Why Dangote Refinery Wants Private Investors To Increase Investment 

LAGOS –  Dangote Petroleum Refinery has urged other private sector players to follow its lead in investing in Nigeria’s economic future. 

It reiterated its commitment to responsible business, and dismissed the monopoly allegations in some quarters. 

The company said: “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.” 

It dismissed recent allegations made by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), insisting that claims of anti-labour practices, monopolistic behaviour, and planned fuel price hikes are “entirely unfounded”. 

The union’s statement, released on 5 September, and subsequent media appearances, alleged that Dangote Group was undermining union activities and threatening workers’ welfare through its new deployment of compressed natural gas (CNG) powered trucks. 

Dangote Refinery reiterated its full support for constitutionally protected labour rights, stating that employees are free to affiliate with any recognised trade union. “Assertions that drivers are compelled to waive union rights are categorically false,” the statement said, adding that the dispute involves NUPENG’s Petrol Tanker Drivers (PTD) unit and does not implicate the refinery in any breach of 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 firmly refuted this, describing the initiative as a cornerstone of Nigeria’s energy transition strategy. 

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

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

The company highlighted that over 30 refinery licences have been 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. 

It drew parallels with the company’s influence in the cement industry, noting that Dangote’s entry helped eliminate Nigeria’s reliance on imports and spurred the rise of other local producers.