NUPENG: Dangote dismisses alleged monopoly and fuel hikes, restates commitment to workers’ rights

*Dangote Petroleum Refinery counters several allegations levelled against it by the Nigeria Union of Petroleum and Natural Gas Workers, restating the oil-refining company’s ‘full support for constitutionally protected Labour rights, stating that employees are free to affiliate with any recognised trade union’

Alexander Davis | ConsumerConnect

The Dangote Petroleum Refinery has discredited recent allegations by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over its alleged denial of workers’ rights.

Dangote, however, insisted that claims of anti-Labour practices, monopolistic behaviour, and planned fuel price hikes are “entirely unfounded”.

Earlier, NUPENG in a statement September 5, 2025, and in subsequent media appearances, has purported that Dangote Group was undermining union activities and threatening workers’ welfare through its new deployment of Compressed Natural Gas (CNG) powered trucks.

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Responding to the Union’s accusations, Dangote Refinery, in a statement Friday, September 12, 2025, reiterated its full support for constitutionally protected labour rights, stating that employees are free to affiliate with any recognised trade union.

The statement also noted: “Assertions that drivers are compelled to waive union rights are categorically false.”

Dangote argued that the dispute involved NUPENG’s Petrol Tanker Drivers (PTD) unit, and did not implicate the Refinery in any breach of workers’ rights.

Central to NUPENG’s allegations is the roll-out of over 4,000 CNG-powered bulk trucks, which the union claims could displace existing jobs.

Dangote Group, however, “firmly refuted this”, describing the initiative as a cornerstone of Nigeria’s energy transition strategy.

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It said: “The deployment of CNG-powered trucks is a strategic initiative designed to support national energy transition goals, not to displace existing jobs.”

According to Dangote, each truck will be operated by a six-person team, with drivers receiving salaries significantly above the National Minimum Wage, plus medical cover, pensions, housing allowances, and long-term access to housing loans. The company aims to have 10,000 such trucks in operation by year-end, potentially creating over 60,000 direct jobs.

On alleged monopolistic practices in oil & gas industry

In connection with accusations of monopolistic behaviour, Dangote Refinery stressed its compliance with Nigeria’s deregulated oil sector under the supervision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The company also highlighted that over 30 refinery licences were issued to private players, with active developments by BUA, Aradel, Walter Smith, and the Edo Refinery.

“While we are major industry player, our presence has revitalised the downstream sector, reopened previously dormant petrol stations and restored investor confidence,” the Management said.

The statement also drew parallels with the company’s influence in the cement industry.

Dangote Refinery claimed that its entry into the sector has helped to eliminate Nigeria’s reliance on imports, and spurred the rise of other local producers.

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Dangote Refinery strongly denied any plans to increase fuel prices, it noted.

On the contrary, the company claims its operations have stabilised fuel availability and driven down costs.

It equally said that diesel prices, for instance, had dropped by over 30 percent in the past year, and petrol prices in Nigeria are now reportedly lower than in oil-rich nations like Saudi Arabia and 40 percent cheaper than neighbouring West African countries.

The company also pointed to its N720 billion investment in CNG infrastructure as evidence of its commitment to reducing logistics costs and improving nationwide fuel distribution.

Dangote stated it maintains a cordial and cooperative relationship with all recognised trade unions, including NUPENG.

It rejected accusations of walking out on recent conciliation efforts, stating that the union had not formally communicated any grievances before going public.

The company averred: “We acknowledge and appreciate the intervention of the Federal Government, particularly the Ministry of Labour and Employment, and remain fully supportive of ongoing efforts to achieve a lasting resolution.

“We hold both the Minister, Dr. Mohammed Dingyadi (Katuka Sokoto) and Mrs. Nkiruka Onyejeocha, in the highest regards, and reject any suggestion that we have acted in a manner that would undermine their involvement.

The Hon. Minister granted Malam Sayyu Dantata the permit to enable him attend to his medication,” the company said.

It further expressed appreciation for the roles played by the Federal Ministry of Labour and Employment, and other key Ministers involved in mediating the dispute.

Since its commissioning just over a year ago, Dangote Refinery said the $20 billion oil-refining facility had transformed the country into a net exporter of refined fuels, supplying markets as far as the United States (US).

The production of key by-products, such as polypropylene, LPG, and naphtha is said to be catalysing growth in manufacturing, aviation, and agro-processing sectors, Dangote stated.

The company as well explained that its domestic LPG supply has led to a noticeable drop in cooking gas prices, promoting cleaner household energy use and reducing dependency on firewood and kerosene.

With over 570,000 direct and indirect jobs created, including through road, power, and water infrastructure projects, Dangote Refinery has positioned itself as a centre for skills development and technology transfer in Nigeria.

Reiterating its commitment to responsible business, Dangote Group concluded by dismissing the monopoly allegations as “recycled falsehoods”, urging other private sector players to follow its lead in investing in Nigeria’s economic future.

“At Dangote, we have chosen to invest boldly in Nigeria’s future and we will continue to do so. It is time others follow suit,” the statement noted.

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