By AfricaLiveNews Staff
In a strongly worded response, Dangote Petroleum Refinery has publicly dismissed serious allegations made by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), stating that the claims misrepresent the company’s practices and its role in advancing the welfare of workers, national economic development, and Nigeria’s energy transition.
Union Suppression Claims Denied
In a statement released Thursday, Dangote Petroleum firmly rejected allegations that it suppresses trade union activities or coerces employees in relation to union membership. The company affirmed that all employees are free to join or associate with any recognised trade union of their choice, and that there is no policy or practice preventing workers from exercising their fundamental right to collective representation.
CNG Truck Initiative: Job Creation, Not Displacement
At the centre of recent tensions lies Dangote’s compressed natural gas (CNG) truck initiative, valued at ₦720 billion. NUPENG has raised concerns that this programme could displace existing jobs. However, Dangote Petroleum insists the scheme is not only consistent with the nation’s energy transition goals, but is also structured to generate substantial employment.
According to the company, the CNG initiative is projected to create over 60,000 direct jobs, all offering above-minimum-wage salaries. Benefits will include insurance, housing allowances, and pensions. Dangote emphasises that these measures underscore its commitment to improving labour conditions and delivering long-term economic benefits to its workforce.
Competition, Market Structure and Price Impacts
Amid accusations of monopolistic intentions following Dangote’s entry into Nigeria’s downstream oil sector, the company clarified that the sector remains deregulated and that multiple refinery projects are currently in development by various market players. It asserted that its operations have in fact revitalised competition.
One of the most tangible outcomes, according to the company, has been a drop of over 30% in diesel prices, alongside improved stability in petrol supply. Dangote claims that fuel has become cheaper within Nigeria than in many neighbouring countries—an outcome the company attributed to its production capacity and increased refining activities.
Fuel Prices, Supply and Export Status
Contrary to widespread fears that Dangote’s expanded role could trigger hikes in domestic fuel prices, the refinery says it has consistently absorbed operational and market costs in a bid to stabilise pump prices. Dangote insists that it is not allowing pass-through costs to burden consumers.
Since becoming operational just over a year ago, Dangote Petroleum reports several milestones:
- Nigeria has become a net exporter of refined petroleum products, a status that has helped improve foreign exchange flows and strengthen the country’s economic balance.
- Over 570,000 direct and indirect jobs have been created under Dangote’s operations, supporting livelihoods across multiple sectors.
- Local infrastructure development and technical skills expansion have been boosted, positioning the country to serve as a regional refining hub.
Workers’ Welfare and Conditions
Dangote also addressed questions about its treatment of workers. The company says that its worker-welfare policies include generous compensation packages, access to decent housing, health insurance, and pensions. The CNG programme in particular will extend those benefits to new employees engaged under the initiative.
It reaffirmed that its hiring practices adhere to labour laws and ethical standards. Dangote says there is no attempt to sideline existing employees or to replace labour with automation without due social consideration.
Call for Constructive Dialogue
While Dangote asserts that its relationship with trade unions remains largely cordial, the company took a firm stance against what it describes as unhelpful rhetoric and actions. It urged NUPENG to engage through constructive dialogue — rather than through public accusations — to address differences and collaborate in ways that will safeguard workers’ interests while preserving economic stability.
The Bigger Picture: Nigeria’s Energy Transition and Economic Recovery
Dangote Petroleum positions its operations and recent investments as critical to Nigeria’s broader goals of energy transition, economic recovery, and job creation. Key elements of that vision include:
- Diversifying energy supply chains by introducing natural gas–based vehicles (via the CNG programme), seen as a more sustainable fuel option.
- Expanding refining capacity domestically to reduce reliance on fuel imports, thus lowering costs, conserving foreign exchange, and improving stability of supply.
- Contributing to infrastructural development in areas where refineries, pipelines, transport, and logistics are required — offering spill-over benefits for host communities.
- Investing in skills, technology transfer, and local content, thereby developing the Nigerian workforce to meet both current and future industry demands.
Conclusion
Dangote Petroleum’s rebuttal to NUPENG’s claims emphasises its commitment to workers’ rights, job creation, affordable fuel, and Nigeria’s position in the global refining sector. While the company has denied suppression of union activity or monopolistic behaviour, it concedes that open discussion and cooperative engagement with labour bodies are essential.
As Dangote Petroleum continues to expand operations, implement its ₦720 billion CNG scheme, and solidify its export capacity, it remains to be seen how its relationship with unions will evolve—and whether the company’s promises on wages, benefits, and dialogue will satisfy labour concerns.
AfricaLiveNews Takeaway: Whatever one’s view, the friction between Dangote Petroleum and NUPENG shines a spotlight on how Nigeria balances rapid industrial expansion with labour rights, fair competition, and consumer protection. For many, the coming months will be a test of whether large-scale investment can coexist harmoniously with the social contracts binding workers, unions, and industry.
This article was compiled using statements from Dangote Petroleum’s press release issued Thursday. AfricaLiveNews will continue to monitor developments and publish union responses, industry analysis, and related policy implications.
