SIR: The Dangote–NUPENG standoff is not just a labour dispute; it exposes a deeper problem of unions turning into cartels that distort prices and burden consumers.
Trade unions exist to protect workers, not to police commerce. Yet in Nigeria, many unions now act as toll collectors and price setters, erecting barriers that inflate costs and punish competition.
A bus operator who has cleared every FRSC and VIO requirement cannot load passengers at a motor park without paying a union “licence fee.” A trader with a government-approved stall must “register” with the market union before selling. And in many sectors, entrepreneurs cannot even start a business without paying unions for a so-called “licence” or entry fee — a demand that has no basis in law but is enforced through intimidation.
Beyond levies, unions also fix prices. Transport fares are dictated by union tables, regardless of fuel prices or efficiency. Market associations set minimum prices for staples and punish traders who sell cheaper. Artisan unions impose fixed labour charges. The outcome is cartel pricing that strangles competition and makes life more expensive for Nigerians.
The recent clash between Dangote Refinery and NUPENG brings this into sharp focus. Dangote deployed its own trucks and offered free haulage to retail stations. Consumers welcomed it, but union truck owners saw ruin — they could not compete with “free” transport. Worse for NUPENG, Dangote’s trucks refused to pay union loading fees. Their revenue model collapsed overnight, leading to strike threats, court action, and government intervention.
The lesson is simple: Unions are not regulators. They have no mandate to license entrepreneurs or dictate market prices. That responsibility belongs to government. Regulators must treat anti-competitive behaviour by unions the same way they treat cartels in other industries.
If unions return to their rightful role — protecting workers, not taxing business — and government enforces the rules, Nigerians will finally see lower costs, more competition, and stronger growth.
Andrew Agenmonye is a commentator on public affairs.
