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NUPENG threatens to resume strike, blocks loading in Dangote Refinery

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• Refinery dismisses allegations
• Reaffirms Commitment to Labour Rights, Economic Development

The recently brokered peace by the Ministry of Labour and Employment between the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Dangote Refinery may be short-lived as NUPENG yesterday threatened to resume industrial action.
NUPENG, in an issued statement yesterday accused Dangote Refinery of negating the resolutions reached at the peace meeting.
The Union, in its statement, accused Alhaji Sayyu Aliu Dantata, the founder of MRS Holdings, of instructing all his Truck Drivers who are NUPENG-PTD members for several years to remove the Union Stickers from their trucks yesterday, and subsequently “instructed them to forcefully drive into Dangote Refinery to load.”
The statement further explained that NUPENG officials stopped the trucks entering the Dangote Refinery to load because “their trucks violated Union loading rules and regulations.” At this point, the union alleged that Dantata then invited the Navy to come over “ostensibly to crush the Union officials.”
But responding to the allegation, Dangote Petroleum Refinery, in a statement last night, dismissed recent allegations made by the NUPENG, insisting that claims of anti-labour practices, monopolistic behaviour, and planned fuel price hikes are “entirely unfounded.”
In its official response, Dangote Refinery reiterated its full support for constitutionally protected labour rights, stating that employees are free to affiliate with any recognised trade union. “Assertions that drivers are compelled to waive union rights are categorically false,” the statement said, adding that the dispute involves NUPENG’s Petrol Tanker Drivers (PTD) unit and does not implicate the refinery in any breach of rights,” the statement said.
The NUPENG statement, signed by NUPENG’s President, Akporeha Williams and General Secretary Afolabi Olawale, also accused the Dangote Refinery of working against the agreement.
The statement, titled: “Dangote Empire Negates Resolutions Reached On 9th September 2025,” issued by NUPENG yesterday, read: “This is to alert the general public and the government of the Federal Republic of Nigeria that notwithstanding the resolution reached and signed at the office of the DSS with three Ministers of the Federal Republic of Nigeria and the Deputy Director General of the DSS in attendance on the right of unionisation of the workers, Alhaji Sayyu Aliu Dantata on Wednesday, 10th September, 2025 instructed all his Truck Drivers who are NUPENG-PTD members for several years to remove the Union Stickers from their trucks yesterday.
“Today, Thursday (yesterday), 11th September, 2025, he instructed them to forcefully drive into Dangote Refinery to load and Union officials stopped them from entering the Refinery to load because their trucks violated Union loading rules and regulations.
“Alh Sayyu Aliu Dantata flew over them several times with his helicopter and then called the Navy of the Federal Republic to come over ostensibly to crush the Union officials.
“Our members are waiting for him and his agents to run them over. We call on everyone to let Alh Sayyu Aliu Dantata know that he is not bigger than the Federal Republic of Nigeria and we strongly condemn his arrogant attitude towards official institutions of this great country and blatant lack of respect for the laws of this country. We call on the Federal Government not to allow the Navy and other security agents being paid by the resources of this country to be used with impunity against the laws and people of this country. Security agents should not allow an individual to ride roughshod with impunity even while not observing terms of agreement reached in meetings in which security agents facilitated along with Ministers of the Federal Republic of Nigeria.
“We are by this statement placing all our members on red alert for the resumption of the suspended nationwide industrial action and calling on the Nigeria Labour Congress, Trade Union Congress, all Regional and Global Working people and Civil Society Organisations to rise in support and solidarity against this threat of the Capitalist world.
“His wealth cannot make him above the law”
“We assure the people and the government of the Federal Republic of Nigeria that NUPENG will continue to remain a patriotic, responsible and responsive organisation to this great country.”
According to Dangote Refinery, central to NUPENG’s allegations is the roll-out of over 4,000 CNG-powered bulk trucks, which the union claims could displace existing jobs. Dangote Group firmly refuted this, describing the initiative as a cornerstone of Nigeria’s energy transition strategy.
“The deployment of CNG-powered trucks is a strategic initiative designed to support national energy transition goals, not to displace existing jobs,” the company stated. Each truck will be operated by a six-person team, with drivers receiving salaries significantly above the national minimum wage, plus medical cover, pensions, housing allowances, and long-term access to housing loans. The company aims to have 10,000 such trucks in operation by year-end, potentially creating over 60,000 direct jobs.

Responding to accusations of monopolistic behaviour, Dangote Refinery emphasised its compliance with Nigeria’s deregulated oil sector under the supervision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The company highlighted that over 30 refinery licences have been issued to private players, with active developments by BUA, Aradel, Walter Smith, and the Edo Refinery. “While we are major industry player, our presence has revitalised the downstream sector, reopened previously dormant petrol stations and restored investor confidence,” the management said.
The statement also drew parallels with the company’s influence in the cement industry, noting that Dangote’s entry helped eliminate Nigeria’s reliance on imports and spurred the rise of other local producers.
Dangote Refinery strongly denied any plans to increase fuel prices. On the contrary, the company claims its operations have stabilised fuel availability and driven down costs. Diesel prices, for instance, have dropped by over 30% in the past year, and petrol prices in Nigeria are now reportedly lower than in oil-rich nations like Saudi Arabia and 40% cheaper than neighbouring West African countries.
The company also pointed to its N720 billion investment in CNG infrastructure as evidence of its commitment to reducing logistics costs and improving nationwide fuel distribution.
Dangote stated it maintains a cordial and cooperative relationship with all recognised trade unions, including NUPENG. It rejected accusations of walking out on recent conciliation efforts, stating that the union had not formally communicated any grievances before going public.
“We acknowledge and appreciate the intervention of the Federal Government, particularly the Ministry of Labour and Employment, and remain fully supportive of ongoing efforts to achieve a lasting resolution. We hold both the Minister, Dr Mohammed Dingyadi (Katuka Sokoto) and Mrs. Nkiruka Onyejeocha, in the highest regards, and reject any suggestion that we have acted in a manner that would undermine their involvement. The Hon. Minister granted Mallam Sayyu Dantata the permit to enable him attend to his medication,” the company said, expressing appreciation for the roles played by the Ministry of Labour and Employment and key ministers involved in mediating the dispute.
With over 570,000 direct and indirect jobs created, including through road, power, and water infrastructure projects, Dangote Refinery has positioned itself as a centre for skills development and technology transfer in Nigeria.
Reiterating its commitment to responsible business, Dangote Group concluded by dismissing the monopoly allegations as “recycled falsehoods”, urging other private sector players to follow its lead in investing in Nigeria’s economic future.
“At Dangote, we have chosen to invest boldly in Nigeria’s future and we will continue to do so. It is time others follow suit.”

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Energy

8,500 transmission capacity: Low demand stalls generation of 3,500MW

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• Nigeria conducts grid synchronisation test connecting 15 countries for four hours

The Ministry of Power yesterday said despite the availability of 8,500MW transmission capacity in the Nigerian Electricity Supply Industry (NESI), low demand from the Distribution Companies (DisCos) has limited generation to 5,000MW, stalling 3,500MW.
As of July 17, 2025, the wheeling capacity was 5,500MW.
But the ministry disclosed its recent wheeling capacity in Abuja during a media briefing where it announced that Nigeria successfully conducted a grid synchronization test with 15 West African countries for four hours on November 8, 2025.
“Today, the minimum grid capacity we can even communicate is 8,500MW of capacity. If our generation reaches 8,000 MW today, the grid can comfortably and conveniently transmit it,” Adelabu said.
Besides, the Nigerian Independent System Operator (NISO), Market Operation Executive Director, Dr. Edmund Eje, explained that since electricity cannot be stored, the industry only generates energy based on demand.
His words: “The amount of energy generated is equal to the amount of energy that will be transmitted, and it is also equal to the amount of energy that is demanded by the distribution companies. It is simultaneously consumed.
“You don’t stall energy anywhere. The transmission capacity can carry 8,500MW, but it can only carry what can be consumed. Generators will not generate more than what will be consumed at the same time.”
On synchronization, he said the feat of successful synchronization will not affect the allocation of energy for domestic consumption.
Eje said that although there is a regulation that Nigeria allocates 600MW for bilateral trade, production constraints presently limit it to 360MW.
Adelabu, however, described the synchronization test success as a step towards the elimination of grid collapse from the industry, noting it means that there is confidence that the system is now resilient.
He described it as a landmark development in the evolution of West Africa’s electricity architecture.
He confirmed that on 8th November 2025, Nigeria successfully conducted a grid synchronisation test connecting the national electricity grid with the interconnected West African Power Pool (WAPP) system.
According to him, the exercise represents the first time in history that Nigeria has operated in a unified, stable, and fully harmonised configuration with the rest of the sub-region.
He clarified that while it is not yet a permanent synchronisation, the successful test clearly demonstrates that regional technical alignment is feasible and marks a major step toward eventual full integration.
Adelabu further noted that the synchronisation exercise, conducted between 05:04 a.m. and 09:04 a.m., involved the Nigerian grid which includes Niger Republic and parts of Benin and Togo and the rest of West Africa’s interconnected systems covering Ghana, Côte d’Ivoire, Burkina Faso, Liberia, Sierra Leone, Guinea, Senegal, The Gambia, Guinea Bissau, and Mali.
He said for four uninterrupted hours, power flowed seamlessly across national borders, operating at a single stable frequency and proving that West Africa is now technically capable of functioning as a unified power bloc.
He said the achievement ranks among the most significant milestones in the history of WAPP.
He said the test marks the first successful large-scale synchronisation attempt since 2007, when a short-lived trial lasted only seven minutes before failing.
Adelabu said Nigeria has made history with the successful synchronization of the national grid with the West African Power Pool interconnected system.
For four unbroken hours, according to him, electricity flowed from Nigeria and Niger into the entire West African sub-region covering Benin, Togo, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, Senegal, Mali, The Gambia, and Guinea-Bissau operating at a single, stabilized frequency.
Earlier at the NISO Maiden Stakeholders’ Engagement, the Managing Director, Engr. Abdul Mohammed said the milestone recorded with the synchronization milestone is more than a technical success, since it positions Nigeria as a regional power hub; opens new avenues for electricity trading; unlocks foreign exchange potential; and reinforces investor confidence in the emerging Nigerian electricity market.
According to him, a resilient electricity market requires more than engineering; it requires relationships.
He said it requires trust among service providers, trust between the market and regulators, trust between the government and operators, and, above all, trust from the Nigerian people.

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Energy

Brent rises 1.32% to $65 as drone strike halts 260,000bpd Russian refinery

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By Grace Edet

Crude oil prices edged higher on Tuesday after a Ukrainian drone strike knocked out one of Russia’s largest refineries, disrupting 260,000 barrels per day (bpd) of processing capacity and raising fresh concerns over global supply stability as winter demand builds.
Brent crude was up 1.32 per cent at $65.05 per barrel at 9:00 WAT, with analysts warning that the outage could trigger further price increases in the coming days.
The Ryazan refinery, Russia’s fourth-largest and operated by Rosneft, has now been hit twice in less than a month as Ukraine escalates its long-range strike campaign. The latest attack halted the plant’s main crude distillation unit, which accounts for roughly 5 per y of Russia’s total refining capacity.
Industry sources told reporters that the refinery will remain shut until at least December 1, adding that “no product deliveries are expected before then,” while several secondary units have also been idled.

Prices Mixed Across the Energy Market

While Brent gained, WTI held steady at $60.90 per barrel, showing no change. Murban crude ticked up by 1.06 per cent to $66.46, whereas natural gas slipped 0.16 per cent to $4.368. Analysts say the muted price response masks rising anxiety beneath the surface.
“Market sentiment has turned cautious. If these outages persist or Moscow’s infrastructure comes under renewed fire, the supply picture could tighten very quickly,” an energy expert, Mustapha Shuaid said.

 

Winter Demand Meets Heightened Geopolitical Risk

The attack comes at a sensitive period, with temperatures dropping across Europe and Asia. Energy markets typically enter a high-demand phase from late November, making geopolitical disruptions more consequential.
Ukraine’s strategy has increasingly shifted toward high-impact targets. According to the Centre for European Policy Analysis, Kyiv is now focusing on “high-value refinery equipment like cracking units — assets that are harder to replace and more disruptive when damaged.”
Recent strikes have also hit terminals and export routes, including the strategic Novorossiysk port on the Black Sea.

Market Braces for Upside Risk

Although front-month prices remain relatively stable, traders say the underlying risk of a significant price upturn is rising. The outage at Ryazan, combined with the threat of additional strikes, could squeeze Russian product exports and rattle global supply chains.
“The next few weeks will be pivotal. Any escalation could be enough to disrupt balances and trigger a price rally, with spillover inflation risks for energy-dependent economies,” another analyst, Akin Owolabi told TheTrustNews.com.
With the Ryazan plant offline and Russia’s refining network increasingly exposed, the oil market enters the winter season on a fragile footing.

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Energy

Diesel falls to ₦979/L in Lagos

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By Grace Edet

Diesel prices in Lagos have dropped below ₦1,000 per litre for the first time in months, offering rare relief to transport operators, manufacturers and SMEs.

Market checks on Tuesday showed rates as low as ₦979 per litre at Mobil Idowu Egba, ₦980 at NNPC Retail Igando and ₦995 at Petrocam Isheri, driven by stronger domestic supply and heightened competition among retailers.

But fresh cost indicators suggest the drop may be short-lived. New data from the Major Energy Marketers Association of Nigeria (MEMAN) shows diesel landing cost has climbed to ₦980.28 per litre, signalling pressure on retailers and raising the likelihood of a price rebound.

According to market analysts, the rising landing cost is being driven by firmer international prices, higher cargo premiums and renewed bulk purchases by major distributors seeking to replenish stock.

They warn that the current sub-₦1,000 pump prices do not reflect the cost realities facing importers.

Foreign exchange volatility is compounding the pressure. The naira traded between ₦1,430 and ₦1,450 to the dollar over the past week, creating uncertainty for fuel traders and affecting forward pricing.

New coastal pricing formulas tied to Platts benchmarks are also shaping expectations for higher replacement costs.

Analysts note that Dangote Refinery’s lack of any announced price reduction is another sign that the current relief may not last. Market behaviour suggests wholesalers may soon begin building inventories in anticipation of upward adjustments.

“Diesel may have dipped below ₦1,000, but all cost indicators point to a likely rebound. Rising landing costs and FX pressure will inevitably filter through the supply chain,” a Godfrey Olatunde, a Lagos-based energy analyst told TheTrustNews.com.

With cost drivers now trending upward, stakeholders warn that the modest price drop recorded this week may be temporary as the market prepares for another adjustment.

 

 

 

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