In a dramatic twist that has sent shockwaves across the country, the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) has ordered the immediate shutdown of fuel depots nationwide, crippling petroleum distribution just as negotiations between the Federal Government and Dangote Group continue to drag without resolution. The move, which took effect in the early hours of today, has already triggered panic buying in major cities, with motorists rushing to filling stations in fear of an impending scarcity that could further worsen the economic strain on Nigerians.
Reports from across Lagos, Abuja, Port Harcourt, Kano, and other major cities indicate long queues at filling stations, with some outlets shutting their gates after running out of stock within hours. The situation is compounded by rumors that independent marketers may also join the strike in solidarity with NUPENG, raising fears of a total collapse of fuel supply in the coming days.
According to reliable sources within NUPENG, the decision to shut down depots was reached after several rounds of dialogue between the Federal Government and Aliko Dangote’s conglomerate failed to produce concrete commitments on critical issues concerning pricing, supply agreements, and regulatory bottlenecks. NUPENG, which represents the interests of workers in the oil and gas sector, accused both the government and Dangote of playing politics with the livelihoods of Nigerians, insisting that it will not reopen depots until a firm resolution is reached.
The core of the crisis stems from disagreements over the pricing template for refined petroleum products and concerns about monopoly in the sector following the operations of the multi-billion-dollar Dangote Refinery. While the Federal Government has repeatedly assured citizens that the refinery would stabilize the market and end the country’s decades-long dependence on imported refined fuel, NUPENG and other stakeholders have raised concerns about alleged unfavorable agreements that could put workers, marketers, and ordinary Nigerians at risk of exploitation.
The Dangote Refinery, inaugurated amid much fanfare and celebrated as a game-changer for Nigeria’s energy sector, has struggled to fully integrate into the supply chain due to lingering disputes over pricing frameworks, government subsidies, and supply contracts. Insiders reveal that talks between the Presidency, the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and representatives of Dangote have been tense, with neither side willing to yield ground on key demands.
Meanwhile, the shutdown by NUPENG has already begun to ripple through the economy. In Lagos, transport fares surged by as much as 40 percent within hours as commercial drivers grappled with rising pump prices. In Abuja, several filling stations were selling fuel above the official pump price, while black-market hawkers openly traded fuel at nearly double the rate. Businesses that rely heavily on generators for electricity are also bracing for higher costs, with small-scale enterprises warning that the situation could cripple their operations if not resolved quickly.
The Federal Government, in a late-night statement, urged Nigerians to remain calm, assuring the public that negotiations are ongoing and that a breakthrough is imminent. The Minister of State for Petroleum described NUPENG’s action as “premature and unnecessary,” warning that shutting down depots at a time of sensitive economic recovery could push the country into deeper crisis. He appealed to union leaders to reopen the depots while talks continue, promising that workers’ concerns would be addressed.
But NUPENG appears resolute. A top union official who spoke on condition of anonymity said the government has a history of making empty promises without follow-through, insisting that this time, action must precede words. “We have been at the table for weeks, yet there is no clear direction. Our members are frustrated, and Nigerians are the ones suffering. If we don’t take a firm stand now, nothing will change. We will not back down until there is a binding agreement,” the official declared.
The Dangote Group, on its part, has remained largely silent on the matter, though insiders say the company feels unfairly targeted in a dispute that should be addressed by the government. According to them, Dangote has fulfilled all regulatory requirements and is operating within global best practices, but political interests and rivalries within the oil sector are slowing down progress.
Economic analysts have described the development as potentially catastrophic if prolonged. With inflation already at record highs and the naira battling severe depreciation, a nationwide fuel crisis could push the cost of living further out of reach for millions of households. The manufacturing sector, already hampered by high energy costs, may face shutdowns if fuel scarcity persists. Transportation, food supply chains, and even aviation are expected to be heavily affected.
As news of the shutdown spreads, social media has erupted with heated debates, with many Nigerians accusing the government of failing to act decisively to prevent the crisis. Others have directed their anger at Dangote, alleging that the refinery’s entry into the market has been shrouded in secrecy and monopoly fears. In contrast, some commentators argue that the union’s strike is ill-timed, noting that ordinary Nigerians will bear the brunt of the standoff.
Already, governors from several states have begun to weigh in, with some calling for urgent intervention by President Bola Tinubu to prevent a total collapse of the fuel distribution system. Civil society groups have also warned that the crisis could trigger mass protests if not resolved swiftly, especially given the public’s growing frustration over rising costs of living, power shortages, and unemployment.
For now, the streets remain tense as Nigerians anxiously monitor developments. While government officials express optimism about reaching a compromise, NUPENG’s hardened stance and the unresolved issues at the heart of the talks suggest that the crisis may not end soon. With depots sealed, tankers grounded, and negotiations dragging, the specter of fuel scarcity looms large over a nation already battling economic headwinds.
The next few days will be critical. If the Federal Government and Dangote fail to strike a workable deal, the shutdown could escalate into a nationwide paralysis of the oil sector, with devastating consequences for every facet of the Nigerian economy. All eyes are now on Abuja, where talks are expected to continue behind closed doors. But until an agreement is reached and depots reopened, Nigerians may have no choice but to brace for another painful round of fuel scarcity—one that could test the patience of a nation already stretched thin.