Dangote refinery–NUPENG dispute unsettles Nigeria’s downstream sector

Nigeria is one of the largest economies in Africa and relies heavily on the petroleum production sector for a sizable part of the country’s economy. A recent dispute between the Dangote refinery and one of the nation’s largest workers’ unions has unsettled the region’s downstream sector. NUPENG has stated that its members will go on a nationwide strike following the Dangote Refinery’s implementation of a new distribution plan set to start soon. And the region is suffering as the public is split as to which side is on the right side of the law.

NUPENG has claimed that Dangote’s workers are being persuaded away from unions

When a company as large as Dangote is accused of violating workers’ rights, the matter needs serious attention from the relevant authorities. The issues stem from Dangote’s decision to deploy 4,000 trucks for direct distribution of large-scale petroleum businesses. The union has accused Dangote of violating workers’ rights and forcing them to avoid joining the union.

Dangote is leading the change of Nigeria’s energy sector, and the inevitable backlash from unions was always going to be part of that expansion and repositioning of the country’s energy focus. NUPENG has stated that they are preparing to mobilize members for a nationwide strike if Dangote does not back down from its plans.

“Dangote is discarding drivers who toil day and night, while seeking to silence them. They don’t want the workers to have any voice or representation.” – Olawale Afolabi, NUPENG’s national secretary

Not all of Nigeria’s unions are backing the proposed strike by NUPENG

The Petroleum Tanker Drivers (PTD) branch is an integral part of NUPENG’s organization; however, they have advised their members to disregard the call for a strike, describing it as “insensitive and unacceptable. Nigerian worker unions are widely regarded as some of the most powerful organizations in the region and have the power to change a company’s stance or plans.

“This is a clarion call to all Petroleum Tanker Drivers across Nigeria to please ignore the strike notice. Any action against the smooth flow of petroleum products in the country is a disservice and an abuse of the power of unionism.”

Another union has joined that stance. The Direct Trucking Company Drivers Association (DTCDA) has stated that the strike is “a disservice to Nigerians.” Dangote, however, is moving forward with its plans to begin direct distribution of Premium Motor Spirit (PMS) and diesel to filling stations, manufacturers, aviation companies, and several other large sectors.

Dangote is also offering potential customers a credit line to purchase fuel. Customers who purchase 500,000 liters of fuel can obtain another 500,000 litres on two weeks’ credit, backed by a bank guarantee. It would appear that the strike has no merit and no foothold to stand on, according to several experts in the field. How will the issue be resolved? With Petroleum product marketers stating that they aim to join the strike, the country is on edge right now.

Can the Nigerian Federal government step in to resolve the problems

That would be the hope for many Nigerians who rely on the petroleum industry. Dangote is a large employer, and if the strike does go forward, we expect chaos to ensue at the Dangote Refinery. Rarely does the federal government get involved, but this situation might be the exception to the rule. African workers are not to be trifled with and demand respect from their employers. Perhaps that is the root of the problem. The unions see the move by Dangote as a power grab, and Dangote sees the strike as a disservice to the Nigerian people. Hopefully, for both parties involved, a resolution can be found soon.