A fuel shortage may be imminent as the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) holds firm in their stance against Dangote Refinery.
The basis of the dispute is the refinery’s plan to import and deploy thousands of Compressed Natural Gas (CNG) trucks (estimated to be 4,000 to 10,000) for fuel distribution logistics. NUPENG claims the newly hired drivers, are being required to sign undertakings stating they cannot join any existing oil and gas unions, and are illegal and antiworker.
In June, NUPENG and National Association of Road Transport Owners (NARTO) objected and requested assurances from the Dangote Powers that their driver recruitment would respect union rights. Allegedly, those assurances were not forthcoming, either directly or indirectly.
Consequently, NUPENG has announced that its Petroleum Tanker Drivers Branch Members will be going on a nationwide strike on Monday (Sept 8), noting that they will refusing to load petroleum products. The Union warned that if the company’s schemes are not halted, it will amount to an attack on their livelihoods, unfair competition, and an increase in the price of petroleum products.
This standoff is especially concerning for Nigeria’s petroleum sector, as the Dangote Refinery, Africa’s largest refinery, is critical to the country’s transition away from fuel imports. However, Dangote’s gasoline, specifically, is in a declining state. The key Residue Fluid Catalytic Cracker Unit (RFCCU)’s was taken offline due to technical faults, including catalyst leaks, which reliability has not been established, and that RFCCU is expected to be offline for “two weeks” in further jeopardizing available fuel.
NUPENG has reached out to the various regulatory bodies, including the Petroleum Industry Act’s enforcement agency, and requested for urgent intervention to ensure that laws of fairness are respected. they claimed that allowing the company (Dangote) to operate beyond established labour and industry practices is attempting to undermine the sector and bring economic harm to the average Nigerian.
As these tensions rise, there is much public interest in whether the strike and replenishment supply will be averted or whether it will actually become a reality. With both logistical and production issues now converged, Nigeria is nearing its next real challenge in energy security.