Economy

Fuel Crisis Looms as NUPENG vs Dangote Standoff Escalates

By IDNN Economy Desk

Fuel Crisis Looms as NUPENG vs Dangote Standoff Escalates

Nigeria is on edge as a confrontation between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Dangote Refinery threatens nationwide fuel disruption.

Petrol stations in Sokoto were shut on Monday under NUPENG’s directives, leaving commuters stranded and raising fears of fresh scarcity. At the same time, Dangote Refinery dismissed reports of a planned shutdown as “fake news,” while rival unions expressed support for its new distribution model.

Sokoto Shutdowns Trigger Panic

In Sokoto, filling stations were locked and petroleum tankers halted along major roads, causing early panic among motorists. Commercial drivers warned that transport fares would rise if the situation persisted. Residents expressed frustration, saying they were left without clear information about the strike.

Dangote Denies Shutdown Reports

Confusion deepened after Reuters reported that the refinery’s petrol unit could be closed for two to three months following technical issues. Dangote Group spokesman Anthony Chiejina swiftly denied the report, insisting operations were ongoing.

Dangote denies refinery shutdown after Reuters report
Dangote denies refinery shutdown after Reuters report

“Fake news,” Chiejina said. “Why ‘could’ if they are sure?”

The refinery, which began operations in January 2024, has already reshaped global petrol flows by cutting European exports to Nigeria and sending cargoes to the US. It plans to ramp up production to 700,000 barrels per day by December 2025.

ADITOP Backs Dangote, Distances From Strike

Adding to the complexity, the Association of Distributors and Transporters of Petroleum Products (ADITOP) distanced itself from NUPENG’s strike. The group’s president, Lawan Dan-Zaki, said it supported Dangote’s direct-distribution programme, which bypasses traditional transport networks to cut costs and improve efficiency.

ADITOP pledged to keep moving products nationwide, rejecting what it called “uncalled for” strike threats.

FG Rushes to Mediate

The federal government has moved up a tripartite conciliation meeting between NUPENG, Dangote Group, and stakeholders. Labour Minister Muhammadu Dingyadi rescheduled the talks from afternoon to morning in a bid to avert nationwide disruption.

As of Monday, union leaders were still en route to Abuja. Government officials admitted that the meeting could not begin until their arrival.

Nigerians Brace for Impact

Analysts warn that if NUPENG expands its strike beyond Sokoto, queues could quickly spread across the country, driving up transport costs and worsening inflation. The refinery’s role as Nigeria’s biggest domestic fuel supplier means any uncertainty carries immediate consequences for the economy.

For ordinary Nigerians, the crisis is not about union politics or corporate rivalries. It is about daily bread — getting to work, powering businesses, and keeping homes running.


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