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Nigeria’s Trade Unions and the Urgent Need for Reform By Damilola Omosebi

by Present Nigeria
October 7, 2025
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The revelation: A storm is gathering over one of Nigeria’s most powerful labour unions, and the thunderclap may soon bring its roof down.

1 The Once-Fearless Defender Now Stands Accused

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The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) once wore the robe of a fearless defender of workers’ rights. Today, it stands accused of having shed that robe, donned a silk agbada, and recast itself as a cartel fattened on levies, intimidation, and extortion. The elders of the Petroleum Tanker Drivers (PTD), the very backbone of the union, are no longer whispering; they are shouting from the rooftops, demanding the resignation of NUPENG’s president, Comrade Williams Akporeha, and his general secretary, Comrade Afolabi Olawale. Their charge sheet reads like the script of a Nollywood political thriller: corruption, abuse of office, intimidation, and dragging a once-respected body into national ridicule.

But scratch beneath the drama and you’ll find a darker truth: NUPENG no longer behaves like a union. It behaves like a cartel, holding Nigeria’s fuel supply by the throat while sipping champagne in first-class jets. The list of alleged sins is long: harassment of drivers, defiance of court orders, illegal levies at depots, and the conscription of members into street-level enforcers. Its notorious N39,000 “gate fee” per tanker truck imposed without law, regulation, or shame reportedly generates billions—a hidden tax, a shadow treasury, none of it declared, none of it accountable.

Let’s do the maths. One fuel truck carries 33,000 litres. At N39,000 per truck, that’s about N1.18 slapped on every litre. Nigeria consumes roughly 50 million litres daily. That means NUPENG potentially rakes in N59 million a day, N1.8 billion a month, nearly N22 billion a year, money that does not enter the nation’s coffers. At gas terminals, it is allegedly even worse, with members of the Nigeria Liquefied and Compressed Gases Association (NLCGA) complaining of paying N72,000 per truck before loading. That’s another estimated N3 billion in a year’s sweep, diverted straight into the union’s opaque vaults.

This isn’t trade unionism. It is armed robbery with an invoice.

2 A Bewildering Web of Denials and Counter-Accusations

2.1 NUPENG’s Vehement Defense

In response to these devastating allegations, NUPENG has mounted a vigorous defense, dismissing the accusations as “blackmail” aimed at tarnishing the union’s image and manipulating public opinion . The union, currently locked in a bitter battle with Dangote Refineries over unionisation, claims it has become the target of a coordinated smear campaign by powerful interests. In a strongly worded statement, NUPENG declared: “They are pained by our victory over unionisation battles against them, and they are out for revenge by attacking our reputation and activities” .

The union argues that the collections at depots are legitimate and necessary, explaining that multiple associations operate at petroleum depots—including Truck Owners Association, Independent Marketers Association, and Major Marketers Association—each with its roles and responsibilities . According to NUPENG, it often serves as a central collection point for efficiency, with dues and levies collected from members used for critical interventions:

· Safety training: Quarterly sessions across zones with FRSC, Police, Fire Service, and state traffic agencies
· Health insurance: A scheme with Leadway Health Insurance for tanker drivers, whom the union described as “accidents in waiting” if left untreated while transporting inflammable products
· Highway security: Mobilisation of security agencies to protect drivers from hijackers, kidnappers, and criminals along major routes
· Union dues: Funding the general running of the union

2.2 The Tangled Web of Broader Labour Conflicts

The controversy surrounding NUPENG cannot be understood in isolation from the broader context of labour relations in Nigeria’s oil and gas sector. The union has been engaged in a high-stakes confrontation with the Dangote Petroleum Refinery, culminating in a strike that threatened to paralyze the nation’s fuel supply in September 2025 . The core issue: allegations that the refinery was preventing new drivers of its 4,000 CNG-powered trucks from joining the union, instead forcing them to pledge allegiance to a company-backed union .

The Nigeria Labour Congress (NLC) has thrown its full weight behind NUPENG, framing the conflict as something far more sinister than a simple labour dispute. In a blistering statement, NLC President Comrade Joe Ajaero declared: “We have it on good authority that Dangote Refinery pays one of the lowest wages in the Oil and Gas sector in Nigeria today and treats its staff members beneath acceptable standards” . The NLC accused the Dangote Group of employing a business model that “clearly enslaves” and is “not in any way developmental,” pointing to what it described as a consistent record of union-busting, exploitative labour practices, and monopolistic capture of markets to the detriment of both workers and the Nigerian people .

Dangote Refinery has fired back with its own stunning allegations, challenging NUPENG to explain who was responsible for the alleged $18 billion “wasted” on government-owned refineries without producing any results . The company questioned why the Port Harcourt, Warri, and Kaduna refineries remain inactive despite years of huge investments, and reminded the public of NUPENG’s role in opposing the 2007 privatisation of the Port Harcourt and Kaduna refineries—a move Dangote claimed could have revived the moribund plants .

3 Rotten to the Core? The Structural Rot in Trade Union Governance

3.1 The Legal Framework Facilitating Abuse

The Trade Unions Act is the main legislation regulating trade unions in Nigeria, with Section 2 making it mandatory for a trade union to be registered and prohibiting the operation of an unregistered trade union . The registration process itself may contribute to the consolidation of power in the hands of a few. Section 3(2) of the Trade Unions Act states that an application for registration may be rejected if the Registrar believes “any existing trade union is sufficiently represented of the interests of the class of persons whose interests the union is intended to protect” . This provision effectively creates protected monopolies in union representation, potentially shielding established unions from competition and accountability.

Once registered, trade unions in Nigeria are considered legal entities with the capacity to sue and be sued, though they are not corporations . This quasi-juristic status creates a governance grey area—unions possess legal personality without being subject to the same transparency requirements as corporations. The regulatory oversight appears insufficient to prevent the kinds of abuses alleged in NUPENG’s case, with the Registrar of Trade Unions possessing limited powers to investigate internal union finances or management practices.

3.2 A Culture of Impunity and Failed Accountability

The allegations against NUPENG point to a broader culture of impunity within some trade unions, where leadership becomes entrenched and accountable to no one. The claim that “millions vanish monthly” from due collections with no apparent auditing speaks to a critical governance failure. When the union states that “only PTD-NUPENG members are seen and heard” among the various associations collecting dues at depots , it inadvertently highlights the opacity problem—visibility without transparency.

Nigeria’s national anti-corruption framework has proven woefully inadequate in addressing systemic corruption across all sectors, including labour unions. The implementation of the National Anti-Corruption Strategy (NACS) has been plagued by challenges, with a 2023 assessment revealing limited completion of its key milestones . The assessment found that:

· Corruption Risk Assessment reports for government ministries had not been published
· Half-yearly reports on the status of anti-corruption strategy implementation were not being produced
· A framework for monitoring anti-corruption cases by CSOs and government agencies had not been deployed

This failure of national anti-corruption mechanisms creates an environment where alleged malfeasance within powerful institutions like trade unions can flourish unchecked.

4 The Bigger Picture: A Nation Held Hostage

4.1 The Genuine Worker Struggles Amidst the Crisis

The greatest tragedy in this saga is reserved for the tanker drivers themselves—the men whose sweat and spilled blood lubricate the nation’s fuel economy. They drive rickety trucks on death-trap highways, battling fatigue, accidents, fires, and the daily gamble of survival. For this, many reportedly get no pension, no insurance, no fallback plan. Should calamity strike, they risk being discarded like worn tyres.

NUPENG claims it provides critical welfare services for these drivers, including health insurance and safety training . Yet the very fact that such basic protections are framed as union benefits rather than industry standards speaks volumes about the precariousness of work in a sector that generates enormous wealth. The union’s description of tanker drivers as “accidents in waiting” if left untreated is a startling admission of the dangerous conditions these workers face daily, even as it defends its collection of funds to address these conditions.

Meanwhile, other segments of Nigeria’s labour movement are fighting entirely different battles. The Trade Union Congress (TUC) has been protesting what it describes as “insensitive” tax bills that “impose heavy burdens on our meagre allowances—housing, transport, and even medical benefits, yet fail to promote a progressive taxation system that ensures the rich pay their fair share” . TUC President Festus Osifo highlighted the absurdity of pegging the minimum taxable income at N800,000 per annum when the newly agreed National Minimum Wage stands at N840,000 annually, asking: “How can you tax someone earning approximately the cost of just eight bags of 50kg rice in a year?”

4.2 The Monopoly Question and National Economic Security

The confrontation between NUPENG and Dangote Refinery raises profound questions about monopoly power and who ultimately controls Nigeria’s economic destiny. The NLC has accused the Dangote Group of using “State backing to eliminate competition and dominate entire sectors (cement, sugar, flour, and now petroleum products)” , warning that the company “boasts already of its rooting in the power structure and preparedness to continue using it against the Unions.”

Yet, from another perspective, NUPENG itself stands accused of operating as a cartel—a different form of monopoly that controls access to the nation’s fuel supply chain. With the ability to paralyze the country through strikes or blockades, the union wields tremendous power over the Nigerian economy. The recent dispute cast a dark shadow over the Dangote Petroleum Refinery, a $20 billion project meant to end fuel importation and stabilise the energy market. The fear that “NUPENG’s extortion machinery” could hijack Dangote’s planned 10,000-strong truck fleet represents an existential threat to this critical national infrastructure.

This double monopoly—corporate power on one side, union control on the other—creates an impossible situation for Nigeria, where the nation’s economic security is caught between two competing centers of unaccountable power. The ordinary Nigerian citizen becomes collateral damage in this battle of behemoths, facing either exploitative labor conditions or fuel scarcity and price hikes, with no third option.

5 A Path Forward: The Imperative of Radical Transparency and Reform

5.1 A Blueprint for Trade Union Renewal

The crisis demands nothing less than a comprehensive overhaul of trade union governance in Nigeria. This reform agenda must include:

· Mandatory Financial Disclosure: All trade unions should be required to publish independently audited financial statements annually, with detailed breakdowns of revenue sources—including all levies and dues—and expenditure categories. The current opacity surrounding NUPENG’s finances, where allegations of N22 billion in annual collections remain unverified, is unacceptable for organizations with such significant public impact.
· Democratic Governance Safeguards: Union constitutions should guarantee regular, contested elections conducted by independent electoral bodies. The allegations of entrenched leadership ignoring member concerns in NUPENG highlight the critical need for internal democracy mechanisms that ensure accountability to members rather than just preservation of power.
· Regulatory Strengthening: The Registrar of Trade Unions requires enhanced powers and resources to properly oversee union activities, investigate complaints, and enforce compliance with democratic and financial standards. The current framework seems to focus more on registration than ongoing oversight .
· Anti-Corruption Integration: Labour unions must be formally included in Nigeria’s National Anti-Corruption Strategy implementation . The current strategy has shown “limited completion” of key milestones , but its expansion to specifically address union governance could help address the systemic issues plaguing organizations like NUPENG.

5.2 Beyond Union Reform: Rebuilding a Social Contract

Ultimately, the crisis of trade unionism in Nigeria reflects a broader breakdown of the social contract between all sectors of society—government, business, labour, and citizens. A piecemeal approach that targets NUPENG alone while ignoring the ecosystem in which it operates will inevitably fail. Meaningful change requires:

· Corporate Accountability: The serious allegations of union-busting and worker exploitation against powerful corporations must be addressed with equal vigor. The right to unionize is fundamental, and its suppression undermines the very possibility of balanced labour relations.
· Government Responsibility: The state must move beyond crisis intervention in labour disputes to creating a framework that prevents such crises from emerging. This includes ensuring credible elections , protecting fundamental rights, and enforcing laws consistently without fear or favor.
· Citizen Empowerment: Nigerians need access to accurate information and mechanisms to hold all powerful institutions—unions, corporations, and government—accountable. The current situation, where citizens are reduced to passive spectators or victims in battles between powerful interests, is unsustainable.

6 A Nation at a Crossroads

The turmoil within NUPENG represents more than just the troubles of a single union—it serves as a microcosm of Nigeria’s broader governance crisis. The allegations of corruption, the counter-accusations of union-busting, the lack of transparency, and the exploitation of vulnerable workers all mirror pathologies evident across Nigerian society.

The coming days will prove decisive. If NUPENG continues on its current path without meaningful reform, it risks becoming exactly what its critics allege: a cartel that happens to operate in labour relations rather than a genuine representative of workers. If the government fails to create conditions for genuine reform—of unions, corporate practices, and its own institutions—it condemns the nation to endless cycles of crisis and confrontation.

The words of the Nigeria Labour Congress take on a prophetic quality in this context: “The attack on NUPENG is an attack on us all. The NLC without equivocation states that Nigerian workers are not slaves and cannot be serially abused without consequences” . True reform must ensure that workers are not slaves to corporate power, to union corruption, or to government neglect.

The future of Nigerian trade unionism hangs in the balance. The demise of NUPENG in its current form may not be a tragedy but a necessary cleansing—if it makes space for a new model of worker representation that is transparent, democratic, and truly dedicated to the welfare of its members and the nation. The storm is indeed gathering, and it may yet wash away the rot that has plagued one of Nigeria’s most important labour institutions—if we have the courage to face the thunder.

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