It’s increasingly difficult to ignore the troubling contradictions in Nigeria’s oil and gas sector, particularly when it comes to the role of the oil workers’unions. The Nigerian Labour Congress (NLC) and its affiliates, including the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG), seem to have turned into the attack dogs for political interests, waging a battle against a symbol of efficiency in an otherwise decayed industry: Dangote Refinery.
Dangote Refinery, a massive private investment, has emerged as a rare beacon of functionality in a sector long plagued by inefficiency, corruption, and waste. However, the latest confrontation between the oil workers’ unions and the refinery underscores the deeper issues within Nigeria’s oil and gas labour politics. It raises uncomfortable questions about the priorities and accountability of organized labour.
It’s a tragic irony that the very unions meant to protect the welfare of workers are now seen as the primary instigators of political and economic turmoil. The issue at hand is the unions’ opposition to Dangote Refinery over a dispute involving over 800 Nigerian workers. Instead of supporting the country’s push for local refining, which would help stabilize domestic supply and contribute to currency stability, the unions have taken a confrontational stance. But what is truly perplexing is their silence during years of inefficiency and corruption at state-owned refineries.
For decades, Nigeria’s three major refineries in Port Harcourt, Warri, and Kaduna have operated at almost zero capacity, consuming billions of dollars in taxpayer money for turnaround maintenance projects that yielded no results. Yet, the same unions that now criticize Dangote Refinery turned a blind eye to the rot in the public sector refineries. They did not protest when staff at these facilities were paid millions in salaries despite the refineries standing idle for years. In fact, some even allege that union members benefited from this inefficiency, pocketing up to ₦120 billion annually in salaries for work that was never done.
This apparent hypocrisy raises an essential question: Why are these unions so vocal now when it comes to a private refinery, yet have remained largely silent in the face of decades of mismanagement in the public sector? Why are they fighting against a company trying to change the narrative of Nigerian refining, when they had no issue with the inefficiencies and corruption in state-owned operations?
Comparing Dangote Refinery to the country’s ailing government refineries is both unfair and misguided. As a private establishment, Dangote Refinery operates under a different model—one that is driven by profit and efficiency, much like private universities and hospitals. These are not subject to the same unions as public institutions, nor should they be. Dangote has been transparent in its efforts to improve the Nigerian oil and gas sector, but the unions, it seems, are determined to sabotage the progress.
What is more concerning is the legal and economic implications of the unions’ actions. By directing their members to disrupt Dangote Refinery’s operations, the unions are essentially sabotaging a private entity’s contractual agreements with suppliers. They have not fully considered the ramifications of such actions—on fuel supply, on job creation, or on investor confidence. Nigeria needs more investments in refineries, not less. The arbitrary threats to shut down Dangote’s operations send a chilling message to other potential investors who may be considering entering the Nigerian market.
Another troubling aspect of the unions’recent actions is the claim that they have been extorting Dangote Refinery. According to the company, unions have been collecting as much as ₦50,000 per truck for every load of fuel that passes through the refinery, amounting to ₦100 million a day. This charge has nothing to do with safety, infrastructure, or even workers’ welfare—it is simply an extortionate practice that raises the price of fuel and exacerbates the cost of living for Nigerians. In one week alone, the unions could be siphoning off ₦500 million from Dangote’s operations.
This is no longer a question of trade union activism; it is a matter of economic manipulation. The price of fuel, transport fares, food costs, and overall inflation are all directly impacted by such practices. Every Nigerian ultimately pays the price for the unions’ silence on issues like corruption and inefficiency in the state-owned refineries, and for their actions against a private refinery that is attempting to operate with integrity.
It’s crucial to question the unions’ motives. Why did PENGASSAN and NUPENG overlook the countless billions of Naira spent on maintaining moribund refineries while they remained dormant? Why didn’t they demand accountability or wage protests against the colossal waste of public funds? Could it be that the unions themselves benefitted from the dead state refineries, receiving substantial payouts for doing nothing?
While allegations of ₦120 billion being siphoned off through salaries and emoluments remain unverified, neither PENGASSAN nor NUPENG have issued a clear rebuttal. This silence only amplifies suspicions about the transparency—or lack thereof—in their activities. If this claim is proven, it would reinforce the urgent need for reform in both union operations and the management of Nigeria’s refineries.
The unions must reconsider their stance. Dangote Refinery, by all accounts, is an important part of Nigeria’s push toward self-sufficiency in petroleum products. It has the potential to stabilize the domestic market, ease pressure on the country’s foreign exchange reserves, and generate thousands of jobs. The unions, rather than threatening to disrupt operations, should consider how they can partner with Dangote Refinery to ensure workers’ rights are protected, while also contributing to the overall betterment of the Nigerian economy.
If the unions believe that the company has violated labour laws, they should follow the proper legal channels, whether that’s petitioning the Ministry of Foreign Affairs, the Nigerian Immigration Service, or the National Industrial Court. Public protests based on unverified claims not only harm the economy but also weaken the credibility of the unions themselves.
At this juncture, Nigerians are watching closely. For the sake of the nation’s economic recovery and its workers, it is essential that the unions take a step back and reassess their tactics. The future of the Nigerian oil sector depends on accountability, transparency, and, most importantly, a commitment to national development.
Ifeanyi Izeze writes from Abuja. Contact: iizeze@yahoo.com; +234-8033043009
