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Home » Posts » NUPENG Under Fire as Fuel Distributors Claim Extortion in Oil Sector

NUPENG Under Fire as Fuel Distributors Claim Extortion in Oil Sector

by Vanessa
September 9, 2025
in Business
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ADITOP Alleges NUPENG Engages in Extortion
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The Association of Distributors and Transporters of Petroleum Products (ADITOP) alleges that NUPENG extorts tanker owners through illegal levies, calling the practice economic sabotage in the downstream industry.

Vote of No Confidence in NUPENG

The Lagos Zone of the Petroleum Tanker Drivers Branch (PTD) recently passed a vote of no confidence in NUPENG’s leadership. The zonal executives targeted National President Williams Akporeha and General Secretary Afolabi Olawale. They accused both leaders of greed, impunity, manipulation, and incompetence.

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The decision followed an emergency meeting in Lagos on Monday, September 8, 2025. The meeting came amid growing tension over Dangote Refinery and MRS Holdings Limited. Both companies were accused of resisting the unionization of drivers while deploying 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide petroleum distribution.

 

ADITOP Distances Itself from Strike

In Abuja, ADITOP’s National President, Lawal Dan-zaki, issued a statement rejecting NUPENG’s planned strike. He explained that ADITOP was created to counter the excesses of NUPENG, PTD, and other groups that impose unapproved levies.

Dan-zaki said the association has, for over five years, submitted several petitions against NUPENG’s activities. The petitions went to the Inspector-General of Police, the State Security Services, the National Security Adviser, and the Secretary to the Government of the Federation. He stressed that the aim was to draw attention to alleged extortion within the petroleum distribution chain.

 

“NUPENG Survives on Extortion”

Dan-zaki accused NUPENG of operating like a cartel. He alleged that the union exploits distributors and depot owners without paying taxes to the Federal Government.

He stated:

“NUPENG, PTD, and other groups under its cover collect one naira per litre of every petroleum product loaded in depots. They also collect another one naira per litre from marketers. In addition, they charge between N80,000 and N100,000 as loading fees per truck. This is outright extortion and pure economic sabotage.”

He insisted that these illegal collections raise operational costs, weaken legitimate businesses, and burden consumers with higher pump prices.

 

Rising Industry Tension

The dispute has created deep distrust between petroleum distributors and unions. Stakeholders worry that the conflict could disrupt supply chains, especially as the government promotes CNG-powered trucks to cut fuel costs.

Industry analysts warn that the standoff may escalate if regulators fail to intervene. They argue that unchecked extortion discourages investment and fuels inflation.

 

Call for Government Intervention

Dan-zaki urged the Federal Government to investigate NUPENG’s operations and enforce strict penalties against illegal levies. He noted that ADITOP supports unions that defend workers’ rights. However, he emphasized that no association should enrich itself at the expense of the economy.

According to him, NUPENG’s actions undermine stability in the petroleum sector and threaten national economic growth. He called on regulators and security agencies to protect distributors and ensure fair operations within the industry.

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Vanessa

Vanessa

I'm a journalist and relationship columnist. Nigeria Media Merit (NMMA) 1st Runner Up Award Recipient. I'm passionate about arts, entertainment,marriage, religion and politics. I love giving back to society.

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