MEMORANDUM PRESENTED TO THE HOUSE OF REPRESENTATIVES COMMITTEE ON PETROLEUM RESOURCES (DOWNSTREAM) AT THE ANNUAL DOWNSTREAM PETROLEUM WEEK CONFERENCE BY NUPENG GENERAL SECRETARY, COMRADE AFOLABI OLAWALE
Venue: National Assembly Complex, Abuja
Date: 14th October, 2025
1.0 INTRODUCTION: THE ROLE AND LEGACY OF TRADE UNIONS
1.1 Definition and Purpose of a Trade Union
A trade union (or labour union) is an organized association of workers established to safeguard and advance their shared interests. Its core objectives include, protection of job interests, improving conditions of work (wages, benefits, workplace Safety) and overall working conditions, achieved through collective bargaining and social dialogue, conflict mediation, management and resolutions amongst members, advancement of socio-economic interests of the working masses, as legally allowed.
Workers primarily form and join trade unions to amplify their collective voices and strength, recognizing that an individual employee holds limited negotiating power against the employers.
Key motivations include:
Advancement and protection of Job Interests
Collective Bargaining and Social Dialogue with other Social Partners
Job Security
Improved Working Conditions
Conflicts mediation, management and resolution amongst members
Socio/Economic and Political Advocacy/Advancement.
Solidarity and Mutual Support
1.2 Historical and Legal Foundations of Trade Unions in Nigeria
The formal Trade Union Movement in Nigeria traces its origins to 1912, with the formation of the Nigeria Civil Service Union. This pioneering effort laid the foundation for unionization across other sectors.
By 1975, during the military regime of General Murtala Mohammed, the number of trade unions in the country had proliferated to over 800, many of which were loosely structured and lacked cohesion.
In response, the government in 1976 set up a Commission of Inquiry to look into the proliferations. An administrator was appointed to oversee the inquiry and recommend a framework for more effective union administration. This intervention was deemed necessary due to increasing ideological divisions among the unions, which were undermining labour-management relations.
Towards the end of 1977, the restructuring process culminated in the consolidation of these numerous unions into 42 industrial unions, organized along sectoral lines and this explains why Trade Unions in Nigeria are called Industrial Unions. Among these newly formed bodies was the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which emerged as a key representative of workers in the petroleum and natural gas industry.
In Nigeria, the right to unionize is firmly anchored in law:
Section 40 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) guarantees every citizen the right to freedom of association.
ILO Conventions No. 87 and 98, which Nigeria has ratified, guarantee the rights to freedom of association, organize, and collectively bargain.
The Trade Unions Act (Cap T14, LFN 2004) provides the regulatory framework, with its Third Schedule specifically listing the registered industrial trade unions and their jurisdictional scope.
1.3 Major Achievements of Trade Unions
Many workplace standards we take for granted today were won through union advocacy. Major achievements include: The Weekend, The 8-Hour Day, End of Child Labour, Workplace Safety Laws, Minimum Wage Laws, Employer-Provided Benefits, and Protection from Discrimination. In summary, trade unions transformed the modern workplace from a system of often-exploitative industrial capitalism to one with established worker rights, safety standards, and a more equitable distribution of economic gains.
In this Country, no one should forget or pretend to forget the historical and legendary struggles of NUPENG and PENGASSAN against the military for the restoration of our Democracy. It is this same democracy that brought all of us together under same roof here
2.0 NUPENG: MANDATE AND STRUCTURE IN THE OIL AND GAS SECTOR
2.1 Legal Jurisdiction and History
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) was officially established on November 2, 1977, and registered as a Trade Union on August 15, 1978.
Despite challenges like casualization and outsourcing by International Oil Companies (IOCs), NUPENG remains committed to organizing workers both in formal and informal sectors. The Union has over 150 Branches and Current membership stands at approximately 4,800 for the FORMAL Sector, with over 30,000 members in the Informal Sector.
To this paper, our focus will be on the Downstream Sector of the Nigeria oil and gas Industry and this is predominantly dominated by organized informal Branches of NUPENG, which encompass a vast number of employers and employees.
The jurisdictional scope of trade unions in Nigeria is defined by statutory law, specifically in Part B of the Third Schedule to the Trade Unions Act. This Schedule confers upon NUPENG jurisdiction over junior and mid-level workers engaged in the entire Oil and Gas Industry, including exploration, production, pipelines, refining distribution, and marketing of petroleum and natural gas, and related activities such as Petroleum Tanker Drivers, Petrol Filling Stations
2.2 Core Objectives and Informal Sector Branches
The Constitution of NUPENG states its core objectives, which include:
Organizing and unionizing all oil and gas workers,
Ensuring protection of job interests and overall welfare of members
Regulating employer-employee relations,
Regulating relationship among members
Negotiating equitable conditions of service, and
Advancing member education and training.
Advancing Socio/Economic and Political Interests of members.
NUPENG represents junior and mid-level workers across the sector and has a significant structure for organizing the formal and informal sector.
To this paper, we are focusing on the informal branches of NUPENG which includes branches such as:
Petroleum Station Workers (PSW) Branch of NUPENG- (Employees of IMB)
Independent Marketers Branch (IMB) of NUPENG- (Employees of IPMAN)
Engine Lubricant Dealers (ELD) Branch of NUPENG
Surface Tank Kerosene Peddlers (SUTAKEP) Branch of NUPENG
Liquified Petroleum Gas Retailers (LPGAR) Branch of NUPENG
Jetty and Depot Oil And Gas Workers (JEDOGW) Branch of NUPENG
The Petroleum Tanker Drivers (PTD) Branch of NUPENG – (Employees of NARTO)
3.0: THE DANGOTE REFINERY SITUATION: THE ANTI-UNION STANCE
3.1 Successful Partnership and Emerging Concerns
The leadership and members of the Nigeria Union and Natural Gas Workers commend the courage, initiative and patriotism of Alh Aliko Dangote in setting up the Dangote Refinery and Petrochemical Company in Nigeria.
Indeed, NUPENG was one of the first Stakeholders to congratulate him and paid Solidarity visit to the Refinery and Petrochemical Company.
Beyond the letter writing and courtesy visit, we also ensured total support for the seamless and very successful commencement of the operations of the production with prompt evacuation of products to create room for continuous production.
It is on record, and it is worthy to note here, that, since the launch of the operations of the refinery last year, the Petroleum Tanker Drivers (PTD) Branch of NUPENG has been instrumental in the successful nationwide distribution of its petroleum products.
Unfortunately, on the 14th of June 2025, it was announced that Dangote Refinery and Petrochemical was bringing in large numbers of CNG Truck for free delivery of Petroleum Products to Filling Stations and other Industrial Consumers. And that no Union will be allowed to unionise the new Truck Drivers to be employed
The announcement raises critical questions
What is the fate of those Truck Drivers currently servicing the Refinery and have been servicing Nigeria for decades?
Is it lawful for the employer to resist unionization of workers?
What happens to NUPENG and its members?
What happens to the existing investment in the haulage business of petroleum products?
Even, if transiting to cleaner energy, what happens to fairness, equity and inclusive growth for all Nigerians.
4.0 LEGAL ANALYSIS: NEPZA ACT VS. CONSTITUTIONAL AND ILO RIGHTS
It is important to address assertions made by the Nigeria Export Processing Zones Authority (NEPZA) regarding Section 18(5) of the NEPZA Act, which states:
“There shall be no strikes or lockouts for a period of ten years following the commencement of operations within a zone and any trade dispute arising within a Zone shall be resolved by the Authority”.
However, the legal position is more nuanced than this.
The NEPZA Act’s provisions are subordinate to the fundamental conventions of the International Labour Organization (ILO)—specifically Conventions 87 and 98, which guarantee the right to freedom of association and collective bargaining. These conventions, ratified by Nigeria, are recognized as constitutional rights under Section 254C(2) of the 1999 Constitution (as amended). The ILO Committee of Experts has consistently affirmed that recognition strikes are lawful. Therefore, any statutory provision that attempts to prohibit such rights is inconsistent with constitutional guarantees.
Furthermore, Section 4(e) of the NEPZA Act, which deals with the resolution of trade disputes, does not prohibit the existence of trade unions. Its scope is limited to resolving employment-related issues affecting individual employees and does not extend to collective labour disputes, which are governed by the Trade Disputes Act (TDA).
5.0. ABROGATE DRACONIAN LAWS FROM NIGERIA’S STATUTE BOOKS:
PETROLEUM PRODUCTION AND DISTRIBUTION (ANTI-SABOTAGE) ACT, CAP P.12, LAWS OF THE FEDERATION OF NIGERIA, 2004
One singular draconian law characterizes the deprivation of fundamental right of oil workers in particular. This is the Petroleum Production and Distribution (Anti-Sabotage) Act, CAP P.12, Laws of the Federation of Nigeria, 2004.
This law criminalizes what it terms ‘sabotage’. Any form of strike action by workers can easily pass for ‘sabotage’ considering the definition of the scope of the meanings of ‘sabotage’ under the Act. This is because, under the Act, any form of interruption in the process of production or distribution of petroleum products qualifies for ‘sabotage’, which is punishable, on conviction, by death sentence or imprisonment for a term not exceeding 21 years.
Under section 1 sub (1) of the Act, any person who wilfully does any of the following things or any person who aids, incites, counsels or procures any other person, to do any of the following things, whether or not that other person does any of the things, shall be guilty of the offence of ‘sabotage”. The ‘things’ or acts spelt out are:
doing anything with intent to obstruct or prevent the production or distribution of petroleum products in any part of Nigeria; or
doing anything with intent to obstruct or prevent the procurement of petroleum products for distribution in any part of Nigeria; or
doing anything in respect of any vehicle or any public highway with intent to obstruct or prevent the use of that vehicle or that public highway for the distribution of petroleum products,
Though this legislation has not been fully applied, nothing stops the State from fully applying it against striking oil workers, if and when the State feels strong enough to do so, for as long as it remains in the statute books. The mere existence of the Act is a threat to the exercise of fundamental right of peaceful action guaranteed under the constitution.
The National Assembly should not retain laws that threaten the exercise of fundamental rights.
6.0. INITIATE LEGISLATION TO GUARANTEE A DECENT WORK AGENDA THAT WOULD MAKE EMPLOYERS, PRIVATE EMPLOYMENT AGENCIES, AND ALL OTHER OPERATORS & CONTRACTORS IN THE OIL AND GAS INDUSTRY TO BE BOUND BY THE ILO’S FUNDAMENTAL RIGHTS AT WORK
Articles 11 & 12 of C181 – Private Employment Agencies Convention, 1997 (No. 181) make this obligation very clear, as follows:
A Member shall, in accordance with national law and practice, take the necessary measures to ensure adequate protection for the workers employed by private employment agencies as described in Article 1, paragraph 1(b) above, in relation to:
(a) freedom of association;
(b) collective bargaining;
(c) minimum wages;
(d) working time and other working conditions;
(e) statutory social security benefits;
(f) access to training;
(g) occupational safety and health;
(h) compensation in case of occupational accidents or diseases;
(i) compensation in case of insolvency and protection of workers claims;
(j) maternity protection and benefits, and parental protection and benefits.
(See Article 11 of C181).
Similar provisions are made in Labour Clauses (Public Contracts) Convention, 1949 (No. 94). The legal regime in Nigeria should be such that compliance with ILO Conventions on fundamental rights at work by employers, public and private, is a fundamental condition precedent to allowing companies to operate in the oil and gas sector.
7.0 CONCLUSION AND DEMANDS
In this struggle, NUPENG stands not just for its members, but for every Nigerian whose livelihood depends on a fair and competitive energy economy. NUPENG’s demands are not radical; they are reasonable, responsible, and rooted in the pursuit of fairness and laws of the land.
Therefore, we respectfully submit the following demands to this Honourable Committee:
Union Recognition: We call for the immediate recognition of NUPENG and PENGASSAN as the only statutorily recognized union for all junior and senior staff workers to join in the entire oil and gas industry. Union recognition by the employer should be a condition precedent to allowing any company to continue to operate. This is the position of both domestic and international instruments, particularly ILO standards, which are the minimum standards on a global scale. The case of Nigeria should not an exception. By extension, the case of Dangote Refinery should not be an exception. Where all other IOCs (International Oil Companies) accommodate trade unions, the Dangote Refinery should not above the law. Recognizing the union is the first step toward building a sustainable, inclusive downstream petroleum sector where workers are respected and businesses can thrive.
This demand is in line with 1999 Constitution of the Federal Republic of Nigeria (as amended) (the Constitution), guarantees in section 40 that:
“Every person shall be entitled to assemble freely and associate with other persons, and in particular he may form or belong to any political party, trade union or any other association for the protection of his interests.”
The National Industrial Court of Nigeria (NICN) has put the position of the law pungently in Nestoil PLC v. National Union of Petroleum and Natural Gas Workers (NUPENG) (2012) 29 NLLR (Pt. 82) 90 at 155, paragraphs C-F, as follows: “As far as our law is concerned, junior staff are deemed to be members of a union until they individually and in writing opt not to be; while senior staff are deemed not to be members until they individually and in writing opt to be. This means that if in truth the defendant is the proper union to unionize junior staff of the defendant, the question of them having to agree and express their interest before they can join the defendant’s union will not arise. All that will be required of them is that if they do not want to be members, they can opt out”.