Dangote vs. NUPENG: Crisis worsens as FG’s mediation collapses, experts react

Hamilton Nwosa
Writer

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By Obinna Uballa

The dispute between Dangote Petroleum Refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG) deepened on Monday night after a federal government-brokered peace meeting ended in a deadlock when Dangote representatives walked out.

The meeting, which lasted nearly seven hours at the Ministry of Labour in Abuja, was co-chaired by Labour Minister Muhammad Dingyadi and Minister of State for Labour Nkeiru Onyejeocha.

It was attended by executives of NUPENG, the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), representatives of the Dangote Group and MRS Petroleum, as well as top officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Briefing journalists after the session, NLC spokesperson Benson Upah confirmed that the talks collapsed after Dangote officials exited abruptly.

“The representative of the Dangote refinery walked out on the minister and organised labour,” Upah said. “Even when we bent backwards to accommodate his uncompromising behaviour, he still did what he had to do. So we are left with no option but to do the needful. The action continues.”

The stalemate comes as NUPENG commences an industrial strike on September 8, warning the action could trigger nationwide fuel scarcity. The union is protesting Dangote’s plan to import 4,000 Compressed Natural Gas-powered trucks for direct distribution of fuel, which it claims will render Petroleum Tanker Drivers jobless.

According to NUPENG, the refinery has barred newly recruited CNG truck drivers from joining any union, describing the policy as an attack on workers’ rights guaranteed by the Constitution and international labour conventions.

The union also accused Dangote of ignoring earlier meetings with stakeholders, while alleging that MRS Petroleum, owned by Dangote’s cousin Sayyu Dantata, was recruiting drivers under restrictive conditions.

The federal government had summoned both parties for conciliation on Sunday following rising tensions, but negotiations broke down after Dangote officials rejected some resolutions in a proposed Memorandum of Understanding.

Indications had, meanwhile emerged that Dangote had succumbed to pressure and allowed workers to join NUPENG during the meeting on Monday.

Some reports, quoting sources at the meeting, hinted that a memorandum of understanding (MoU) is being drafted for signature by the parties. According to the sources, parties are also considering a two-week timeframe for implementation of the MoU.

Meanwhile, economic and industry experts have weighed in on the escalating standoff, warning that organised labour faces an uphill battle.

“This is just laughable,” said economist Kalu Aja. “He who has scale always wins in an economic war. You are importing PMS but attempting to fight a man who has a local refinery? He reduced the price; you also reduced the price. He has played the Pac-Man strategy and gone after your cash cows, the logistic trucks. You have no refineries to fight him, checkmate. Dangote has won. If you can’t beat him, join him or build your own local refinery.”

Similarly, project manager Nosa Uwaifo, noted that Dangote’s dominance stems from his massive investment and strategic positioning.

“He took a huge risk, invested, built the refinery, and is now doing everything needed to ensure its success in order to meet his financial obligations,” Uwaifo said. “It is what it is.”

The labour crisis comes amid ongoing efforts by Dangote to stabilise domestic fuel supply and reduce dependence onh imports. However, with both sides digging in, analysts warn the dispute could disrupt distribution networks and escalate fuel scarcity fears nationwide.

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