The Nigeria Union of Petroleum and Pure Gasoline Staff (NUPENG) threatened a nationwide strike starting Monday, 8 September, in protest towards what it described as anti-union practices by the Dangote Petroleum Refinery.
On the coronary heart of the dispute is the refinery’s determination to deploy 4,000 new Compressed Pure Gasoline (CNG) vehicles for direct distribution of gas whereas allegedly asking drivers to shun union membership.
The refinery’s new logistics mannequin, unveiled in June, is poised to reshape Nigeria’s downstream sector. But it surely has additionally pitched considered one of Africa’s richest males, Aliko Dangote, towards considered one of Nigeria’s strongest unions, elevating questions on employees’ rights, monopoly fears, and the altering stability of energy within the nation’s petroleum business.
In a press release after its nationwide government council assembly final week, NUPENG accused the refinery of “flagrant violation of employees’ constitutional rights to freely affiliate” and vowed to mobilise its members to withstand.
“Dangote is discarding drivers who toil day and night time, whereas searching for to silence them,” stated Olawale Afolabi, NUPENG’s nationwide secretary. “They don’t need the employees to have any voice or illustration.”
The President of the Petroleum Merchandise Retail Shops Homeowners Affiliation of Nigeria (PETROAN), Billy Gillis-Harry, additionally stated the motion of Dangote might “push smaller operators and truck house owners out of enterprise” and tilt the market towards monopoly.
The union’s strike discover, nevertheless, has not gained unanimous backing. The Petroleum Tanker Drivers (PTD) department, which historically is considered one of NUPENG’s most influential arms, urged its members to disregard the directive, describing it as “insensitive and unacceptable.”
“This can be a clarion name to all Petroleum Tanker Drivers throughout Nigeria to please ignore the strike discover,” PTD leaders stated in a Friday assertion. “Any motion towards the sleek stream of petroleum merchandise within the nation is a disservice and an abuse of the ability of unionism.”
Equally, the Direct Trucking Firm Drivers Affiliation (DTCDA) distanced itself from the strike, calling it “a disservice to Nigerians.”
Dangote’s new gas order
In June, the Dangote Refinery introduced it will start direct distribution of Premium Motor Spirit (PMS) and diesel to filling stations, producers, aviation corporations, telecoms, and different bulk shoppers.
The programme was backed by 4,000 CNG-powered vehicles, new distribution hubs, and “daughter booster stations” for rural and underserved areas. It additionally features a credit score scheme: patrons who carry 500,000 litres of gas can receive one other 500,000 litres on two weeks’ credit score, backed by a financial institution assure.
The refinery says the purpose is straightforward: scale back logistics prices (which at present account for 10–30 per cent of pump costs), promote cleaner power, and stabilise provide throughout Nigeria.
Analysts say the initiative might decrease gas prices and ease inflationary pressures within the quick to medium phrases. However others warn that the aggressive rollout might stifle the operations of personal depot house owners, modular refiners, and impartial entrepreneurs.
PETROAN warned that Dangote’s market dominance might end in a pricing technique that originally lowers costs to achieve market share however might subsequently result in elevated costs, with potential disadvantages to shoppers in the long run.
The Nigeria Labour Congress (NLC) has backed NUPENG. Its president, Joe Ajaero, accused the Dangote Group of “exploiting Nigerian employees whereas disregarding their constitutional rights.”
“We name on the president to instantly name Aliko Dangote and Alhaji Sayyu Dantata to order,” Mr Ajaero stated. “The federal government should not look the opposite manner whereas a couple of people privatise the nation’s power future and enslave its workforce.”
Dangote Group Chief Branding and Communications Officer, Anthony Chiejina, informed this newspaper final week that “Dangote is creating job for 8,000 individuals that’s suppose to be roaming the road of Nigeria and anyone can get up and declare that he stated this or that in the meantime he didn’t say such.
“These individuals, they know that when these items kick in, all of the financial profit they used to get earlier than received’t be there once more. That’s their ache.”
In its response, the PTD additionally argues that NUPENG is solely making an attempt to guard a decades-old chokehold on petroleum distribution that Dangote’s mannequin now threatens to dismantle.
NUPENG earlier than Dangote
For many years, NUPENG has been considered one of Nigeria’s most influential employees unions. Its members — tanker drivers, depot employees, and oil workers managed the motion of transported gas throughout the nation.
That management translated into immense leverage. Any strike or work stoppage might paralyse the economic system in a single day, inflicting gas queues, hovering transport fares, and meals inflation.
Through the army years, NUPENG was greater than a labour physique. It grew to become a political power, aligning with pro-democracy activists and staging crippling strikes after the annulment of the June 12 1993 election. Union leaders have been detained, proscribed, and typically jailed, however their actions helped weaken army rule.
Even within the democratic period, NUPENG’s threats of strikes over wages, subsidies, and authorities insurance policies compelled hurried concessions. Alongside PENGASSAN, the senior workers union of Petroleum and Pure Gasoline employees, it wielded a “double strike” energy: halting each oil manufacturing offshore and gas distribution throughout the nation.
However the rise of the Dangote refinery threatens that leverage. For the primary time in a long time, Nigeria has a personal, built-in refining and distribution system that might bypass the union’s chokehold.
What the regulation says
Nigeria’s legal guidelines and worldwide commitments assure employees’ rights to organise and freely select their unions.
Part 40 of the Structure upholds the best to assemble and affiliate, whereas the Commerce Unions Act affirms the best to type and be part of unions.
As well as, Part 9(6) of the Labour Act prohibits employers from forcing employees to both be part of or chorus from becoming a member of a union. The nation has additionally ratified Worldwide Labour Organisation (ILO) Conventions 87 and 98, which defend freedom of affiliation and the best to collective bargaining.
Labour regulation analyst Yinka Chukwuemeka Ogunnubi says each NUPENG and Dangote are strolling a positive line. He explains that whereas Dangote’s alleged insistence that 4,000 new truck drivers signal undertakings to not be part of unions violates Part 40 of the Structure, Part 9(6) of the Labour Act, and ILO conventions ratified by Nigeria, NUPENG’s push to power union membership equally infringes employees’ constitutional freedom of affiliation.
In accordance with Mr Ogunnubi, NUPENG retains the best to strike however should strictly observe procedures laid down within the Commerce Disputes Act, together with mediation, arbitration, and lawful strike discover. In any other case, the deliberate nationwide strike dangers being declared unlawful.
“The regulation supplies sufficient room for each events to resolve their variations by means of the correct dispute mechanisms,” Mr Ogunnubi stated, warning that ignoring due course of dangers pushing the nation in direction of lawlessness.
The courts have already affirmed that a number of unions can function in the identical sector.
In October 2022, the Nigerian authorities registered the Congress of College Teachers (CONUA) and the Nationwide Affiliation of Medical and Dental Teachers (NAMDA), regardless of opposition from ASUU.
The Industrial Court docket upheld their registration, ruling that the plurality of unions is lawful.
By extension, employees at Dangote Refinery can freely select whether or not to hitch NUPENG, a brand new affiliation, or none in any respect. Membership is voluntary, in response to the court docket ruling.
READ ALSO: NARTO backs NUPENG, accuses Dangote of monopolistic practices
However the standoff between Dangote and NUPENG is greater than a labour dispute. It speaks to a deeper shift in Nigeria’s power panorama from a union-dominated, import-dependent system to a private-led refining and distribution mannequin.
Financial analyst Paul Alaje warns that whereas Dangote’s initiative might initially stabilise gas provide and decrease costs, there are inherent dangers.
“If Dangote have been to transition to dollar-based gross sales attributable to crude provide points — as occurred in March when naira-based gross sales have been suspended — pump costs might rise sharply,” Mr Alaje stated.
“That might push up transport and manufacturing prices, worsening inflation and eroding the anticipated advantages for strange Nigerians.”
For strange residents, the stakes are excessive. If NUPENG embarks on strike actions, gas queues and black markets might return. If Dangote dominates unchecked, smaller gamers might vanish, elevating fears of monopoly pricing.
As each side dig in, analysts say the problem for the federal government is to uphold employees’ rights, guarantee honest competitors, and forestall a showdown that might as soon as once more maintain Nigerians hostage on the pumps.
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