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Nigeria: Dangote’s new truck fleet sparks union standoff, threatens fuel supply

Lagos, sept 8  — The highly anticipated rollout of the Dangote Petroleum Refinery’s 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide fuel distribution has been met with a fierce and escalating conflict, as the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and other marketers threaten a nationwide strike. The dispute, which centers on job security and alleged anti-union practices, could cause a major disruption to Nigeria’s fuel supply chain.

The union has reportedly initiated several meetings with Dangote Group management to resolve the issue, but these appeals have allegedly been ignored, prompting NUPENG to issue a strike notice effective from Monday.

The new fleet, a landmark N720 billion investment, is a cornerstone of the Dangote Group’s strategy to streamline fuel distribution, reduce logistics costs, and promote cleaner energy. The plan aims to bypass traditional middlemen and deliver fuel directly to filling stations and other bulk users, a move that the company says will make fuel more “affordable for consumers”.

However, this innovative approach has created a significant point of contention. NUPENG, representing thousands of petroleum tanker drivers, has accused the Dangote Group of anti-labour practices. In a statement, the union claimed that the company is requiring newly hired drivers for the CNG trucks to sign an undertaking not to join any existing union. NUPENG’s leadership described this as a violation of the “constitutional right to freedom of association and a breach of international labor conventions”.

The planned strike has garnered support from other industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN). These groups have warned that Dangote’s direct-to-retailer model could render existing distribution networks obsolete, jeopardizing the livelihoods of thousands of marketers and truck owners who have invested billions in the sector.

As of Monday, the Federal Government has intervened, calling for an urgent meeting between the parties involved to avert the looming industrial action. The outcome of the meeting is expected to determine whether the new trucks will begin their journey and whether the nationwide strike will proceed, leaving the fate of Nigeria’s fuel distribution in a delicate balance.

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