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Union Fees Blamed for Rising Fuel Costs

Aliko Dangote, the prominent businessman and head of Dangote Group, has pointed fingers at the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) for driving up fuel prices through hefty truck loading fees.

Speaking on September 21, 2025, Dangote revealed that the union reportedly demands around N48,000 to N50,000 per truck at his refinery, adding to other costs that push the total to N80,000 or more. These extra expenses, he argued, trickle down to consumers, worsening the already high pump prices amid Nigeria’s economic strains.

Dangote labeled the practices as harmful rent-seeking that stifles progress in the energy sector. He stressed the importance of voluntary union membership, drawing a parallel to personal choices like faith. “Nobody should force anyone into a union—it’s a personal decision,” he said.

To counter such disruptions, Dangote announced plans to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks by late 2025, aiming for self-reliant distribution and avoiding reliance on external haulers.

Also see: China-Nigeria Trade Surges to $15.48 Billion in Seven Months

When reached for comment, NUPENG’s President, Williams Akporeha, sidestepped direct confirmation of the N50,000 fee, quipping, “N50k now? No more N1 per litre?” This echoes earlier online rumors of a per-litre levy, which Akporeha dismissed as unproven opinions. Recent clashes, including depot shutdowns and a brief refinery blockade in August 2025, prompted government mediation and a court order against further union actions.

Energy law expert Professor Dayo Ayoade questioned the fees’ legality, asking if NUPENG is overstepping into taxation. He praised Dangote’s fleet strategy as a push for fair competition. Analysts warn that without regulation, these hidden costs could hinder fuel stability and the shift to cleaner alternatives like CNG.

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