely shape the future of Nigeria’s oil and gas sector, determining whether the Dangote Refinery can fulfill its promise of transforming the country’s energy landscape or become mired in labor disputes and supply chain disruptions.
For now, Nigerians are bracing for the possibility of higher fuel prices and shortages, with the specter of economic hardship looming large. The failure of the September 8 meeting underscores the urgency of finding a resolution that addresses the concerns of all parties while prioritizing the welfare of the Nigerian people. As the nation awaits further developments, the hope is that dialogue and compromise will prevail, preventing a full-blown crisis that could further strain an already fragile economy.
