Nigerian truckers end strikes against Dangote refinery

Nigeria's Nupeng oil workers union has suspended strikes targeting the country's Dangote oil refinery, ending two days of gridlock that had shut in its fuel supplies, the union said Sept. 9.

A statement from Nupeng said the decision to suspend the strike was taken after reaching agreements with the Dangote refinery in a meeting brokered by the Nigerian government. The union had called on truck drivers supporting the refinery's operations to begin striking Sept. 8, with no fixed end date.

The union instructed its members to suspend industrial action "with immediate effect", sharing that the refinery owner had answered to its demands. The industrial action was called in protest against the company's growing influence over the downstream fuel market, and particularly its launch of its own truck fleet in August.

Nupeng argues that the rollout of the fleet, which Dangote has promised can deliver fuel for free, will put undue pressure on its workers and reduce competition in the market. The Dangote refinery is currently the only active refinery in Nigeria.

In a memorandum of understanding seen by Platts, part of S&P Global Energy, the Dangote Group agreed in principle to allow its workforce to unionize, and the process should be completed within two weeks. The agreement was drafted after hours of fraught negotiations Sept. 8, and was co-signed by Nigerian unions TUC and NLC, along with the government's downstream oil regulator the NMDPRA.

Two days of truck driver strikes had raised concerns over nationwide fuel shortages linked to a protracted union battle, and evoked memories of similar incidents seen roughly two years ago. A second oil workers union, Pengassan, had also threatened to escalate strikes by calling its own members to action if Nupeng demands went unmet.

Pengassan union members include administrative staff responsible for handling documentation for oil production and export terminals, as well as in refineries and fuel depots. The group had criticized a failure by the Dangote Group to allow its staff to unionize, and warned in statement Sept. 8 that it would shut down the refinery operations "as a last resort."

The Dangote Group was not available for comment.

The truce agreement could draw a line under a challenging chapter for the 650,000 b/d refinery as it has sought to stabilize its operations and make good on promises to end Nigeria's gasoline deficit.

The company's project to launch its own distribution network of 4,000 CNG-powered tankers has yet to come to fruition, with less than a quarter of intended vehicles currently in the country due to shipping delays in China. As a result, Nigeria has remained largely reliant on third-party logistics providers to move fuel across the country, including from Dangote and other non-affiliated depots.

A Nupeng official previously said the group's strike activity was also in protest against proposed fuel import taxes from the Nigerian government due to take effect in 2026, which it has said could stifle market competition. The government has not officially responded to the complaint, which was not acknowledged in the MoU with Dangote.