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Tag: Dangote

  • Dangote: refinery to be listed soon on stock exchange

    Dangote: refinery to be listed soon on stock exchange

    Founder, Dangote Group, Alhaji Aliko Dangote, has cautioned against using the cry of monopoly to discourage indigenous investment and industrial growth in Nigeria, saying no one was prevented from investing in the country.

    Dangote said this yesterday at the 2025 Inaugural Annual Downstream Petroleum Week organized by the House of Representatives  Committee on Petroleum Resources (Downstream).

    Represented by the Group Chief Strategy Officer at Dangote Industries Limited, Aliyu Suleman, he rather encouraged focus on policies that encourage productivity, innovation, and competition.

    Addressing the issue of monopoly with the refinery, he said, “Too many people with the means to build industries  chose instead to invest abroad.  We decided from afar while adding little value to our economy.  We have chosen differently.  We have chosen to get to Nigeria. We  have chosen to build here,  to employ here,  to produce here.  So let us not use  the cry of monopoly to start from growth.  No one is prevented from investing.

    We welcome others to build their own refineries and we will offer support in whatever way we can.”

    “Nigeria holds the natural competitive advantage in refining. We enjoy proximity to oil and gas supply. We should therefore work together to develop this sector.

     “We should work to enact and implement laws that will help this sector to prosper. Let us protect our industries and deliver the economic transformation this country deserves.”

    He said today, the Dangote Refinery can meet all of Nigeria’s demand for diesel and jet fuel and still have surplus for exports.

    Dangote said soon, the refinery would be listed on the stock exchange, giving Nigerians the opportunity to become shareholders of this national asset.

    He said Africa’s refining sector remains underdeveloped, both relative to its consumption and relative to the volume of crude that is produced in Africa.

     “While Europe and Asia refine over 95 % of their petroleum product refinement, Africa refines only 40%. In sub-Saharan Africa, there are very few large functional refineries today. This is understandable because refining is capital intensive,  it is technologically complex and often is a low margin business.  So as a result, many entrepreneurs and governments have chosen to stay away.  But at Dangote,  we are known for taking bold steps.  We are known for making large scale investments to substitute imports  and create value in the country.

     “Therefore, this is a challenge that we were happy to take. When it came to tackling the refining challenge, we decided to do it even though it was not easy. Building a world-class refinery anywhere in the world is a huge task. It is capital-intensive and very demanding. To build ours, we collected over 2,700 hectares of land, pumped 65 million cubic meters of sand to stabilize the site, installed over 250,000 foundation bars, and laid millions of meters of piping, cabling, and wiring. At peak, we had over 60,000 people on site,  of which 50,000 were Nigerians.  We had these people working around the clock  across hundreds of disciplines  and nationalities.

     “Today, the Dangote refinery can meet all of Nigeria’s demand for diesel and jet fuel and still have surplus for exports, which can be used in valuable foreign exchange for Nigeria. The refinery can meet 90 % of Nigeria’s PMS requirements. This is based on the official consumption numbers of 50 million per day. Our views are the real consumption, perhaps more about 40 million, in which case we should be able to meet demand.

     “Across the world, major oil producers typically meet their petroleum product requirements through their own domestic refineries, not through imports. The United States, for example, imports only about 8 % of their petroleum products requirement. If you look at most of the major crude oil producers, you will see that they do not import more than 10 % of their petroleum products from the US. This is where Nigeria should be heading. And with the advent of the Dangote refinery and unbundling of the sector, we  hope that we will get there.

     “At the Dangote Group, our strategy across all our businesses  is to  provide our customers with high quality products at attractive prices.  Not just in the refinery, across all the businesses. Same in cement, sugar and the rest.  Refined products from our refinery are of higher quality and yet our prices are below import parity  and below the  average prices across most African countries.  Across Africa, PMS and diesel sell for around $1 per litre,  net of tax system of sorts.  But in Nigeria, the current price  is below $0.60 per litre.

     “This is a huge cost benefit for Nigerians.  Even though the cost benefit may not be immediately obvious  because before the advent of the Dangote refinery,  subsidies were used to mask the real market price. Still, despite all this, we find ourselves in a situation  where Nigeria imports petroleum products, while at the same time Dangote refinery is exporting.  This is a paradox that we must address  in order for this sector  to grow.

     “Beyond energy security,  domestic refining brought economic benefits.  Refineries deliver job creation,  skill development,  industrial linkages,  and exchange rates stability. The shipping sector is handling much more volumes than they used to handle before now. Engineering capacity is strengthened.

     “Across Dangote, NNPC and the modular refineries, Nigeria has over one million barrels per day of installed domestic refining capacity. These benefits will multiply if we enable this capacity to operate fully. Across our businesses, the Dangote Group typically focuses on manufacturing, while accessing its distributors with the logistics required to deliver to their customers. Across Africa, we have over 10,000 trucks, who deliver products for our distributors. The same operating model applies to refining. We must all work together to renew distribution costs in order not to burden Nigeria’s energy efficiency.

     “Historically, marketers source products from abroad and supply the country via coastal storage terminals. Today there is a domestic alternative. We must therefore find an optimal split of off-take between trucks loading directly at the refinery, versus loading into vessels for transportation to various storage terminals. It does not make economic sense to move products by ship to a nearby coastal depot at additional cost when the same volume could have been  evacuated by trucks directly from the refinery.

    “We are also working  with  NPA and the NIMASA to find ways to reduce  coastal transport costs  as this adds up to the total product costs that end up being passed on to Nigerians. That said, Nigeria’s fighting potential is massive. We are in a place where we can build a refining hub that will process crude from Nigeria surrounding African countries and supply Nigerian commonwealths.

     “When we entered the cement sector, Nigeria produced less than two million tons per year. I was totally dependent on imports. Today, through visionary investment, timing execution, and government support, we have 2 million tons of capacity across Africa, and we’ll reach 60 million by next year. Nigeria is now a lead exporter of cement, and by 2027, we plan to export 500 million dollars worth of cement and clean cap annually. The same transformation is happening in refining

    “Nigeria is now a net exporter of refined petroleum products,  polypropylene and urea.  This is a historic turnaround.  And we’re not getting started.  Soon, the Dangote Refinery would be listed, giving Nigerians the opportunity to become shareholders in this national asset.

     “Given its potential,  this sector must be nurtured and protected.  The current import licensing regime,  where import licenses are issued without considering domestic supply, has exposed domestic refineries to unfair competition.  This is because most of this import comes from Russia  and  products from Russia are produced with crude that is priced 25 dollars per barrel, cheaper than Nigerian crude because of the sanctions.

     “So this in a way, it is almost like dumping, which hurts domestic refineries.  Aside from the crude for naira initiative, graciously introduced by Mr. President, local refineries grant the individual protection or incentives. ”

    Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, called on stakeholders in the petroleum industry to work collaboratively to reposition Nigeria’s downstream sector for sustainable growth, transparency, and innovation.

    He said the event’s theme, “Celebrating Our Successes, Confronting Our Challenges and Finding Solutions for the Petroleum Downstream Sector,” reflected the country’s need to celebrate progress while tackling long-standing challenges through collaboration and self-assessment.

    The Speaker, who was represented by his deputy, Rt Hon Benjamin Kalu, said the conference should serve as a defining moment in reshaping the downstream petroleum landscape.

    He noted that Nigeria is at a critical juncture in its industrialisation drive and commended President Bola Ahmed Tinubu for the ongoing reforms under his Renewed Hope Agenda, which, he said, are revitalising key sectors of the economy, including oil and gas.

    Abbas particularly lauded the operational take-off of the Dangote Refinery, describing it as a turning point in Nigeria’s quest for energy self-sufficiency.

    He said the anticipated emergence of other private refineries underscores the need for a functional and enabling environment that will encourage investment, promote efficiency, and reduce dependence on fuel imports.

    The Speaker recalled that much of the progress recorded in the petroleum sector was made possible by the landmark Petroleum Industry Act (PIA) 2021, which restructured the Nigerian National Petroleum Company (NNPC) into a commercial entity and established regulatory agencies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NMDPRA.

    He said the PIA has renewed investor confidence, promoted transparency, enhanced competition, and curbed oil theft and inefficiencies. Abbas reiterated that the National Assembly remains committed to crafting laws and policies that strengthen the downstream sector and ensure it contributes meaningfully to national development.

    Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Imo Ugochinyere, called for stronger collaboration among stakeholders to sustain ongoing reforms and build a transparent, self-reliant, and globally competitive downstream petroleum industry.

    He described the summit as more than a formal gathering, but a national dialogue aimed at repositioning the downstream petroleum sector as a driver of economic growth, innovation, and industrial development.

    According to him, the event, themed “Celebrating Our Successes, Confronting Our Challenges and Finding Solutions for the Petroleum Downstream Sector,” represents a commitment to transparency, accountability, and progress.

    He noted that the legislature, through the Petroleum Industry Act (PIA), had provided the legal foundation for reform, while the executive’s decision to remove fuel subsidies and liberalise the market restored efficiency and investor confidence.

    Ugochinyere commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their professionalism in implementing reforms and ensuring that Nigeria’s energy transition remained credible and investor-friendly.

    He also paid tribute to the Crude Oil Refiners Association of Nigeria (CORAN) for their courage and foresight in investing in local refining despite uncertainties that had kept some foreign investors on the sidelines.

    He described their efforts as proof that Nigerian enterprise and innovation could drive industrial transformation and job creation.

    Highlighting recent achievements in the downstream sector, Ugochinyere cited the expansion of Indorama Petrochemicals’ urea and fertilizer capacity to 2.8 million metric tonnes per annum, the scaling up of Waltersmith Modular Refinery in Imo State from 5,000 to 50,000 barrels per day, and the progress of the OPAC Refinery in Delta State.

    He said the Dangote Refinery, now Africa’s largest at 650,000 barrels per day, symbolises a new era of energy self-sufficiency and regional stability. According to him, these milestones, combined with over $13 billion in upstream investments in 2024, reflect renewed investor confidence in Nigeria’s oil and gas sector.

    The lawmaker also lauded the NUPRC for enforcing the Domestic Crude Oil Supply Obligation (DCSO), which mandates producers to prioritise crude supply to local refineries before exports.

    He said the policy marks a shift from rhetoric to action, ensuring local value addition, job creation, and energy independence.

    To deepen reforms, Ugochinyere announced plans by his committee to push new legislative measures granting local refineries the first right of refusal on crude allocations, streamlining regulatory processes, and introducing a Refinery Protection and Promotion Bill to classify refineries as strategic national assets.

    These, he said, would guarantee stability, protect investments, and promote growth across the value chain.

    On labour relations, Ugochinyere emphasised that no reform can succeed without industrial harmony, urging dialogue over disruptions in resolving disputes between industry players and unions.

    The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for sustained collaboration between the Executive and Legislature to address lingering challenges in Nigeria’s downstream petroleum and gas sectors.

    Ekpo said the continued reform and stability of the sector required policy consistency, private sector participation, and adherence to global best practices.

    He commended the Committee for convening the conference, describing it as evidence of the National Assembly’s leadership in promoting dialogue, transparency, and reform in the petroleum industry.

     “The theme of this year’s conference, ‘Celebrating Our Successes, Confronting Our Challenges, and Finding Solutions,’ is both timely and profound,” Ekpo said. “It invites us to reflect on how far we have come, acknowledge the challenges before us, and collectively provide sustainable solutions that secure the future of Nigeria’s downstream industry and ensure lasting progress.”

    The minister highlighted significant progress made in recent years, including the implementation of deregulation policies, market liberalisation, and renewed private investment in domestic refining and storage capacity.

    He said President Bola Ahmed Tinubu’s Renewed Hope Agenda had brought new urgency to reforms within the gas value chain, driven by the Decade of Gas initiative, which seeks to deepen domestic gas utilisation, expand infrastructure, and accelerate the transition to cleaner fuels such as Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (LPG).

    Read Also: UPDATED: CJN Kekere-Ekun hails Nigeria’s admission into global judges’s body 

     “These efforts are designed to enhance energy accessibility, reduce dependence on imported fuels, and create new economic opportunities for Nigerians, from households and small businesses to large-scale industries,” Ekpo noted.

    While celebrating these achievements, the minister acknowledged that persistent issues, such as infrastructure deficits, market vulnerabilities, supply chain inefficiencies, and regulatory uncertainty, continue to hinder progress.

     “Addressing these challenges requires sustained collaboration between the Executive and Legislature, underpinned by sound policy direction and consistent implementation,” he said. “It is also a call for enhanced private sector participation, investment in technology, and adherence to global practices.”

    Ekpo reaffirmed that the Ministry of Petroleum Resources (Gas) is focusing on three key priorities to drive reform and stability in the sector: accelerating gas infrastructure development, promoting gas utilisation, and implementing regulatory and investment reforms.

    According to him, ongoing projects such as the OB3 pipeline, the West African Gas Pipeline, and the Nigeria–Equatorial Guinea Gas Partnership are crucial to improving connectivity and supply reliability. He added that the Federal Government is also promoting the use of CNG and clean energy solutions for households, transport, and small businesses to ensure a just energy transition.

    The minister stressed that transforming Nigeria’s downstream and gas sectors cannot be achieved by government alone. “It requires the combined effort of the Legislature, the Executive, the private sector, and the Nigerian people,” he said.

    He urged stakeholders to remain committed to partnership, innovation, and accountability in driving reforms that will make energy more affordable, accessible, and sustainable for all Nigerians.

     “Together, we can build a downstream sector that truly supports industrialisation, creates jobs, and delivers prosperity across our nation,” he said.

    Ekpo once again commended the House Committee on Petroleum Resources (Downstream) for its vision and leadership in hosting the annual conference, which he described as critical to building consensus for the sustainable growth of the energy industry.

  • Dangote cautions against using ‘cry of monopoly’ to discourage indigenous investment

    Dangote cautions against using ‘cry of monopoly’ to discourage indigenous investment

    …refinery to be listed soon for Nigerians to be shareholders

    …can meet all of Nigeria’s demand for diesel, jet fuel, surplus for exports

    The Founder, Dangote Group, Alhaji Aliko Dangote, has cautioned against using the cry of monopoly to discourage indigenous investment and industrial growth in Nigeria, saying no one was prevented from investing in the country.

    Dangote said this at the 2025 Inaugural Annual Downstream Petroleum Week, organized by the House of Representatives Committee on Petroleum Resources (Downstream) on Monday.

    Represented by the Group Chief Strategy Officer at Dangote Industries Limited, Aliyu Suleman, he encouraged focus on policies that encourage productivity, innovation, and competition.

    Addressing the issue of monopoly with the refinery, he said, “Too many people with the means to build industries chose instead to invest abroad.  We decided from afar while adding little value to our economy.  We have chosen differently.  We have chosen to go to Nigeria. We have chosen to build here, to employ here, to produce here.  So let us not use the cry of monopoly to start from growth.  No one is prevented from investing. We welcome others to build their own refineries, and we will offer support in whatever way we can.”

    “Nigeria holds the natural competitive advantage in refining. We enjoy proximity to oil and gas supply. We should therefore work together to develop this sector.

    “We should work to enact and implement laws that will help this sector to prosper. Let us protect our industries and deliver the economic transformation this country deserves.”

    He said today, the Dangote Refinery can meet all of Nigeria’s demand for diesel and jet fuel and still have a surplus for exports.

    Dangote said that soon, the refinery would be listed on the stock exchange, giving Nigerians the opportunity to become shareholders of this national asset.

    READ ALSO; CREDICORP wins “Consumer Credit Access Company of the Year”

    He said Africa’s refining sector remains underdeveloped, both relative to its consumption and relative to the volume of crude that is produced in Africa.

    “While Europe and Asia refine over 95 % of their petroleum product, Africa refines only 40%. In sub-Saharan Africa, there are very few large functional refineries today. This is understandable because refining is capital-intensive, it is technologically complex, and often is a low-margin business.  So as a result, many entrepreneurs and governments have chosen to stay away.  But at Dangote, we are known for taking bold steps.  We are known for making large-scale investments to substitute imports and create value in the country.

    “Therefore, this is a challenge that we were happy to take. When it came to tackling the refining challenge, we decided to do it even though it was not easy. Building a world-class refinery anywhere in the world is a huge task. It is capital-intensive and very demanding. To build ours, we collected over 2,700 hectares of land, pumped 65 million cubic meters of sand to stabilize the site, installed over 250,000 foundation bars, and laid millions of meters of piping, cabling, and wiring. At peak, we had over 60,000 people on site, of which 50,000 were Nigerians.  We had these people working around the clock across hundreds of disciplines and nationalities.

    “Today, the Dangote refinery can meet all of Nigeria’s demand for diesel and jet fuel and still have surplus for exports, which can be used in valuable foreign exchange for Nigeria. The refinery can meet 90 % of Nigeria’s PMS requirements. This is based on the official consumption numbers of 50 million per day. Our views are the real consumption, perhaps more about 40 million, in which case we should be able to meet demand.

    “Across the world, major oil producers typically meet their petroleum product requirements through their own domestic refineries, not through imports. The United States, for example, imports only about 8 % of its petroleum product requirements. If you look at most of the major crude oil producers, you will see that they do not import more than 10 % of their petroleum products from the US. This is where Nigeria should be heading. And with the advent of the Dangote refinery and unbundling of the sector, we hope that we will get there.

    “At the Dangote Group, our strategy across all our businesses is to provide our customers with high-quality products at attractive prices.  Not just in the refinery, across all the businesses. Same in cement, sugar, and the rest.  Refined products from our refinery are of higher quality, and yet our prices are below import parity and below the average prices across most African countries.  Across Africa, PMS and diesel sell for around $1 per litre, net of a tax system of sorts.  But in Nigeria, the current price is below $0.60 per litre.

    “This is a huge cost benefit for Nigerians.  Even though the cost-benefit may not be immediately obvious, because before the advent of the Dangote refinery, subsidies were used to mask the real market price. Still, despite all this, we find ourselves in a situation where Nigeria imports petroleum products, while at the same time, Dangote refinery is exporting.  This is a paradox that we must address for this sector to grow.

    “Beyond energy security, domestic refining brought economic benefits.  Refineries deliver job creation, skill development, industrial linkages, and exchange rates. The shipping sector is handling much more volume than it used to handle before now. Engineering capacity is strengthened.

    “Across Dangote, NNPC, and the modular refineries, Nigeria has over one million barrels per day of installed domestic refining capacity. These benefits will multiply if we enable this capacity to operate fully. Across our businesses, the Dangote Group typically focuses on manufacturing, while accessing its distributors with the logistics required to deliver to their customers. Across Africa, we have over 10,000 trucks that deliver products for our distributors. The same operating model applies to refining. We must all work together to reduce distribution costs in order not to burden Nigeria’s energy efficiency.

    “Historically, marketers source products from abroad and supply the country via coastal storage terminals. Today, there is a domestic alternative. We must therefore find an optimal split of off-take between trucks loading directly at the refinery, versus loading into vessels for transportation to various storage terminals. It does not make economic sense to move products by ship to a nearby coastal depot at additional cost when the same volume could have been evacuated by trucks directly from the refinery.

    “We are also working with  NPA and the NIMASA to find ways to reduce coastal transport costs, as this adds up to the total product costs that end up being passed on to Nigerians. That said, Nigeria’s fighting potential is massive. We are in a place where we can build a refining hub that will process crude from Nigeria, surrounding African countries, and supply the Nigerian commonwealths.

    “When we entered the cement sector, Nigeria produced less than two million tons per year. I was totally dependent on imports. Today, through visionary investment, timing execution, and government support, we have 2 million tons of capacity across Africa, and we’ll reach 60 million by next year. Nigeria is now a leading exporter of cement, and by 2027, we plan to export 500 million dollars’ worth of cement and clean cap annually. The same transformation is happening in refining

    “Nigeria is now a net exporter of refined petroleum products, polypropylene, and urea.  This is a historic turnaround.  And we’re not getting started.  Soon, the Dangote Refinery would be listed, giving Nigerians the opportunity to become shareholders in this national asset.

    “Given its potential, this sector must be nurtured and protected.  The current import licensing regime, where import licenses are issued without considering domestic supply, has exposed domestic refineries to unfair competition.  This is because most of this import comes from Russia, and products from Russia are produced with crude that is priced at 25 dollars per barrel, cheaper than Nigerian crude because of the sanctions.

    “So this in a way, it is almost like dumping, which hurts domestic refineries.  Aside from the crude for naira initiative, graciously introduced by Mr. President, local refineries grant the individual protection or incentives. ”

    Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen called on stakeholders in the petroleum industry to work collaboratively to reposition Nigeria’s downstream sector for sustainable growth, transparency, and innovation.

    He said the event’s theme, “Celebrating Our Successes, Confronting Our Challenges and Finding Solutions for the Petroleum Downstream Sector,” reflected the country’s need to celebrate progress while tackling long-standing challenges through collaboration and self-assessment.

    The Speaker, who was represented by his deputy, Rt Hon Benjamin Kalu, said the conference should serve as a defining moment in reshaping the downstream petroleum landscape.

    He noted that Nigeria is at a critical juncture in its industrialization drive and commended President Bola Ahmed Tinubu for the ongoing reforms under his Renewed Hope Agenda, which, he said, are revitalizing key sectors of the economy, including oil and gas.

    Abbas particularly lauded the operational take-off of the Dangote Refinery, describing it as a turning point in Nigeria’s quest for energy self-sufficiency.

    He said the anticipated emergence of other private refineries underscores the need for a functional and enabling environment that will encourage investment, promote efficiency, and reduce dependence on fuel imports.

    The Speaker recalled that much of the progress recorded in the petroleum sector was made possible by the landmark Petroleum Industry Act (PIA) 2021, which restructured the Nigerian National Petroleum Company (NNPC) into a commercial entity and established regulatory agencies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NMDPRA.

    He said the PIA has renewed investor confidence, promoted transparency, enhanced competition, and curbed oil theft and inefficiencies. Abbas reiterated that the National Assembly remains committed to crafting laws and policies that strengthen the downstream sector and ensure it contributes meaningfully to national development.

    Chairman of the House Committee on Petroleum Resources (Downstream), Hon. Ikenga Imo Ugochinyere, called for stronger collaboration among stakeholders to sustain ongoing reforms and build a transparent, self-reliant, and globally competitive downstream petroleum industry.

    He described the summit as more than a formal gathering, but a national dialogue aimed at repositioning the downstream petroleum sector as a driver of economic growth, innovation, and industrial development.

    According to him, the event, themed “Celebrating Our Successes, Confronting Our Challenges and Finding Solutions for the Petroleum Downstream Sector,” represents a commitment to transparency, accountability, and progress.

    He noted that the legislature, through the Petroleum Industry Act (PIA), had provided the legal foundation for reform, while the executive’s decision to remove fuel subsidies and liberalise the market restored efficiency and investor confidence.

    Ugochinyere commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their professionalism in implementing reforms and ensuring that Nigeria’s energy transition remained credible and investor-friendly.

    He also paid tribute to the Crude Oil Refiners Association of Nigeria (CORAN) for their courage and foresight in investing in local refining despite uncertainties that had kept some foreign investors on the sidelines.

    He described their efforts as proof that Nigerian enterprise and innovation could drive industrial transformation and job creation.

    Highlighting recent achievements in the downstream sector, Ugochinyere cited the expansion of Indorama Petrochemicals’ urea and fertilizer capacity to 2.8 million metric tonnes per annum, the scaling up of Waltersmith Modular Refinery in Imo State from 5,000 to 50,000 barrels per day, and the progress of the OPAC Refinery in Delta State.

    He said the Dangote Refinery, now Africa’s largest at 650,000 barrels per day, symbolises a new era of energy self-sufficiency and regional stability. According to him, these milestones, combined with over $13 billion in upstream investments in 2024, reflect renewed investor confidence in Nigeria’s oil and gas sector.

    The lawmaker also lauded the NUPRC for enforcing the Domestic Crude Oil Supply Obligation (DCSO), which mandates producers to prioritise crude supply to local refineries before exports.

    He said the policy marks a shift from rhetoric to action, ensuring local value addition, job creation, and energy independence.

    To deepen reforms, Ugochinyere announced plans by his committee to push new legislative measures granting local refineries the first right of refusal on crude allocations, streamlining regulatory processes, and introducing a Refinery Protection and Promotion Bill to classify refineries as strategic national assets.

    These, he said, would guarantee stability, protect investments, and promote growth across the value chain.

    On labour relations, Ugochinyere emphasised that no reform can succeed without industrial harmony, urging dialogue over disruptions in resolving disputes between industry players and unions.

    The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, called for sustained collaboration between the Executive and Legislature to address lingering challenges in Nigeria’s downstream petroleum and gas sectors.

    Ekpo said the continued reform and stability of the sector required policy consistency, private sector participation, and adherence to global best practices.

    He commended the Committee for convening the conference, describing it as evidence of the National Assembly’s leadership in promoting dialogue, transparency, and reform in the petroleum industry.

    “The theme of this year’s conference, ‘Celebrating Our Successes, Confronting Our Challenges, and Finding Solutions,’ is both timely and profound,” Ekpo said. “It invites us to reflect on how far we have come, acknowledge the challenges before us, and collectively provide sustainable solutions that secure the future of Nigeria’s downstream industry and ensure lasting progress.”

    The minister highlighted significant progress made in recent years, including the implementation of deregulation policies, market liberalisation, and renewed private investment in domestic refining and storage capacity.

    He said President Bola Ahmed Tinubu’s Renewed Hope Agenda had brought new urgency to reforms within the gas value chain, driven by the Decade of Gas initiative, which seeks to deepen domestic gas utilisation, expand infrastructure, and accelerate the transition to cleaner fuels such as Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (LPG).

    “These efforts are designed to enhance energy accessibility, reduce dependence on imported fuels, and create new economic opportunities for Nigerians, from households and small businesses to large-scale industries,” Ekpo noted.

    While celebrating these achievements, the minister acknowledged that persistent issues, such as infrastructure deficits, market vulnerabilities, supply chain inefficiencies, and regulatory uncertainty, continue to hinder progress.

    “Addressing these challenges requires sustained collaboration between the Executive and Legislature, underpinned by sound policy direction and consistent implementation,” he said. “It is also a call for enhanced private sector participation, investment in technology, and adherence to global practices.”

    Ekpo reaffirmed that the Ministry of Petroleum Resources (Gas) is focusing on three key priorities to drive reform and stability in the sector: accelerating gas infrastructure development, promoting gas utilisation, and implementing regulatory and investment reforms.

    According to him, ongoing projects such as the OB3 pipeline, the West African Gas Pipeline, and the Nigeria–Equatorial Guinea Gas Partnership are crucial to improving connectivity and supply reliability. He added that the Federal Government is also promoting the use of CNG and clean energy solutions for households, transport, and small businesses to ensure a just energy transition.

    The minister stressed that transforming Nigeria’s downstream and gas sectors cannot be achieved by the government alone. “It requires the combined effort of the Legislature, the Executive, the private sector, and the Nigerian people,” he said.

    He urged stakeholders to remain committed to partnership, innovation, and accountability in driving reforms that will make energy more affordable, accessible, and sustainable for all Nigerians.

    “Together, we can build a downstream sector that truly supports industrialization, creates jobs, and delivers prosperity across our nation,” he said.

    Ekpo once again commended the House Committee on Petroleum Resources (Downstream) for its vision and leadership in hosting the annual conference, which he described as critical to building consensus for the sustainable growth of the energy industry.

  • Dangote on my mind (IV)

    Dangote on my mind (IV)

    Long before refined petroleum products began pouring out of the Dangote refinery, I was sure that whenever that happened, the Nigerian economy was going to receive a massive shot in the arm. I was sure that the refinery was going to change Nigeria, permanently and profoundly. After all, the planned scale of the enterprise was so large that it could take care of local demands. Not only that, it was large enough to have a great deal left over for export. If that was not a game changer, nothing else was going to clinch it. The reality of what has happened in the last two years has however clipped the wings of my soaring expectations, bringing me back to reality with a massive bump.

    What I failed to add to my calculation of reality was that whilst opening the refinery was a positive, life changing event for the vast majority of Nigerians, it was bound to be seen in a negative and altogether unwelcome light. After all, a small but all powerful minority were profiting from the chaos which had governed our fuel supply mechanisms for half a century and counting. It is now clear that not taking their reaction into consideration was going to fatally screw up the equation of fuel supply in the country, even as high grade fuel was being produced right here on our shores.

    The first indication of reality was that long after the refinery was commissioned, its promised products were not available on the fuel thirsty streets of Nigeria. This was not a spontaneous reaction but a contrived response to the potential availability of enough fuel to drive the nation’s economy. The actors in that area of our economy had decided to deprive our nubile waist of decorative beads in favour of total strangers.

    The largest single train refinery in the world stood ready for business but crude oil, its basic raw material, was conspicuously missing. And this was, at least on paper, in a country which was still one of the largest producers of crude oil in the world. One would have thought that all that was required was to allot the required amount of fuel to Dangote in a move that was going to replace the subsidy that we had been told was being paid on every litre of petrol that was consumed in the land. It was soon clear that the NNPC had mortgaged our oil reserves and was in no position to sell oil to Dangote. The refinery was open for business but there was no local crude available, tantamount to our farmers sending their yams to Lagos to earn hard cash whilst subsisting on part of their scraggy cocoyam harvest. Dangote had to go halfway round the world to bring in the crude, large quantities of which were available in his backyard. What economic sense did it make to source for crude in turgid dollars but sell the refined products in flaccid Naira? None at all is the right answer. The Dangote refinery got going at last but the cost of buying petrol in Nigeria was hardly dented as it competed with rotten dollar denominated fuel which was still being bought in strange lands and imported into Nigeria. The leeches which had been sucking us dry for several decades, ignoring the evidence of their eyes, were insistent in their desire to ensure that it was to be business as usual. They were able to do this because they had friends in high places. After Dangote was denied the benefit of access to local crude, some standards organisation, without the benefit of any analytical instrumentation declared with faux authority that the fuel produced by Dangote was laden with high concentrations. of sulphur. This was a clear attempt to play on the fears of Nigerians that locally produced materials of any kind were inferior to imported varieties. Dangote, who had the authority of a fully functional laboratory behind him proved them wrong. These difficulties notwithstanding, Dangote began to eat away at the cost of fuel purchased from our forecourts. Availability was also increased to such an extent that fuel queues were consigned to the past. For the first time in fifty years fuel was even available over the Christmas period. To be sure, petrol was still close to five times more expensive in Naira terms than before but the cost was coming down perceptibly in what was turning out to be a win – win situation or, could be if properly managed.

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    But, the situation could not be properly managed. When it became apparent that Dangote was getting on top of the situation, news began to filter out that the government owned refineries which had been silently rotting away for a couple of decades, had in the miraculous manner of the deceased Lazarus been brought back to life after the injection of massive amounts of dollars. We were informed that the refineries had undergone various tests which confirmed that they were so close to resuming their functions as to make no difference. It was to be only a matter of a few months or even weeks before Dangote was presented with a worthy competitor thereby preempting the creation of an unwanted Dangote monopoly in the oil sector. A year after these cheering news were received, the refineries are as silent as the sepulchres from which they were said to have been delivered and Dangote is still the only refinery left standing.

    I was sure that a decisive corner had been turned when a year ago, it was announced that Dangote could pay for his crude supplies in Naira. True, the volume of crude supplied under this arrangement was substantially short of capacity, it was however a giant step in the right direction but the mode of this transaction was not transparent as as some dollars were smuggled into the prevailing equation but still it was better than nothing and in any case, the cost of fuel at the pump continued to inch downwards. Hope in the bright future of fuel availability broke out like a rash, to the evident satisfaction of a lot of us. That outbreak has however been shown to be premature as other challenges were raised against Mr. Dangote and his massive and ambitious project.

    In the dark winter of our fuel discontent, a group of people had risen to insert themselves into the fuel supply chain. They had built massive storage facilities which received imported fuel for subsequent distribution throughout the country. They did not add a jot of value to the supply chain but were nevertheless indispensable. They were like the slave traders of old who took advantage of being situated on the coast to buy slaves from the interior to sell them on to the Europeans at great profit to themselves. Their descendants still exist among us for all they are now worth. The direction of trade has now been reversed with fuel being moved from the ports to the hinterland. Unfortunately, the reasoning remains the same, the only difference is the nature of the merchandise. Then, it was live human beings. Now, it is refined petroleum.

    To pursue the slave trade analogy to its logical conclusion. Slaves were assembled at depots all along the coasts from where the slaves were loaded into ships reeking of human misery and taken across the Atlantic Ocean,  to slavery in the Americas and the Caribbean region. Now, old and old ricketty petrol tankers drive up to be loaded with fuel for transport to all parts of the country. These rent seeking middlemen, llike their forefathers who resisted the abolition of the slave trade with all their might are also determined to protect their privileges to the detriment of the rest of us.

  • Understanding NUPENG’s resistance to Dangote’s monopoly

    Understanding NUPENG’s resistance to Dangote’s monopoly

    • By Shola Onimago

    In the heart of Nigeria’s economic engine room, a quiet but consequential war is being fought, a war not of guns or politics, but of control. On one side stands the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the formidable labour body representing thousands of oil and gas workers. On the other side is the Dangote Group, led by Africa’s richest man, Aliko Dangote, whose 650,000 barrels-per-day refinery is poised to redefine, or perhaps dominate, Nigeria’s petroleum landscape.

    This is no ordinary industrial dispute. It is a struggle over the soul of Nigeria’s energy economy, over the balance between private capital and public interest, and the preservation of workers’ rights in a sector too vital to be monopolised.

    NUPENG’s stand is that rights are non-negotiable. At the heart of the standoff lies the alleged refusal of the Dangote Refinery to recognise unionism among its workforce. NUPENG accuses the company of blocking union activities, intimidating potential members, and breaching Nigeria’s labour laws that guarantee the right to freedom of association.

    Union officials claim that efforts to register refinery workers and tanker drivers under NUPENG have been frustrated. Workers reportedly face subtle threats for aligning with labour movements, while management insists that union membership “is a personal choice.”

    Recall that one of Nigeria’s foremost lawyers, Femi Falana, SAN, once said that any company or employer who denies workers this freedom is acting outside the law and against the democratic spirit of the nation

    For NUPENG, anything that contradicts this position is untenable. Under Nigeria’s Trade Union Act (Cap T14, LFN 2004), all junior workers in an organisation are automatically deemed members of the appropriate trade union unless they opt out in writing. Section 40 of the Constitution further guarantees workers the right to freely associate.

    NUPENG’s President, Prince Williams Akporeha, has vowed that the union will not fold its arms while a new corporate empire attempts to roll back decades of hard-won workers’ rights.

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    The bigger fear is that this is monopoly in the making. Beyond the question of union rights lies a larger fear, the growing concentration of power in Nigeria’s oil sector. With its massive refining capacity, expansive logistics network, and over 4,000 CNG-powered tankers, the Dangote Group now controls almost every link in the petroleum value chain: refining, storage, distribution, and retail.

    NUPENG warns that this structure represents the embryo of a private monopoly. The union fears that if unchecked, Dangote could replicate his dominance in cement and sugar industries where competition has virtually disappeared and prices remain high despite earlier promises of affordability.

    “We cannot allow a repeat of the cement story in oil,-Afolabi Olawale, NUPENG General Secretary. Dangote dismisses such fears as unfounded, arguing that over 30 other refinery licences have been issued by government, and that his refinery is meant to complement, not dominate, the market.

    Yet the optics tell a different story. The refinery’s scale and vertical integration have already created a structural imbalance that smaller marketers and tanker owners fear they cannot survive.

    Echoes from cement and sugar industries are cautionary tales. This is not unfamiliar territory for Nigerians. When Dangote Cement rose to prominence in the early 2000s, it was celebrated for reducing import dependence. But as competitors faded, the market narrowed and prices climbed.

    The same story played out in the sugar industry, where government import restrictions designed to encourage local production instead entrenched Dangote’s dominance, leaving smaller producers struggling.

    The lesson, according to NUPENG, is clear: Monopoly, whether public or private, always comes at a cost. Today, the risk is that Nigeria’s newly deregulated oil sector could be quietly reconsolidated under one private empire.

    Labour unrest and market anxiety

    The standoff has already triggered shockwaves across the industry. In early September 2025, NUPENG threatened a nationwide strike, accusing the Dangote Refinery of “anti-labour practices.” The move, backed by PENGASSAN, raised fears of fuel scarcity and price instability.

    The DSS and the Federal Ministry of Labour intervened, brokering a temporary truce. A Memorandum of Understanding (MoU) was signed, guaranteeing workers the right to unionise within a given period.

    Yet many within the labour movement doubt the sincerity of Dangote’s concession, seeing it as a temporary appeasement to buy time until his market dominance is irreversible.

    Meanwhile, smaller marketers report restricted access to supply, delayed allocations, and rising logistics costs, symptoms, they say, of an emerging one-gate control over Nigeria’s oil economy.

    At stake are not just workers’ rights or business interests, but the rule of law itself. If the Dangote Group continues to limit union activity or dominate market access, it risks violating Nigeria’s trade, competition, and labour laws.

    The Federal Competition and Consumer Protection Act (FCCPA, 2019) prohibit monopolistic practices that “prevent, restrict, or distort competition.” Any conduct that “amounts to abuse of a dominant position” can attract penalties, including forced divestment or fines.

    No nation deregulates only to replace a public monopoly with a private one. To do so would betray the very philosophy of a free and fair market economy.

    It is within this context that I join NUPENG and all advocates of economic justice in calling on President Bola Ahmed Tinubu to act decisively. The Tinubu administration has championed market reforms, including fuel subsidy removal and downstream liberalisation. Yet those reforms must not pave the way for private monopolisation disguised as efficiency.

    The federal government must enforce competition laws under FCCPC and NMDPRA frameworks; Protect small and medium marketers from exclusionary practices; Ensure full recognition of NUPENG’s union rights at the Dangote Refinery as well as diversify refinery licensing and crude access, preventing any single entity from controlling the entire value chain.

    President Tinubu must look beyond the excitement of a local refinery and see the long-term danger of allowing a single titan to dictate prices, access, and opportunity.

    At stake if left unchecked is that Dangote’s dominance could rewrite Nigeria’s economic DNA, shifting the nation from public monopoly to private empire. Workers could lose their bargaining power, smaller firms could collapse, and government itself might one day negotiate not with an industry, but with an individual.

    If fairness and competition prevail, Nigeria’s deregulated market will thrive. But if silence and complicity endure, the nation may soon find itself in a refined version of economic feudalism, where the refinery becomes the new fortress of power.

    NUPENG’s battle with Dangote, therefore, seems not just a union struggle; it is a national test of will.

    Can Nigeria build a capitalist economy that is competitive yet compassionate, dynamic yet democratic? In an era where power increasingly resides in private hands, NUPENG stands battered but unyielding as the last wall between monopoly capital and the Nigerian worker. The government must choose between an open market that empowers millions or a private monopoly that serves a few; between workers’ dignity- or corporate dominance; between a refinery for the nation or a nation at the mercy of one refinery. History, as always, will remember who stood where.

    •Onimago SAN, an Energy Law Consultant and Public Affairs Commentator writes from Lagos.

  • Dangote, “Owners of Nigeria” and the rest of us

    Dangote, “Owners of Nigeria” and the rest of us

    Sir: It was assumed that the launch of Dangote’s $20-billion refinery would be a breath of fresh air – the long-awaited project to finally free Nigeria from decades of fuel import dependency and the grip of vested interests. Right? Wrong.

    For decades, successive governments lavished billions on turnaround maintenance of our comatose refineries, yet not one could produce a drop of fuel for Nigerians. We became a crude oil producer that imported nearly all its refined products- a national disgrace sustained by those who profited from the dysfunction – “The owners of Nigeria”.

    The Dangote Refinery was supposed to change that. But since its birth, it has faced chaos after chaos. Skirmishes with the NNPC, friction with international oil companies, pushback from petroleum marketers, tanker drivers, depot owners, and now, open confrontation with PENGASSAN. Behind every one of these confrontations lies a common denominator: the owners of Nigeria who have held this country by the jugular for decades. The owners who are furious that the removal of fuel subsidy took food off their greedy tables. The owners who would rather see the country burn than lose control of the taps that enrich them.

    Yet, for ordinary Nigerians, the Dangote Refinery offered hope; a promise that gave us a relatively cheaper, more stable fuel and gas supply. But these “owners of Nigeria” have refused. They have sworn that Nigerians must never get relief. It is over their dead bodies.

    Check this: in the aviation sector, jet fuel reportedly accounts for nearly 40% of operational costs. Dangote reportedly offered to sell Jet A1 at N980 per litre, down from the N1,240 the cabal currently sells. That’s a 26% reduction, a direct saving that could have made air travel cheaper for millions. The response from the cabal? Rejection, reportedly. They would rather Nigerians continue to bleed.

    Or take the case of LPG, i.e., cooking gas. Nigerians currently pay over N1,000 per kg. Dangote reportedly offered to sell at N800 per litre. Again, the “owners of Nigeria” revolted, reportedly. They simply cannot stand the thought of affordability for the masses, not when it cuts into their illicit profits.

    And now the queues are back. One kg of gas is now selling between N1500-N3000. Not because of subsidy delays or foreign exchange shortages, but because of deliberate sabotage. A manufactured scarcity by vested interests holding the country hostage under the guise of industrial action. PENGASSAN’s strike may be framed as a workers’ struggle, but its timing and context tell a deeper story, a story that reeks of orchestration. At some point, Nigerians must collectively say ‘Enough is enough’.

    The federal government must act more when private interests cripple national progress. The Dangote Refinery is not just a private venture; it is a national asset, a strategic investment that could redefine our economic independence.

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    The government must make it clear that the refinery’s success is in the national interest. No individual or group should be allowed to weaponise supply chains against Nigerians.

    Regulators, too, must rise to their responsibility. The FCCPC should investigate any evidence of collusion or cartel behaviour within the oil and gas distribution chain. It should be made clear that industrial action cannot become a weapon of economic sabotage. There must be accountability for actions that deliberately inflict hardship on millions of Nigerians.

    Nigeria stands at a crossroads. We can either protect the few who profit from dysfunction or empower those who build solutions. The Dangote Refinery, with all its imperfections, represents the latter. To allow cabals to frustrate that progress is to choose national stagnation over renewal.

    What is at stake here is not just fuel or gas; it is the soul of Nigeria’s economic independence. If we cannot protect progress when it comes, then we do not deserve it. It is time for the government, regulators, and citizens to draw a line.

    Never again should the selfish interests of a few override the collective good of over 200 million Nigerians.

    •Chiechefulam Ikebuiro, chiechefulamikebuiro@gmail.com

  • Dangote, PENGASSAN crisis: Youth coalition protest in Ibadan

    Dangote, PENGASSAN crisis: Youth coalition protest in Ibadan

    Thousands of students and youths from the Southwest region under the aegis of Coalition of Yoruba Students and Youth Movement (COYSYM) on Tuesday staged a massive protest in Ibadan, the Oyo State capital, to tackle what they described as unpatriotic attacks and orchestrated blackmail against Dangote Refinery.

    The students who commended President Bola Tinubu for the courage in the removal of fuel subsidy fingered trade unions in the oil and gas sector including Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) as been behind the attack on the nation’s private Refinery.

    The group also said it has uncovered, through credible information, that PENGASSAN, NUPENG, and DAPPMAN, in collaboration with certain international oil companies and traders, are deliberately instigating disruptions to frustrate Dangote Refinery.

    It added that there are multiple attempts to obstruct its operations and undermine its credibility, noting that the acts of economic sabotage must not be tolerated.

    COYSYM is a united front of all Yoruba Indigenous Youth and Student Organisations across Nigeria, including the National Association of Oduduwa Students (NAOS), Yoruba Council Worldwide, and the Coalition of Osun State Youth and Students Association (COSSYA), among others.

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    The protesters dressed in customised t-shirts and fez caps defied the early morning rain to assemble at the Iwo Road underbridge, carried banners, placards, and sang solidarity songs to enlighten members of the public on the threat against the benefit of the refinery in transforming the oil and gas sector.

    Some of the inscriptions on the placards read, “Government supports Dangote Refinery Now. Support Dangote, Save Nigerians. Stop Sabotage. Support Dangote. Dangote Refinery is Nigeria’s Pride”, “PENGASSAN: Nigeria’s alpha and omega, stop holding Nigeria hostage. Free Dangote,”, Our oil, our right, support Dangote”.

    Others read, “Don’t kill Dangote Refinery”, “Dangote Refinery is the pride of Nigeria”, “We kick against the anti-masses policies of PENGASSAN, DAPPMAN and NUPENG. Stop sabotaging fuel supply in Nigeria. Let the masses breathe”, “PENGASSAN, DAPPMAN and NUPENG: Stop causing problems in the oil sector in Nigeria”, among others.

    The protest, which led to a heavy traffic jam at the Iwo Road end of the Ibadan-Ife Expressway, saw many commuters stranded for minutes.

    Traffic officers, including officials of the Federal Road Safety Corps (FRSC), Nigeria Police, among others, had a hectic time controlling traffic as commuters trying to use the road inward into the capital city suffered mild delays.

    Addressing the massive crowd, the National President, Comrade Benedict Adetunji, urged the Federal Government to prioritise the allocation of crude oil to all Nigerian-owned refineries at fair and competitive rates.

    He said the group embarked on the protest rally out of a deep sense of patriotism and unwavering commitment to Nigeria’s economic stability.

    He also called for the stoppage of crude to foreign refineries at cheaper prices than to local refineries, as well as an end to the importation of petroleum products, and support for domestic refining.

    Reading the position paper while addressing the crowd, Comrade Adetunji said, “We bring you warm and revolutionary greetings from the Coalition of Yoruba Students and Youth Movement (COYSYM) a united front of all Yoruba Indigenous Youth and Student Organisations across Nigeria, including the National Association of Oduduwa Students (NAOS), Yoruba Council Worldwide, and the Coalition of Osun State Youth and Students Association (COSSYA), among others.

    “We are compelled by the negative and anti-national activities of PENGASSAN, NUPENG, and DAPPMAN to present this position paper today, 7th October 2025, in Ibadan, Oyo State, the political headquarters of the Southwest, out of our deep sense of patriotism and unwavering commitment to Nigeria’s economic stability.

    “First and foremost, we commend Your Excellency, President Asiwaju Bola Ahmed Tinubu, for your bold and visionary leadership, particularly your courage in the removal of fuel subsidy, which has brought remarkable improvement to fuel supply and market stability across the nation. Your steadfast drive for industrialisation and economic recovery remains commendable.

    “However, we express our deep concern over the recent unpatriotic attacks and orchestrated blackmail by PENGASSAN, NUPENG, and DAPPMAN against the Dangote Refinery, a world-class facility that stands as the pride of Nigeria and the entire African continent. This refinery, situated within our Yoruba region, represents a symbol of industrial hope, self-reliance, and national rebirth. It deserves support and protection, not sabotage.

    “Your Excellency, the survival and success of Dangote Refinery is crucial to achieving your administration’s vision of making Nigeria a production-driven economy rather than one dependent on importation. No nation grows by importing what it can produce. The only path to true economic revival lies in increasing our export capacity and reducing unnecessary importation.

    “For decades, PENGASSAN, NUPENG, and DAPPMAN have crippled Nigeria’s oil sector through incessant strikes, policy manipulations, and industrial sabotage. Their leadership has placed personal and corporate interests above national progress. These unions, often aligned with import cartels, have benefited from fuel importation at the expense of local refining. Their existence, in its current form, has done more harm than good to Nigeria’s economy.

    “As the sons and daughters of the Yoruba Nation, and as the hosts of the Dangote Refinery, we call on Your Excellency, our leader and father, to intervene decisively. Let us not allow these saboteurs to destroy what has taken decades and billions of naira to build. Dangote Refinery is not just a private investment; it is a national asset capable of providing employment, stabilizing fuel supply, and saving billions in foreign exchange.”

    The group “urges the federal government to prioritise the allocation of crude oil to all Nigerian-owned refineries at fair and competitive rates.

    “Stop the sale of crude to foreign refineries at cheaper prices than to our local refineries.

    “End the importation of petroleum products and support domestic refining.

    “A historical lesson must guide us: in the past, Nigeria’s textile industry was the second-largest employer after the Federal Government, but reckless importation policies led to its total collapse. Even in advanced economies like the United States, President Donald Trump introduced high import tariffs to protect domestic industries and jobs. Nigeria must do the same to protect its strategic sectors.

    “We have also uncovered, through credible information, that PENGASSAN, NUPENG, and DAPPMAN, in collaboration with certain international oil companies and traders such as Trafigura, Vitol, Glencore, BP, and Shell, are deliberately instigating disruptions to frustrate Dangote Refinery. Reports indicate multiple attempts to obstruct its operations and undermine its credibility. These are acts of economic sabotage that must not be tolerated.

    “Your Excellency, Alhaji Aliko Dangote must not be made to regret his patriotic investment in Nigeria. Rather, he deserves national protection and encouragement. His contributions toward industrialisation, employment generation, and economic diversification embody your Renewed Hope Agenda.

    “As Yoruba students and youth, known for our love, unity, and hospitality, we appeal passionately to Your Excellency and all Yoruba leaders, Royal Fathers, traditional rulers, and stakeholders to rise in defence of Dangote Refinery and reject all agents of economic regression.

    “Nigeria will only rise when Nigerians believe in and support Nigeria. No foreign power will build this nation for us. The time has come to reward patriotism and punish sabotage. We remain committed to a better, stronger, and self-sufficient Nigeria.”

  • Dangote, Ethiopia PM break ground on $2.5 billion fertiliser plant

    Dangote, Ethiopia PM break ground on $2.5 billion fertiliser plant

    A new chapter in Africa’s industrial story opened as Aliko Dangote, President, Dangote Group, led the groundbreaking of a $2.5 billion fertiliser plant in Gode, Ethiopia.

    The project, a partnership between Dangote Group and Ethiopian Investment Holdings (EIH), with a production capacity of three million metric tonnes of urea annually, is expected to become one of the world’s largest fertiliser complexes.

    Strategically located in Ethiopia’s South-East region, it will leverage the country’s abundant natural gas resources from the Hilal and Calub reserves to boost agricultural productivity, create jobs and enhance food security across the Horn of Africa.

    Speaking at the ceremony, Ethiopia’s Prime Minister, Abiy Ahmed Ali, described the fertiliser project as more than just industrial progress, stressing that it symbolises shared responsibility, cooperation and peace. He said the project reflects Ethiopia’s commitment to harnessing opportunities and elevating its presence on the global stage.

     “They embody our shared responsibility to harness opportunities, strengthen cooperation and promote peace. Hence, I call upon all Ethiopians to continue mobilising in unity for progress. By doing so, we elevate Ethiopia’s presence on the global stage in a way that honours the true spirit of our Ethiopian identity,” PM Abiy said.

    Dangote commended Ethiopian Prime Minister Abiy Ahmed Ali and his cabinet for reforms and economic liberalisation that have opened key sectors to private investments and positioned Ethiopia as one of Africa’s most attractive destinations for global investors. He lauded the government’s investment in infrastructure, including transport, energy and the Grand Ethiopian Renaissance Dam, which he described as a foundation for the country’s industrialisation.

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     “This partnership with Ethiopian Investment Holdings represents a pivotal moment in our shared vision to industrialise Africa and achieve food security across the continent. We are committed to bringing our decades of experience in large-scale industrial projects to ensure this venture becomes a cornerstone of Ethiopia’s industrial transformation,” ” Dangote said.

    He disclosed that the Gode project marks just the beginning, with plans to expand into the production of other fertilisers such as ammonium nitrate, ammonium sulphate, NPK and calcium ammonium nitrate, positioning Ethiopia as a regional hub for fertiliser production. He predicted that within five years, Ethiopia could become Africa’s leading agricultural nation.

    This investment is Dangote Group’s second major project in Ethiopia. Its cement subsidiary has operated a 2.5Mta plant in Mugher for more than a decade, with an additional $400 million committed to doubling its capacity.

    Across Africa, Dangote said the Group’s strategy is guided by the belief that “only Africans can develop Africa,” with a focus on manufacturing to reduce dependence on imports. He highlighted the Group’s role in transforming Nigeria into a net exporter of petroleum products cement and fertiliser, through its refinery, cement plants, and fertiliser expansion, which is set to become the largest in the world at nine million metric tonnes per annum.

     “These investments have already changed Nigeria’s story. We’ve moved from being import-dependent to becoming self-sufficient and even exporters of cement, fertiliser and petroleum products. Our mission is to help other African nations achieve the same transformation.

    We strive to make African countries become self sufficient in the production of those goods whose necessary raw materials are readily available. We have demonstrated that feat in the cement sector where many African countries are now net exporters of cement through our investments. We are ready and happy to work with more African countries to drive their industrialization plans and aspirations,” Dangote noted.

    He described the Gode project as a “new dawn,” the first time a private African investor is partnering with an African country to build an industrial complex of this scale. “We understand Africa, its challenges, its opportunities and its potentials. And we believe only Africans can truly transform Africa,” he said.

     “Our mission at Dangote Group is to lead Africa’s industrial transformation,” he said. “This project marks the first time a private African investor is partnering with an African country to build such an industrial complex.”

    He hinted at the establishment of polypropylene bagging plant to boost the industry in Ethiopia.

    Dangote expressed gratitude to financial institutions including Afreximbank, Africa Finance Corporation, Access Bank, First Bank, Zenith Bank, and other indigenous banks for supporting the project.

    Meanwhile, the President of the Somali Region, Mustafa Omar, described Aliko Dangote as “the anchor investor Ethiopia has been looking for.”

    He noted that Dangote is not only a trusted investor but also one who is highly appreciated by both Ethiopians and Africans at large.

    The Chairman of the Nigerian Exchange Group (NGX), Dr Umaru Kwairanga, has praised Ethiopia’s leadership for its economic strides and voiced optimism about stronger economic relations between Nigeria and Ethiopia.

    Speaking on the new fertiliser complex, Dr Kwairanga described it as a “gigantic project befitting of Aliko Dangote’s vision and execution capacity.”

    He noted that the African industrialist had consistently demonstrated a strong commitment to advancing the continent’s self-sufficiency and development.

    The event was attended by senior Ethiopian government officials, industry leaders, and financiers.

    Across Africa, the Group’s industrial story is expanding. Dangote Cement alone has a total installed capacity of 55 million tonnes per annum across 11 countries. The company also built the world’s largest single-train refinery in Nigeria, with a capacity of 650,000 barrels per day, alongside a one million metric tonne polypropylene plant. Its fertiliser arm, which started at three million metric tonnes, is being expanded by six million tonnes, a move that will make it the largest fertiliser operation in the world.

  • Dangote and labour rights

    Dangote and labour rights

    It’s a fragile truce holding between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery and Petrochemicals over alleged anti-labour practices by the refinery, regarding which the labour body had called down industry Armageddon. PENGASSAN suspended its nationwide strike mid- last week, but warned the backdown was only temporary. It vowed speedy return to the trenches at the slightest indication of bad faith by Dangote.

    The labour association had, on Sunday, called an industrial action that momentarily crippled Nigeria’s oil and gas sectors, all in avowed bid to bring Dangote into line. Government had to mediate and, on Wednesday, PENGASSAN announced it was pulling back on “moral high ground” by bowing to government persuasion despite strong doubts about the sincerity of Dangote Group. “We are only suspending, not calling off this strike. If any part of this agreement is broken, we will not give any warning. We will immediately resume our suspended industrial action,” said PENGASSAN President Festus Osifo, who is also the president of Nigeria’s alternate labour centre, the Trade Union Congress (TUC).

    Dangote refinery is a $20billion private venture commissioned in 2023, and its rift with PENGASSAN centred on claims that the management sacked some 800 workers because they chose to join the labour association, allegedly against the policy of the organisation to not have its employees unionise. The association further alleged that the sacked workers were replaced with more than 2,000 Indians, which it described as an affront to Nigerian workers and a violation of the country’s Constitution, labour laws and International Labour Organisation (ILO) conventions. It thus directed its members to paralyse operations at the refinery by cutting off crude and gas supplies to it.

    In case you wonder how that works, PENGASSAN has members in organisations that supply Dangote with basic operational feedstocks like the Nigeria National Petroleum Company Ltd (NNPCL), and their compliance with the union’s directive meant the refinery got starved of those inputs. But PENGASSAN’s war was not restricted to Dangote, and it wasn’t like the association wanted it to be; it spilled over to national terrain as the association ordered its members nationwide to pull their services, thereby hobbling Nigeria’s entire energy sector and not just the 650,000 barrel-per-day output Dangote refinery.

    On Sunday, 28th September, that the association directed its members in various field locations to down tools from 6:00a.m., there were severe gas shortages that resulted in a reduction of national power generation by more than 1,100megawatts. The Nigerian Independent System Operator (NISO) made known that available generation on the national grid dipped from over 4,300mw in the early hours of the day in reference to about 3,200mw at the lowest point – a development that heightened pressure on the grid and necessitated emergency measures to stabilise supply and avert nationwide blackout. Measures applied include “demand-side management” that involved selective load shedding, which in practical terms for the average electricity consumer meant there was no public power supply for much of that day. There were as well snaps in supply lines of petrol and cooking gas to the market for much of last week. Up till the weekend, there were few petrol stations selling fuel in Lagos, and so at exploitative rates, while there were cooking gas shortages that inflated cost where available. The public bore the brunt.

    It was not that Dangote Group took the labour challenge laying back. The refinery management denied that it victimised workers for unionising, but rather that it undertook a restructuring from security and efficiency concerns within the organisation. It argued there were of recent incidents of sabotage by some employees at its plant that brought up issues of grave health concern and safety of human lives. Besides, it further argued, only a small portion of its 3,000 Nigerian workforce was affected, and that PENGASSAN’s recourse to disrupting its operations was brigandage writ large. “No law grants PENGASSAN the right to cut off our supplies,” the refinery said in a statement, as it accused the labour body of criminal conduct. It warned that disruption of its operations could significantly harm national fuel supply and revenues, urging government to stop the “reckless conduct.” Well, the public’s experience proved much of its statement true.

    Dangote Group also approached the National Industrial Court, from which it secured an interim order restraining PENGASSAN from disrupting the refinery’s operations. Justice Emmanuel Subilim granted the ex parte injunction after Dangote refinery argued that the disruption would cause irreparable economic harm. The judge ruled that preserving industrial peace outweighed the union’s actions, and scheduled further hearing in the suit for 13th October, 2025.

    Dangote management and PENGASSAN locked horns even over that court ruling. The association spurned the injunction, arguing that it had not been formally served and could not go by mere media reports. The company, for its part, accused the labour body of evading being served and at some point published the verdict in national newspapers. While the gridlock lasted, the country’s alternate labour centre, the Nigeria Labour Congress (NLC), directed all its affiliate unions to immediately begin mobilisation for industrial action against Dangote Group – a threat that, if carried through, would have had further devastating consequences on the public.

    Reprieve came only by way of government mediation – first  at closed-door talks moderated by Labour and Employment Minister Mohammed Dingyadi, and Minister of State Nkiruka Onyejeocha at the ministry’s headquarters in Abuja that were deadlocked, and later moved to the Office of National Security Adviser (NSA) Nuhu Ribadu. Reports said the parties eventually agreed that unionisation is a right of workers in accordance with Nigerian laws, and that the right should be respected. The meeting also agreed that the management of Dangote Group shall immediately begin the process of reabsorbing the disengaged workers and move them to other companies within the group, with no loss of pay and with no worker victimised for their role in the labour crisis. PENGASSAN, for its part, agreed to begin the process of calling off the strike. The communique at the end of the meeting added that both parties “agreed to this understanding in good faith.”

    The labour association had accused Dangote management of peddling misinformation with the claim that the sacked workers were suspected of sabotage, whereas the real issue was about their right to unionise. Indications were that it was right, otherwise Dangote would not have agreed to reabsorb those workers and redeploy them within the group. The conglomerate, obviously, has issues with unionisation and the effects on its investment interests. Reports at the weekend said the refinery management lately wrote the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), with which it also had recently squared off, to notify the union of its tanker drivers’ voluntary withdrawal from the body’s membership. It reportedly provided evidence of that voluntary decision and made a pledge to defray attendant financial commitments. So, there’s no question that the conglomerate has union phobia and would rather not have its employees partake.

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    But can you blame Dangote? The labour wars with which the business venture has had contend by themselves make unionisation unattractive for a private investor who staked his capital to create job opportunities and hopes for reasonable returns on that investment. Besides, it stands to reason that there is no employer who would be comfortable outsourcing control over employees – including the power to hire, fire or retain – to a supra authority called unions. Perhaps what the refinery management did wrong was the stock disengagement of workers on suspicion of unionisation, since the power for individual staff appraisal rests invariably with the management and decisions based on those appraisals inalienably that of the management.

    There is indeed a sense in which PENGASSAN’s bid to cripple Dangote’s operations was impetuously short-sighted. Refinery operation is of a kind where the pipes must stay wet or they could rust and develop blockages that could ruin the entire business. The labour association could have pressed its grouse through procedural channels like the industrial court or arbitration panel, or proactively invite government mediation; because if the refinery gets grounded, PENGASSAN’s members would be among those sent out of job.

    Two final posers should drive home the point. Labour unions naturally must desire more employment opportunities for their prospective members; but do they consider that the bring-down disposition of labour conversations could scare off investors who would create those jobs? Besides, what will PENGASSAN do if Dangote replaces human workforce at its refinery with Artificial Intelligence?

    •Please join me on kayodeidowu.blogspot.be for conversation.

  • Dangote on my mind (III)

    Dangote on my mind (III)

    One of the highlights of the first, so-called, civilian government after our painful dealings with military rulers was the selling off of many of our joint assets to the friends, cronies and surrogates of the government that was soon to reluctantly vacate the corridors of power. In the process of gathering where they did not sow, they had injured each other severely. And so, by the time they were leaving office, the most powerful members of that government, together with their gangs of hangers-on were no longer on speaking terms. So deep were the antiparthies within and between them that today, two decades after the great falling apart, they are still in the habit of taking pot shots at each from deeply entrenched but hardly concealed positions.

    On the eve of their departure from office, they somehow contrived to sell the four government owned crude oil refineries at a price which for its paltryness, does not deserve to be mentioned at this time. The buyer then was none other than Aliko Dangote, now the proud owner of the largest single train crude oil refinery in the world. This sale was,for any number of reasons, prevented from being consummated by the incoming government and the deal fell through. What has happened to those refineries since then is a catalogue of sorry history. In the end, the ownership of the refineries reverted to the NNPC for further mismanagement and twenty years later they are still swallowing huge chunks of dollars for nothing. In the meantime, the country has been suffering from an energy deficit that is wholly incompatible with development.

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    Ever since 1974 when in the wake of the Yom Kippur war, the Arabs wrapped their fingers tightly around their oil pipelines, crude oil has figured prominently in global discussion about the future of the world. The immediate consequence of the Arab control of their oil was to send the price of crude oil into a steep upward trajectory. Whilst the rest of the world groaned under pressure of increased oil prices, Nigeria and other oil producing countries were floundering under the weight of the petrodollars which poured into their coffers in what appeared to be a never ending stream. Prominent among these countries was Nigeria. So much money was coming into the country that the military head of state at the time declared that money was no longer our problem but how to spend it. And how badly we spent it on all manner of baubles that caught our fancy. We spent that money with so much ferocity that it was gone within no more than five glorious years. And then, we became poor but not before we picked up a slew of intolerably bad habits which since then we have found impossible to shake off. Chief among these habits was corruption and following very closely behind was our disdain for work of any kind, not to talk about work of the hard variety. Money was to be had in government coffers and many people had unfettered access to government money, in and out of government owned facilities. True, the governments of the day made some attempt to provide some facilities for public use, it was soon apparent that government spending was no more than a smoke screen under which a lot of money was simply diverted into private pockets, to be used for the purchase of their very own domestic comfort. The result of the confluence of those effects is that the government has become an avenue for the provision of loot on a grand scale for all those who had access to it. Nowhere was this more glaring than in the oil and gas sector of what passes for the Nigerian economy. A class or entire corps of players in our economy has arisen to feed on the rest of us. These people have become so used to enjoying their criminal privileges that they will stop at nothing to protect their interests.

    Throughout the period of endemic fuel shortages, the mechanisms of the oil market were under the control of the NNPC. It is the largest government owned oil company in Africa and with assets north of $150 billion, it is a powerful player in the global oil industry. Since its formation in 1977, the NNPC has assumed the role of a government within the government of Nigeria. It is that powerful and whoever is in charge of it is most certainly a person of distinction within the Nigerian power structure. To put it bluntly, this company gradually but purposefully acquired enough clout to become a law unto itself.

    It is a company whose accounts were not, or indeed could not be audited for years. It operated behind a screen of opacity so that the harder you looked, the less you could see or discern. Given this situation, this company can be compared to the mafia. Everyone knew they existed but hiding under a corporate fog, their existence could not be proven. Their final cloak was provided by successive Presidents who also retained the post of Minister of Petroleum Resources. After all, with the sale of crude oil providing all the fuel that powered the economy, keeping direct control of the NNPC was crucial to the health of that economy. However this has not enhanced the performance of this company and the consequence of this has been seen in the endless queues at petrol stations all over the land, a phenomenon that had become endemic over a period of fifty years.

    The last straw that broke the proverbial camel’s back was when the authorities of the Central Bank, joined in the operation to sabotage the national economy. To be fair, no collusion between the bank and NNPC has been discovered but between the two bodies, the nation was brought to its knees around Christmas in 2022. As usual, there was an acute shortage of fuel but even if there was fuel, there was no money in circulation to buy the fuel with. And this because the Central Bank had withdrawn all currency notes from circulation even as new notes were being printed to replace them. A humongous sum of money was set aside for this purpose, money that could and should have been set aside for more productive ventures. This was at a time when the NNPC had contracted debts the servicing of which included money from the sale of crude oil which was not due to be pumped out of the ground for many months into the future. The country was flat broke even though political parties were campaigning seriously for support in the imminent general elections for which hopeful politicians were burning off billions of Naira as they wooed a shell shocked electorate. The government that was eventually elected rewarded the bemused electorate with the double whammy of a near five times increase in the price of petrol and the exposure of the fragile Naira to the gale force winds of the unforgiving market place. The good people of Nigeria were caught in a vicious bind from which escape has been impossible since then.

    Throughout this period of discomfiture, the only light from the East was the persistent rumour of the imminence of the commencement of a refinery that was being built in Lagos by Aliko Dangote. But there was little room for hope because the building, equipping and commissioning of that refinery appeared to have taken forever to become reality. In the midst of our vast desert, it was becoming apparent that it was at best a mirage and at worst a giant hoax. After all, the project was first mooted in 2013 and due for completion in 2016. Seven years later, petrol was yet to come out of the refinery and our collective hearts sank when the NNPC, broke and broken as it was, announced that it was going to take a 20% stake in the refinery. Finally, in September of 2024, the news broke that petrol was finally coming out of the refinery and we heaved a collective sigh of relief. Little did we know at the time that the struggle for home refined fuel was only just beginning.

  • Activists seek quick resolution of Dangote, union face-off

    Activists seek quick resolution of Dangote, union face-off

    Civil society organisation, Save the Republic, has expressed concern over reports that more than 800 Nigerian engineers and workers were dismissed by Dangote Refinery for attempting to join a trade union.

    Addressing journalists on behalf of the group yesterday, Rights Lawyer, Deji Adeyanju, said the matter raises serious questions about labour rights, fair employment, and Nigeria’s regulatory environment.

    The group noted that Nigerian Constitution and the Trade Unions Act recognise the right of workers to freely associate and join unions, and any attempt to restrict such rights is inconsistent with the law.

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    “The right to organise is a constitutional guarantee under Section 40 of 1999 Constitution, as amended,” Adeyanju said. “It is important Nigerian workers are able to exercise this right without fear of dismissal or intimidation.”

    Save the Republic also noted the broader implications of the refinery’s reported actions, noting the Dangote Group has benefited from government interventions and licences. Adeyanju stressed given the scale of public support, transparency and fairness in employment practice were essential.

    He said Nigeria’s competition and consumer protection laws discourage any practice that could entrench monopoly or undermine rights of stakeholders, including employees.

    “This is a matter of public accountability,” he noted. “When a project of this scale receives state support, Nigerians have a right to demand fair treatment and full transparency in employment practice.”

    It appealed for calm and dialogue, urging parties to dialogue, stressing rights of workers must be respected while ensuring the refinery thrives.

    “The way forward is dialogue. Nobody wants to kill Dangote Refinery. We want it to work, but we also want the rights of workers respected,” he said.