The Nigerian Association of Road Transport Owners (NARTO) has expressed support for the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in its ongoing rift with the Dangote Group over alleged monopolistic practices in the downstream oil and gas sector.
On Friday, NUPENG announced that its members would commence a nationwide strike from Monday, 8 September.
The strike is in protest against what it described as anti-union labour practices, linked to the deployment of newly imported Compressed Natural Gas (CNG) trucks by the Dangote Refinery, for direct distribution of petroleum products.
The strategic programme is part of Dangote’s broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development.
NARTO in a statement signed by its National President, Othman Yusuf, on Sunday, said it rejects Dangote’s plan for free distribution of petroleum products, citing its unsustainability and potential to eliminate independent transporters who operate over 30,000 trucks across the country.
“The Nigerian Association of Road Transport Owners (NARTO) wishes to notify all stakeholders and the general public of its firm position in support of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in the ongoing struggle against monopolistic and anti-competition practices being advanced by the Dangote Group in the downstream oil and gas sector.
“While we recognise and appreciate the injection of new trucks and other investments into the petroleum distribution value chain, we must state categorically that NARTO strongly and unequivocally rejects any plan for free distribution of petroleum products,” the statement said.
According to NARTO, such an approach is not only unsustainable but is also a deliberate attempt to undermine and eliminate the thousands of independent transporters who form the backbone of Nigeria’s petroleum distribution network.
At present, it said, NARTO members collectively operate more than 30,000 trucks across the country, employing thousands of drivers, assistants, and service providers.
According to the statement, these operations sustain millions of dependents and are supported by financial commitments from both local and international banks, as well as marketers and depot owners.
It added that any attempt to eliminate the established distribution structure will result in loss of investment for truck owners financed by local and international banks.
It will also “destroy livelihoods leading to mass unemployment for drivers, mechanics, loaders, and others whose survival depends on petroleum distribution, threaten national security as unemployment and economic displacement of this scale could fuel unrest and instability.”
The group said the move will “jeopardise energy security by concentrating the distribution of petroleum products in the hands of a single entity, thereby surrendering a critical aspect of national infrastructure to private monopoly control and exploiting consumers in the long run.”
It noted that monopolistic practices will eventually pave the way for price manipulation and supply strangulation through the use of economies of scale.
Furthermore, it said Section 212 of the Petroleum Industry Act (PIA) and the regulatory stance of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) clearly emphasise the need for a level playing field in the downstream sector.
“To ignore this provision is to endanger fair competition, consumer protection, and the overall health of the Nigerian economy,” it added.
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Call for dialogue
NARTO urged the federal government and its relevant Ministries, Departments, and Agencies (MDAs), the Office of the National Security Adviser (NSA), and the Dangote Group to engage in meaningful dialogue among all stakeholders to ensure that no operator is strangulated and ensure fair competition and safeguard the welfare of millions of Nigerians dependent on the petroleum transport and distribution sector.
“NARTO reaffirms its total support for NUPENG in this struggle and emphasises that our collective action is not against investment or industrial growth but against monopolistic practices that threaten jobs, national security, and the broader Nigerian economy,” it said.
