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NUPENG suspends strike as Dangote accepts union’s demands

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The Nigeria Union of Petroleum and Natural Gas Workers suspended its two-day strike on Tuesday following a meeting with officials of the Federal Government and the Dangote Group, amid fuel supply disruptions in different locations across the country.

The National President of NUPENG, Williams Akporeha, confirmed this to one of our correspondents. After the failure of the Monday meeting, the Ministry of Labour summoned another meeting on Tuesday with more stakeholders in attendance.

Those in attendance included representatives of the Dangote Group led by Sayyu Dantata, officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and others. An agreement signed after the meeting showed that the Dangote refinery agreed to unionise its members.

“Following the threat to embark on industrial action by the Nigeria Union of Petroleum and Natural Gas Workers over the refusal of the management of the Dangote Refinery and Petrochemical Limited to allow their employees to be unionised by registered labour unions, a conciliation meeting was held at the instance of the Minister of Labour and Employment, and it was revealed in the course of the meeting that:

“The management agreed with this fact and responded that they are not averse to the unionisation of their employees by labour unions in tandem with the provisions of the extant labour laws. After exhaustive deliberations, the following resolutions were reached by both parties: That since workers’ unionisation is a right in line with the provisions of the extant laws, the management of Dangote Refinery and Petrochemicals agreed to the unionisation of employees of Dangote Refinery and the unionisation of employees of Petrochemicals who are willing to unionise.

“That the process of unionisation shall commence immediately and be completed within two weeks (9th-22nd September, 2025), and it was agreed that the employer will not set up any other union.

Arising from the strike notice, no worker or employee of Dangote Refinery and Petrochemical will be victimised,” the agreement read.

Parties are to revert to the Minister of Labour a week after the conclusion of the engagement. Based on the MoU, NUPENG agreed to suspend the industrial action with immediate effect.

The MoU was signed by Dangote’s Sayyu Dantata; NUPENG’s Akporeha and his Secretary, Afolabi Olawale; an official of the NMDPRA, OK Ukoha; a director of the labour ministry, Amos Falonipe; and representatives of the Nigerian Labour Congress and the Trade Union Congress.

However, as the strike entered the second day before its suspension on Tuesday, Nigerians in different parts of the country felt the impact as many filling stations were shut. NUPENG had on Friday declared its intention to stop loading fuel this week over allegations that the Dangote refinery planned to ban the drivers recruited for its 4,000 trucks from joining the union.

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Recall that the Dangote refinery planned to start direct fuel distribution from August 15 with its 4,000 Compressed Natural Gas-powered trucks. But the scheme was delayed due to a lack of enough ships to bring the trucks to Nigeria. While the refinery is still receiving the trucks as they arrive in Nigeria, the Petroleum Tanker Drivers branch of NUPENG accused the refinery management of anti-labour practices for not allowing its drivers to join the union.

They also accused Alhaji Aliko Dangote of plans to render them useless with his direct fuel distribution scheme. NUPENG President Akporeha on Sunday confirmed that the Federal Government had reached out to the union on the need to avert the strike, but he refused to call off the strike.

Following the inability of the Federal Government to broker peace between NUPENG and the Dangote refinery at the Monday conciliation meeting organised by the Minister of Labour and Employment, Muhammad Dingyadi, the union continued the strike, shutting down depots and some filling stations. The suspension of the strike later in the evening was a relief in areas where its impact was felt.

In states like Cross River and Kaduna, many filling stations were under lock and key on Tuesday, while some adjusted pump prices in Sokoto and Enugu. It was also gathered that vehicle owners engaged in panic buying in parts of Lagos and Ogun States.

The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, told The PUNCH that “PETROAN members joined the strike on Tuesday, as the Monday meeting with the labour minister yielded no result.” Gillis-Harry, who described the strike as a looming danger, however, appreciated the Federal Government for its prompt intervention.

Fuel supply disruptions

In Calabar, the capital of Cross River, commuters and residents lamented the hike in fares following the fuel scarcity in the state on Tuesday. Commuters said that the fuel scarcity triggered a hike in transport fares, leaving many commuters stranded and frustrated.

Explaining how the fuel scarcity affected transport costs, a resident, Mary Archibong, said, “The fuel scarcity has affected everyone in one way or another. Before now, from Watt to Calabar Roundabout, it used to be N300, but now it’s N500. It is very bad because the drivers are now buying from the black market at N1,500 per litre,” she said.

It was learnt commercial activities in Kaduna were on Tuesday crippled as the now-suspended strike forced major filling stations in the metropolis to shut down their operations. A visit to several parts of the state capital revealed that virtually all major filling stations had locked their gates, leaving motorists and residents stranded.

At the Barnawa area in Kaduna South Local Government Area, Future View Filling Station and the NNPC Mega Filling Station along Aliyu Makama Road were under lock and key. Residents expressed frustration as the strike entered its first day. “I drove around for over an hour looking for fuel. Nowhere is selling,” lamented Musa Lawal, a commercial tricycle operator.

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The situation was the same across other parts of the city. At the busy Station Roundabout, the AA Rano and Shema filling stations remained shut, while at the Ahmadu Bello Stadium Roundabout, Total, MRS, and the NNPC Mega Station all closed shop. The stations were deserted.

Similarly, the Total and Mobil filling stations along Ahmadu Bello Way and Muhammadu Buhari Way (formerly WAFF Road) were not dispensing fuel when our correspondent visited.

Some motorists who managed to find fuel at smaller independent stations complained of arbitrary price hikes. A motorist, Sani Ibrahim, told The PUNCH that he bought fuel at N950 per litre, up from N860 the previous day.

In Enugu, commuters were stranded on Tuesday due to fuel scarcity. Many petrol stations closed shops at noon. Motorists were unable to access petrol, so they were left idling on major roads, while some resorted to black-market vendors charging up to N1,500 per litre.

It was observed that busy roads such as Ogui Junction, Abakpa Junction, IMT, Emene, and Holy Ghost were unusually scanty on Tuesday, with few vehicles moving around to pick passengers. The strike led to immediate fare hikes . Buses raised fares from N300 to N500 from Garriki to New Market.

The PUNCH reports that there were long queues in many filling stations across Anambra State on Tuesday, resulting in the sharp increase in transportation fares for both interstate and intrastate movement. The queues built up in some parts of Onitsha, Awka and Nnewi, as only a few filling stations were seen dispensing the product.

As a result, commuters had a hectic time going to their various destinations as commercial transport operators hiked transport fares by over 50 per cent. Many motorists hiked their fares as a result of the development. It was observed that a journey of N200 cost as much as N400, while that of N300 became N600.

In Gombe, fuel prices climbed to between N910 and N1,000 per litre. At a filling station along Gombe-Bauchi Road, an attendant, who pleaded anonymity, confirmed the increment, saying marketers were reacting to “uncertain developments in the sector.”

He added, “We are still selling because supply is steady, but once depots are locked, the price will go up further. That is why our managers adjusted the pump price early.”  Meanwhile, there was not much impact felt in states like Jos, Kano, Zamfara and Ilorin. There was a marginal price increase in Sokoto State.

Speaking on national television earlier on Tuesday, the NUPENG boss, Akporeha, said the union had no choice but to press on with industrial action after Dangote’s management rejected recognised oil and gas unions and allegedly claimed to have a separate association for its workers.

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Akporeha alleged that the representative of the Dangote refinery, Dantata, walked out of the Monday meeting when the labour minister told him that the Dangote refinery could not have a separate union for its workforce. The labour leader alleged that the Dangote refinery created an alternative drivers’ association to weaken NUPENG, describing the move as illegal.

He insisted that the law only recognised existing unions such as NUPENG, PENGASSAN and others in the oil and gas sector. While clarifying that strike action was a legitimate industrial tool, Akporeha stressed that dialogue remained open.

“Strikes are part of industrial relations. But under my leadership, it has never been the first option, but no employer has the right to enslave workers,” he said. He dismissed allegations that NUPENG was attempting to sabotage the refinery or frustrate local production.

“Everybody wants Dangote to succeed, including NUPENG. But he must play by the rules. Nigeria cannot afford investors who act like dictators or slave drivers,” he said. On Monday, depots and filling stations were also closed by NUPENG members. The Aradel refinery in Obele, Port Harcourt, was shut. The Kwale Hydrocarbon facility in Delta State was shut.

Checks by one of our correspondents confirmed that activities at petroleum depots were paralysed across the country. NUPENG officials visited the depots on Monday and the early hours of Tuesday to enforce compliance. In various states across the country, especially those in Lagos and Warri, Delta State, drivers parked their trucks to wait for the next directive as far as fuel lifting was concerned.

Our correspondent reports that NUPENG officials shut down some depots to prevent the movement of trucks. The National President of NUPENG, Williams Akporeha, told our correspondent that there was “100 per cent compliance across the nation.” Some members of the union accused Dangote and MRS of having plans to take over their jobs with the recruitment of new drivers.

At Aiteo, RainOil, Shell+, First Royal, MAO, Hensmor, One Terminals, Africa Terminals, Integrated Oil and Gas, and other depots in Lagos, the gates were locked as workers stayed away to comply with the strike action. Also, A&E, Matrix, Parker AY Shafa, and other depots in Warri joined the strike on Monday. The PUNCH reports that with the suspension of the industrial action, loading of fuel is expected to resume on Wednesday.

(Additional reports by: Raphael Ede, Ikenna Obianeri, Chima Azubuike, James Abraham, Hussaini Ibrahim, Maiharaji Altine, Animasahun Salman, and Dare Akogun)

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NNPC serviced $3bn loan with N991bn crude – Report

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The Nigerian National Petroleum Company Limited has serviced part of its $3bn forward-sale loan from the African Export-Import Bank with crude oil worth N991bn in 2024, according to its 2024 financial statement report. The repayment was tied to Project Gazelle, a forward crude oil supply agreement signed in 2023.

On August 17, 2023, The PUNCH reported that the NNPC announced it had secured a $3.3bn emergency loan to repay crude oil obligations from Afreximbank. It explained that the loan would be used by the oil company to support the Federal Government in stabilising Nigeria’s exchange rate.

“The NNPC Ltd. and AFREXIM bank have jointly signed a commitment letter and Termsheet for an emergency $3bn crude oil repayment loan,” NNPC said in a statement.

“The signing, which took place today at the bank’s headquarters in Cairo, Egypt, will provide some immediate disbursement that will enable the NNPC Ltd. to support the Federal Government in its ongoing fiscal and monetary policy reforms aimed at stabilising the exchange rate market,” it added.

Under the deal, NNPC committed to deliver 90,000 barrels of crude oil per day from Production Sharing Contract assets to back a funding facility. According to the 2023 financial statement, a drawdown of $2.25bn had already been achieved by 31st December 2023, with principal repayment scheduled to begin in June 2024.

The funding carried an interest rate of 3-month LIBOR plus 6.5 per cent, with a 6 per cent margin and 0.5 per cent liquidity premium.

According to the 2024 financial statement, the drawdown on the facility had reached N4.9tn out of a total available N5.1tn, while N991bn worth of crude oil had been lifted in repayment, leaving an outstanding balance of N3.8tn at the end of 2024.

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The report read, “In December 2023, NNPC Limited entered into a forward sale agreement with Project Gazelle Funding Limited to supply 90,000 bbl. of crude oil per day from Production Sharing Contract Assets for the settlement of a 5-year N2.7tn funding.

“The funding was utilised by the company to finance an advance payment of future taxes and royalty obligations due to the federation on PSC assets managed by the Company on behalf of the Federation.

“As at 31st December 2024, a drawdown of N4.9tn has been achieved from the initial facility of N5.1tn. The interest rate for the facility is 3-month SOFA plus 6.5 per cent while the margin and Liquidity Premium of 0.5 per cent respectively. A total value of Crude Oil worth N991bn has been lifted with a balance of N3.8tn as at 31st December 2024.”

The repayment was made between June and December 2024. However, NNPC did not disclose the identity of the offtakers or exact delivery volumes fulfilled in 2024.

The Project Gazelle arrangement has become one of NNPC’s most significant forward-sale financing vehicles, following a trend of oil-backed loans designed to shore up government revenues, refinance legacy debts, and meet budgetary obligations amid limited fiscal buffers.

The PUNCH earlier reported that the NNPC Ltd is burdened with crude-backed loan obligations estimated at N8.07tn.

The liabilities stretch across multiple forward-sale and project-financing arrangements that are expected to be serviced through substantial crude oil and gas deliveries. The commitments have become a major pillar of NNPCL’s funding structure following years of fiscal pressure, volatile crude production, and declining upstream investment.

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Several of the facilities were used to refinance older debts, fund refinery rehabilitation, support cash flow, and meet government revenue obligations.

When assessed together, the company’s major crude-for-loan facilities—Eagle Export Funding (21,000 bpd), Project Yield (67,000 bpd), Project Leopard (35,000 bpd), and Project Gazelle (90,000 bpd)—represent a combined commitment of 213,000 barrels per day, in addition to separate gas-delivery obligations under the NLNG arrangement.

The volume equates to a sizeable share of Nigeria’s daily crude output, underscoring the long-term implications of these arrangements for government revenue, export allocation, and operational flexibility.

The PUNCH also reported that Nigeria’s gross profit from crude oil and gas sales plunged by N824.66bn in 2024 despite a rebound in oil production, according to figures from the Budget Implementation Report for the fourth quarter of 2024 released by the Budget Office of the Federation.

Data from the report revealed that gross profit from crude and gas sales fell to N1.08tn during the year, from N1.90tn in 2023, representing a 43.32 per cent decline.

The Chief Executive Officer of AHA Strategies and oil and gas expert, Mr Ademola Adigun, earlier linked Nigeria’s declining oil earnings to opaque crude-for-cash agreements and undisclosed loan repayments that have tied up part of the country’s crude output.

He said some of the government’s oil barrels were already committed to debt settlements and forward-sale contracts, reducing the actual volume that brought fresh revenue into the Federation Account.

Adigun said, “Some of our crude is already tied up in loan agreements. The problem is that Nigeria doesn’t know the full details of these transactions because there’s little transparency around them.”

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He explained that several crude-backed projects, such as Project Gazelle, were carried out without proper public disclosure or parliamentary scrutiny.

He added that the Nigeria Extractive Industries Transparency Initiative should strengthen its audits to determine how much of the country’s crude is being used for debt repayment or swap transactions.

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Yuletide: Dangote assures Nigerians of stable fuel supply

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Chairman of Dangote Group, Aliko Dangote, on Friday said Nigerians will no longer experience fuel queues during the Christmas and New Year seasons.

Briefing State House correspondents after meeting with President Bola Tinubu at the Aso Rock Villa, Abuja, Dangote said his refinery has formally notified the Nigerian Midstream and Downstream Petroleum Regulatory Authority of its readiness to deliver 50 million litres of Premium Motor Spirit daily, far above national consumption.

He said, “Historically, Nigeria has battled fuel queues since 1972. For the first time, we are eliminating those queues, not through imports but by producing locally.

“Even when we were servicing the refinery, there were no queues. I can assure you that queues are now history.”

Dangote stated that the refinery will soon produce surplus volumes, adding that by February, it will supply 15–20 million litres more than Nigeria needs.

This, he argued, will allow exports to neighbouring countries, reducing the incidence of fuel scarcity across West Africa.

The industrialist also disclosed that domestic manufacturers, especially in the plastics industry, will now enjoy reliable access to locally produced feedstock, ending years of reliance on imports estimated at $400m annually.

Dangote also announced an expansion programme that will raise refinery capacity to 1.4 million barrels per day by 2028, surpassing India’s Reliance refinery, the world’s largest, at 1.25 million barrels per day.

“We have already signed the necessary agreements.

“Construction piling begins before the end of January, and we will deliver on schedule,” he announced.

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He revealed plans to scale up the company’s urea production to 12 million tonnes annually, positioning Nigeria to overtake Russia and Qatar as the world’s leading producer.

“Our goal is to use our fertilizer company to supply the entire African continent,” Dangote said.

Dangote attributed the recent drop in petrol and diesel prices to increased competition and reduced smuggling.

“Prices are going down because we must compete with imports.

“Luckily, smuggling has dropped significantly, though not completely,” he explained.

He noted that the refinery business is a long-term national investment, saying, “We’re not here to recover $20 billion overnight.

“The legacy I want to leave is that whatever Nigerians need, fuel, fertiliser, power, we will be part of delivering it.”

Dangote further highlighted logistics constraints affecting Nigeria’s solid minerals sector, particularly the congestion of major ports.

“Apapa is full. Tin Can is full. Lekki is mainly for containers.

“You cannot export coal or copper if you have nowhere to ship from,” he noted.

To curb this, he explained that the Group is developing what would become West Africa’s largest deep-sea port at Olokola, expected to be completed in two to two-and-a-half years.

The Kano-born businessman expressed support for the Tinubu administration’s naira-for-crude initiative, describing it as a patriotic move to strengthen the economy, although he acknowledged pushback from international oil companies.

According to him, “It’s a teething problem, but it will be resolved, either through legislation or administrative action.”

On concerns about global competition, Dangote maintained that the refinery will thrive.

He said, “What we want is to make Nigeria the refining hub of Africa. All African countries import fuel. We want what we consume to be produced here.”

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He also endorsed the government’s Nigeria-first industrial policy and urged wealthy Nigerians to channel resources into productive investment rather than luxury spending.

“If you have money for a private jet, invest in industries and create jobs,” he stated, adding that domestic investors must drive industrialisation to attract foreign capital.

Dangote acknowledged past hurdles, policy instability, smuggling, and factory closures, but expressed optimism that the country is now on a stable path toward sustainable industrial growth.

“Domestic investors must lead the way. Once they do, foreign investors will follow.

“Nobody advertises a good restaurant; when the food is good, word spreads,” he explained.

He described his meeting with President Tinubu as a routine consultation on the economy and business environment, noting that it was “a very fruitful meeting.”

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OPay secures double honours at Tech Innovation Awards

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Nigeria’s premier financial technology company, OPay, has been named Fintech Company of the Year and Best Fintech in Cybersecurity at the ninth Tech Innovation Awards.

In a statement on Thursday, OPay said the award was in recognition of its innovation and security leadership.

The awards ceremony, held on 29 November 2025, in Lagos, convened top organisations and industry leaders who shape the country’s digital landscape.

Speaking after receiving the honours, Chief Compliance Officer at OPay, Chukwudinma Okafor, said, “These awards are a testament to our relentless pursuit of excellence in fintech and our unwavering commitment to user security. Every innovation we introduce, from secure payments to advanced compliance measures, is designed to give millions of Nigerians the confidence to transact safely. This recognition belongs as much to our dedicated team as it does to the users who inspire us to continually raise the bar for excellence in fintech and cybersecurity.”

Highlighting OPay’s proactive approach to security, Chief Commercial Officer Elizabeth Wang said, “We are incredibly proud to receive both Fintech Company of the Year and Best Fintech in Cybersecurity at the 9th Tech Innovation Awards, two recognitions that highlight our dedication to security and user protection. At OPay, we believe that equipping users with the knowledge and advanced tools is essential to building trust and promoting financial inclusion. This was demonstrated through our OPay Security Vote Campaign some months ago, a dynamic social media initiative that educated users on our in-app security features. The campaign has helped millions of Nigerians understand how to protect their accounts and transact safely, reinforcing that security is central to everything we do. Hence, these awards recognise not only our leadership in fintech but also our commitment to keeping every transaction secure and our customers confident in their financial journey.”

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OPay was established in 2018 as a leading financial institution in Nigeria with the mission to make financial services more inclusive through technology. The company offers a wide range of payment services, including money transfer, bill payment, card service, airtime and data purchase, and merchant payments, among others. Renowned for its fast and reliable network and strong security features that protect customers’ funds, OPay is licensed by the Central Bank of Nigeria and insured by the Nigerian Deposit Insurance Corporation with the same insurance coverage as commercial banks.

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