General
Dangote Refinery Fuel Distribution Model Tears Unions Apart
By Adedapo Adesanya
Some stakeholders in the nation’s downstream oil sector are at loggerheads over the industrial action threatened by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) as regards Dangote Refinery’s alleged anti-union practices.
The development has raised questions, with many quarters calling for a speedy resolution before the action commences fully.
On its part, the Direct Trucking Company Drivers Association (DTCDA) has called on the federal government to take necessary measures to prevent coercive recruitment by any organisation, citing the constitutionally guaranteed right to freedom of association.
NUPENG had accused Mr Aliko Dangote and Mr Sayyu Dantata, owner of MRS filling stations, of engaging in alleged anti-union practices. The union claimed the businessmen were trying to monopolise Nigeria’s downstream oil and gas distribution while suppressing workers’ rights.
Recall that in June, the Dangote Petroleum Refinery announced a major initiative to transform Nigeria’s fuel distribution landscape. At the time, the company said that effective August 15, 2025, it would begin distributing petrol and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users nationwide.
To ensure the smooth take-off of this scheme, the refinery said it invested in the procurement of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers.
However, due to supply challenges, this has not fully taken off.
For NUPENG, whose membership includes petrol tanker drivers, it alleged that the drivers recruited for the CNG trucks are being forced to sign undertakings not to belong to any existing union in the oil and gas industry.
The union called on the federal government and its agencies to call the two businessmen to order, adding that if anti-union attitudes persist, it would mobilise its members to fight within the framework of the law.
Despite this, others are not fully onboard with DTCDA, in a statement signed by its National President, Mr Enoch Kanawa, on Saturday, clarifying that it is not joining issues with the NUPENG as there is no basis for that.
“We, as stakeholders in the Nigerian transport industry, deem it fit to put issues in their proper perspectives so that the public is not being manipulated and taken for a ride because the Constitution of the Federal Republic of Nigeria guarantees the freedom of association for persons to voluntarily choose who and whom to associate or partner with. More so that the Nigerian economy is fully deregulated.
“The DTCDA is an association and not a union. It is an organisation of all drivers, both in the wet and dry cargo, of the transport sector, of which Dangote drivers, MRS and other drivers of established transport companies are members.”
The association said its roles include getting the oil firms to cater for the general welfare of their drivers “in terms of health, insurance and pension benefits, especially post retirement.”
The DTCDA said it is open to all drivers who subscribe to the association’s objective and who are desirous of a better working life during and after retirement.
“This is to give them and their families a guaranteed future. The leadership of the DTCDA is committed to the transparent, accountable and good governance of the association in the promotion and protection of its members’ welfare, ensuring safe driving, education, safety and sanity on our highways.”
The DTCDA said it will not interfere with the operation of any organisation, union or association in Nigeria; rather, drivers should be allowed to have a freedom of choice on which union or association can best serve their interests in the course of the legitimate pursuit of their driving experience.
“Any person who is licensed to drive a heavy-duty vehicle should be mature enough both physically, mentally and emotionally to discern which organisation can best serve his/her own interests.
“The DTCDA therefore urges the federal government and its agencies to take every measure necessary to prevent any one organisation trying to recruit membership by coercion, thereby breaching the constitutionally guaranteed right to freedom of association, thought and expression as enshrined in the Constitution of the Federal Republic of Nigeria 1999 as amended,” it added.
The DTCDA said it is in full support of the deregulation of the downstream sector of the Nigerian economy and the Renewed Hope agenda of President Tinubu, “of which our members are poised to play an integral role in the distribution of goods and services throughout the country.”
“The DTCDA believes that any action against the smooth flow of petroleum products in the country is a disservice, flagrant abuse of the power of unionism and should be condemned by all Nigerians and the general public,” it said.
Also, the Nigeria Labour Congress (NLC) has asked President Tinubu to intervene to prevent a crisis in the oil sector.
By Aduragbemi Omiyale
The Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have announced a strategic collaboration to develop a robust Non-Interest Mortgage (NIM) ecosystem.
This significant move is part of efforts to address the nation’s massive housing deficit and deepen financial inclusion.
At a high-level meeting in Abuja of Friday, both parties agreed to create and regulate viable Sharia-compliant financing structures that will enable millions of Nigerians, particularly those excluded from conventional interest-based loans, to access affordable homeownership.
With Nigeria’s housing deficit estimated to be over 28 million units, the initiative is being hailed as a potential game-changer. It directly addresses a key barrier to homeownership: the affordability and religious compliance of mortgage products for a significant segment of the population.
The successful implementation of this framework is expected to not only reduce the housing deficit but also stimulate the construction industry, create jobs, and foster greater financial inclusion, ultimately contributing to national economic growth.
How Non-Interest Mortgage Model Works
Unlike conventional mortgages that charge interest, non-interest financing is based on principles of risk-sharing, asset-backing, and equitable returns. The models under consideration include:
- Musharakah (Diminishing Partnership): The bank and the customer jointly purchase a property. The customer gradually buys out the bank’s share through periodic payments, eventually becoming the sole owner.
- Ijara (Lease-to-Own): The bank buys the property and leases it to the customer for a fixed period. A portion of the rental payments goes towards the eventual ownership transfer.
- Murabaha (Cost-Plus Sale): The bank acquires the property and sells it to the customer at a pre-agreed markup, payable in instalments.
SEC DG Speaks
Commenting on the development, the Director-General of SEC, Mr Emomotimi Agama, said his agency would provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk (imic bonds) and other non-interest capital market products to fund these mortgages.
“Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector. By creating a clear regulatory pathway for non-interest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area. This will create a virtuous cycle of funding, construction, and ownership,” he stated.
What FMBN CEO also said
On his part, the chief executive of FMBN, Mr Shehu Osidi, said the partnership marks a critical step in fulfilling the bank’s mandate to provide affordable housing for all Nigerians.
“For a long time, a substantial number of our citizens have been unable to participate in the National Housing Fund (NHF) scheme due to the interest-based nature of conventional mortgages.
“This partnership with SEC is a strategic response to that gap. We are committed to developing non-interest mortgage products that are not only ethical and inclusive but also financially sustainable,” he noted.
An expert opinion
A housing and finance expert, Mr Ebilate McYoroki, welcomed the development he described as “long overdue.”
“This is a masterstroke in financial inclusion. It taps into a vast pool of potential homeowners and investors who have previously been on the sidelines. If implemented transparently, it could significantly accelerate the pace of housing delivery in the country,” he submitted.
By Adedapo Adesanya
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) is seeking a change to the poor state of pension in the country’s oil and gas industry.
As a result, the union has expressed deep concern over the poor growth of pensions and widening disparities in retirement benefits for energy workers.
PENGASSAN said many retirees under the Closed Pension Fund Administrations (CPFAs) were trapped in a system that had failed to reflect current economic realities, leaving their pensions stagnant despite rising inflation and devaluation of the Naira.
The president of PENGASSAN, Mr Festus Osifo, while speaking at a one-day summit organised by the union in Abuja this week, said the problem stemmed from policy gaps in Nigeria’s pension system and inconsistent adjustments by oil companies operating CPFAs.
He explained that the 2004 Pension Reform Act introduced the contributory pension scheme while allowing some oil and gas firms to continue running the defined benefits model under CPFAs. However, the 2014 amendment to the law barred new employees from joining the defined benefits system, placing them under the contributory scheme.
According to him, while a few companies have mechanisms for regular pension growth, the majority still depend on management discretion, leaving retirees to face hardship as their fixed benefits lose value over time.
Mr Osifo also criticized the way some companies calculate their pension funds and urged the National Pension Commission (PenCom) to tighten its monitoring of the process, noting that the agency must ensure that pension funds remain adequate to cater for both current retirees and future beneficiaries.
The labour leader further disclosed that PENGASSAN would embark on sustained advocacy across the oil and gas sector to address identified gaps in pension management and improve the welfare of retirees, adding that the union will engage management of CPFAs that fail to meet their obligations to ensure equity and fairness for pensioners.
“Over time, we have realised that there is a serious gap in the system. In many organisations, people who retired several years ago still earn the same amount, even though the cost of living has skyrocketed.
“Only about 10 per cent of CPFAs review their pension benefits yearly, while nearly 90 per cent maintain static payments, depending solely on management discretion.
“PenCom must ensure that pension funds are sufficient to take care of today’s retirees and those that will join them in the future. We have observed gaps in how life expectancy and other variables are calculated, and these affect the overall fund balance.
“One of the institutions that have functioned excellently in Nigeria is PenCom. I pray they continue to maintain that high standard so that Nigeria will not happen to them.
“Those organisations doing what is right, we appreciate them. But for those that are not, we will engage them to make the lives of our pensioners more rewarding. It is our duty to take care of those who laboured before us because tomorrow we will also become pensioners,” he stated.
By Modupe Gbadeyanka
A former Governor of Anambra State, Mr Willie Obiano, has refuted reports that he passed away in London, the United Kingdom.
It was earlier reported that the politician breathed his last after a battle with an illness believed to be cancer.
He was reported to have suffered from “severe heart failure and complications related to urinary cancer,” with his health declining in the past months.
However, in a post on Friday evening, Aguleri-born former banker with Fidelity Bank Plc said, “I am alive, hale, hearty, and in excellent health. By the special grace of God, I am doing very well.”
The graduate of the University of Lagos (UNILAG) said he “woke to hear of a rumour making the rounds about my wellbeing.”
“It is unfortunate that some individuals still find joy in spreading falsehood simply for reasons yet to be established. But we will continue to rise above such mischief.
“To everyone who reached out with calls, messages, and prayers, I sincerely appreciate your concern. Your love and goodwill mean more than words can express,” he wrote, asking well-wishers to “disregard the rumour entirely.”
Mr Obiano was born on August 8, 1955. He became the Governor of Anambra State after the former presidential candidate of the Labour Party (LP) in the 2023 election, Mr Peter Obi, finished his tenure as Governor of the same state.
He was succeeded by the current Governor of Anambra State, Mr Charles Soludo, who secured a second term in office last weekend.
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