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Tag: Dangote

  • Dangote condemns PENGASSAN’s strike call

    Dangote condemns PENGASSAN’s strike call

    Dangote Petroleum Refinery (DPR) yesterday described the strike call by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on its members as act of lawlessness and sabotage against the country and its people.

    The refinery accused the leadership of the association whipping up sentiments under the pretense of protecting PENGASSAN members to bully them and feed fat on their check-off dues, which it claimed runs into billions of naira.

    In a statement by its management, DPR called on relevant authorities to rein in those it called “the oligarchs in PENGASSAN), nothing that “they have proved themselves to be terrorists and have turned the union into a bully organization.”

    According to DPR, the call by PENGASSAN in a September 27 memo on its members to withdraw service effective from “00.01hrs Monday (today)”, will inflict unbearable hardship on Nigerians.

    The refinery described PENGASSAN’s claimed that it hired 2000 Indians as replacement to the “over 800 presumably sacked Nigerians” as erroneous.

    Read Also: Strike: No disruption to petrol supply – PENGASSAN 

    The statement reads: PENGASSAN has not joined issues with us on these factual assertions; rather, it continues to peddle the falsehood that Dangote Refinery has sacked all Nigerians working in the refinery and presumably hired over 2,000 Indians to replace them.

    “That is complete falsehood. We also stated in the release that there is an ongoing reorganization with the Dangote Refinery which has resulted in the discharge of a very small number of staff and that the exercise is not arbitrary but is being carried out in the interest of the refinery.

    “These facts have not been rebutted by PENGASSAN, neither has its oligarchs attempted to verify the truth. Rather, it continues to peddle the falsehood that we have sacked over 800 members of PENGASSAN for joining PENGASSAN.”

    The refinery stated how PENGASSAN and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) frustrated plan by the Federal Government to sell the moribund refineries in Port Harcourt and Kaduna to Dangote Group-led blue star consortium at $750 million in 2007.

    Challenging PENGASSAN and NUPENG to pusblish their audited accounts in the past 10 years for public scrutiny, DPR urged the government to call unions’ leadership to order.

    “We call on the Federal Government and its agencies, as well as all Nigerian, to stare down PENGASSAN and put a stop to the machinations and blackmail tactics of its oligarch and sponsors”, the refinery said.

  • Dangote/PENGASSAN face-off: Oil workers to begin strike Monday 

    Dangote/PENGASSAN face-off: Oil workers to begin strike Monday 

    Oil workers under the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has directed all its members in the country to withdraw their services within 24 hours.

    The decision was during an emergency meeting of all its branches which lasted late into the night on Saturday.
    The strike order followed the recent sack of 800 workers by the Dangote Refinery and Petrochemicals.
    PENGASSAN’s General Secretary, Comrade Lumumba Okugbawa, conveyed this in a communique he signed and made available to newsmen.

    The union lamented that Dangote Refinery’s unilateral action to sack over 800 members of the Association for joining PENGASSAN was an insult to all workers in Nigeria and a deliberate violation of Nigeria’s labour laws, the Constitution, and International Labour Organisation (ILO) conventions.

    Read Also: Abuja-Kaduna train service set to resume next week

    The Union, in the communique, noted said, “Dangote Refinery’s notoriety for enslaving Nigerian workers and the eventual sack of all Nigerians working in the refinery and hiring of over 2,000 Indians, is a show of disloyalty to a country that has given him the most incentives any company has ever enjoyed in Nigeria, at taxpayers’ expense.”

    The oil workers said the company has subjected Nigerians to the worst type of working conditions in the oil and gas industry.

    The communique stated further, “That no man or company, no matter how highly placed, is above the law and cannot be called to order by the national institutions.

    “That the over 800 staff whose jobs have been given to Indians and their families are Nigerians and victims was made to suffer unjustly and there is an urgent need to avoid setting a dangerous precedence.

    The National Executive Council (NEC) of PENGASSAN resolves that all its members working across field locations are to withdraw services effective 06:00hrs on Sunday, 28th of September, 2025 and commence 24-hour prayers.

    This includes all control room operations, panel operations, and outfield personnel.
    It said, “All PENGASSAN members across all offices, companies, institutions, and agencies should withdraw all services effective 00:01 on Monday, 29th of September, 2025”.

    The oil workers said no intervention whatsoever will be entertained across field locations except where the safety of personnel and assets is at risk.

    “All processes that involve gas and crude supply to Dangote Refinery should be let off effectively immediately.
    “All IOC branches must ramp down gas production and supply to Dangote Refinery and petrochemicals.
    “The prayer point should include a call to God Almighty to give courage to those in authority to rein in Dangote and his co-travelers on the need to obey the laws of our country, “it added.

  • Price hike, scarcity fears heighten over PENGASSAN, Dangote face-off

    Price hike, scarcity fears heighten over PENGASSAN, Dangote face-off

    • Depots raise petrol price to N980 per litre
    • Union orders cut of gas, crude supply to refinery
    • Dangote accuses PENGASSAN of economic sabotage
    • Company resumes petrol sale in naira after FG intervenes

    After the celebrated feat of eradication of fuel scarcity in the country in the last two years, the queues may return anytime soon except the federal government makes a quick intervention. Yesterday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) ordered its seven branches to cut off crude oil and gas supplies to the $20 billion, 650,000 barrels per day Dangote Refinery and Petrochemical facility located in Ibeju-Lekki, Lagos.

    PENGASSAN’s directive was in response to Dangote Refinery laying off 800 Nigerian workers.

    While the Refinery’s management explained the  exercise as “part of an ongoing reorganisation to protect the facility from repeated acts of sabotage that had raised safety concerns and hampered operations,” the organised labour said it is an “act of anti-labour practices.”

    In a letter dated September 26 and signed by its General Secretary, Lumumba Okugbawa, the union accused the refinery’s management of firing its members in retaliation for exercising their constitutional right to join the union.

    In a memo signed by Okugbawa, and issued to branch chairmen in TotalEnergies, Renaissances, Chevron, Shell Nigeria Gas, Oando and Seplat Producing Nigeria Unlimited, the union directed the immediate shutdown of all valves and suspension of all crude loading operations to the Dangote Refinery facility.

    “As you are aware, the Management of Dangote Petroleum Refinery has disengaged our members in reaction to the exercise of their constitutional right to be unionised.

    Read Also: FERA refutes PENGASSAN’s allegations against Dangote Refinery

    “They have gone further on a mission of misinformation and propaganda to justify this illegitimacy rather than engaging meaningfully with us to right the wrong.

    “Consequent to these, you are hereby directed to cut off gas supply to NGIC effective immediately. All crude oil supply valves to the Refinery should be shut.

    The loading operation for the vessel headed there should be halted immediately,” the directive read.

    The union further mandated the NGIC Chairman to ensure strict compliance with the order and told all branch chairmen to give regular updates on the action taken.

    “NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive.

    “Kindly accept the assurances of our highest esteem. Thank you,” the statement read.

    The loading operation for the vessel headed there should be halted immediately,” the directive read.

    The union further mandated the NGIC Chairman to ensure strict compliance with the order and told all branch chairmen to give regular updates on the action taken.

    “NGIC Chairman, ensure that gas supply to the Refinery is cut off effective immediately. All chairmen on this summons are to report promptly the progress of the directive.

    “Kindly accept the assurances of our highest esteem. Thank you,” the statement read.

    The union also threatened to picket the refinery if the situation was not addressed.

    Dangote Refinery however warned that the directive by PENGASSAN to cut crude oil and gas supplies to the refinery could plunge Nigerians into fresh rounds of fuel scarcity while inflicting huge revenue losses on the government.

    Dangote: No law gives PENGASSAN right to cut off gas, crude oil supplies

    In a statement released by the firm yesterday, the refinery described the directive as “criminal, reckless and an act of economic sabotage” that, if enforced, would disrupt the production and nationwide supply of critical petroleum products, including petrol, diesel, aviation fuel, kerosene, and cooking gas.

    The company stressed that these products are indispensable to daily life and the economy, warning that Nigerians at every level from households to businesses and industries would bear the brunt of shortages.

    It noted that a sudden disruption in supply will translate into insufferable hardship for millions of Nigerians.

    “The products that would be disrupted and stopped include but are not limited to aviation fuel, petrol, kerosene, diesel and cooking gas – all products that are used and required by all stripes of Nigerians and persons living in Nigeria, whether high and mighty or lowly and ordinary.

    “In what circumstance would it be justified for PENGASSAN to so disrupt and introduce insufferable hardship into the living conditions of Nigerians? None that we can see.

    “The follow-up question is, in whose interest and on whose behalf is PENGASSAN directing and intending to inflict such anarchic and criminal disruption upon the Nigerian society and persons living in Nigeria? Most certainly not in the interest of the Nigerian State and/or the Nigerian public and citizens,” the company said.

    Beyond the immediate hardship on citizens, Dangote Refinery warned that the government’s revenue would also be dented, given the refinery’s status as one of the country’s largest taxpayers and contributors to both federal and state coffers.

    The company said any pause in operations would stall contributions to the national purse and undermine investor confidence in Nigeria’s oil and gas sector.

    The statement noted: “This is also economic sabotage against the Nigerian State at multiple levels.

    “Dangote Refinery is the only refinery of its type in Africa and ordinarily should be the pride of all Nigerians as well as the governments of Nigeria.

    “It should ordinarily have special protection and status and indeed qualifies as a strategic national asset.”

    It added that an irreparable injury to the Dangote Refinery such as PENGASSAN has directed constitutes a national embarrassment to the country and a disincentive to external investors who ordinarily would have been encouraged by the success of Dangote Refinery to contemplate investing in Nigeria’s oil and gas sector or generally.

    “PENGASSAN may also not be aware that Dangote Refinery is one of the largest contributors to the revenue purse of the Nigerian governments – both federal and sub-nationals.

    “That contribution is currently threatened by PENGASSAN and would of course be paused if and as soon as and for as long as the PENGASSAN directive is implemented by its branches,” it noted.

    The statement also noted that PENGASSAN had no legal authority to interfere in supply contracts between the refinery and its vendors, insisting that the action undermined the rule of law.

    “Absolutely no law gives PENGASSAN the right to direct its branches to “cut off” gas and crude oil supplies to Dangote Refinery or at all.

    “There is also no law in our statute books that would support or enable the PENGASSAN branches having to “cut off” gas and crude oil supplies to Dangote Refinery or at all.

    “Besides, it constitutes a criminal conduct for PENGASSAN or its members to disrupt and/or interfere howsoever in the contract between Dangote Refinery and its various vendors for the supply of gas and crude oil to the Refinery.

    “Those supply contracts were not entered into with PENGASSAN; they were entered into by Dangote Refinery with third party vendors and suppliers and PENGASSAN has no right whatsoever to disrupt and/or interfere with the performance of those contracts.”

    Calling on the Federal Government and security agencies to act swiftly, the refinery urged Nigerians to take note of the “unquantifiable and irredeemable hardship which PENGASSAN wishes to inflict on all of us” if not checked, warning that fuel queues, energy shortages and price hikes could quickly resurface.

    It urged PENGASSAN to submit to amicable and legal resolution and not resort to economic sabotage and mob action that could introduce mayhem and chaos and easily translate into anarchy.

    Stakeholders are worried over the development, warning of its dire consequences on the country’s economy.

    For instance, Dangote Refinery, it is believed, has been the stabilising factor in premium motor spirit (PMS) or petrol supply and steady availability in the country.

    Presently, on a daily basis, the refinery produces lighter products of 104 million litres- 57 million litres of petrol; 20 million litres of jet fuel and 27 million litres of diesel. 44 per cent of these volumes can meet the entire requirements of Nigeria while 56 per cent of the production is exported. 

    This production capacity is sufficient to meet 100 per cent of Nigeria’s local demand for refined petroleum products.

    The facility, according to Aliko Dangote, had exported 1.1 litres of petrol in the last three months. Nigeria’s daily petrol consumption is put at between 46 million litres and 50 million litres.

    But notwithstanding the refinery’s capacity to meet local demands, Nigeria’s fuel import reliance rose to 71 per cent of total petrol consumed domestically in the month of May and June, 2025. The remaining 28.62 per cent was sourced from the Dangote Petroleum Refinery.

    By implication, marketers, who should access products locally, are instead spending foreign exchange to import refined petroleum products.

    This was contained in data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in its July report presented to Federation Account Allocation Committee (FAAC). NMDPRA is the downstream regulator of the oil sector.

    The report further gave a breakdown which indicated that in the period, the petrol consumed amounted to total of 1.478 billion litres. Of this total, only 455,188,512 litres was sourced from local refineries, leaving 1.023,128,233 to importation.

    The 1.478 billion litres of petrol consumed in June was a 16.42 per cent decrease from 1.768 billion litres supplied in May.

    The report also indicated that the average daily petrol supply for the month was 49.277 million litres, of which 34.104 million litres was imported and 15.172 million sourced from local refineries.

    The total Automotive Gas Oil (diesel) consumed for the month was 432,180, 605 litres. This is 1.73 per cent higher than 424,829, 199 consumed in the month of May.

    Of the total 432,180, 605 litres consumed in June, 378,130,852 was imported while 58,049,753 was from local refineries.

    Similarly, the average daily supply was 14,406,020 litres, of which 12,604,372 was imported and 1,801, 658 was locally sourced.

    Union overreaching itself —Experts

    But stakeholders still maintained that notwithstanding these figures, PENGASSAN’s directive to shut gas and crude supply to Dangote refinery would still have a telling effect on the economy and by extension motorists. Besides, they cautioned that the unions may be overreaching with their actions.

    The Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Mud Yusuf, said the idea of going to cut off gas supply, coal supply to Dangote is a disproportionate response to this particular development.

    “We are talking here about issues of energy security. We are also talking about what exactly is in consonance with labour laws. If there are issues with an employer, I think there are processes to go about it.

    “There are processes of resolving disputes. You have industrial courts, you have other processes. This particular step, for me, is going to the extreme. I don’t think that is the way to go.

    “In all of these issues, you never can tell what the motive is, because most of these people, including the unions, these are people who have been major beneficiaries of the importation regime.

    “The coming into the industry of Dangote Refinery normally has created a lot of disruption and those who are benefiting from the status quo, including even some of these unions, are not likely to be happy with it.

    “But what is more important in all of this is to ensure that due process is followed even by the unions. I don’t think the next thing to do is to go and be shutting gas pipeline or crude supply.

    “This will also impact on contractual obligations between Dangote and the suppliers of these inputs.

    “I don’t think they (PENGASSAN) need to go as far as that. I think there are better ways of resolving these disputes without creating an energy crisis for the country,” Dr.Yusuf said.

    Although he agreed the suppliers can claim force majeure in the event that Dangote decides to take action against them for not supplying him the raw materials as agreed, Yusuf said the Unions may have even committed an act of illegality.

    “They may have committed an act of illegality by going as far as that. It is a disproportionate response from the union to Dangote.

    “I’m not saying they cannot engage in a dispute, but to go as far as that is disproportionate. It’s going to the extreme, because if the company gets force majeure, losses must have been suffered on both sides.

    “This is clearly a disruption inflicted by the union deliberately. So I’m not even sure whether that can qualify as force majeure. It can qualify as sabotage. That is what it’s going to look like,” Yusuf warned, adding that “there is need to interrogate the legality of even what they are doing, because there are rules guiding labour actions.

    “There are rules guiding the way you can also express your grievances, even as a union. I’m not sure that this particular step is covered in terms of what is legally permissible. You know, on that, you know, I doubt it and if it is found to be illegal, then there have to be consequences.

    “We need to send a signal that nobody is above the law. I mean, you have the Ministry of Labour, you have the industrial courts. That is why they are there to resolve labour disputes. 

    “Of course, there is a major risk of disruption to petrol and fuel supply to the country because Dangote refinery is a major supplier of petrol and fuel.

    “It’s a major supplier; it will disrupt the flow of supply of petrol and fuel and that will not be good for the country,” Yusuf concluded.

    Company resumes petrol sale in naira after FG’s intervention

    Meanwhile, Dangote Refinery late yesterday resumed petrol sale in naira after announcing its suspension on Friday.

    The Chief Branding and Communications Officer, Dangote Group, Tony Chiejina, in a message to The Nation, said the resumption followed the intervention of the Naira for Crude Technical Committee chairman.

    The resumption of the sales in naira was contained in an email to its customers yesterday night. 

    The notice signed by the Group Commercial Operations of Dangote Petroleum Refinery and Petrochemicals and titled ‘Resumption Suspension of DPRP PMS Naira Sales’, read: “Following the intervention of the Naira for Crude Technical Committee chairman, we are pleased to inform you of the resumption of the supply of PMS sales in naira commencing immediately.

    “You may kindly proceed to place your orders in naira for both self collection and free delivery of PMS to the earlier advised locations across the country.”

    Depots raise petrol price to N980 per litre

    Owing to PENGASSAN’s directive to its members to cut crude oil and gas supply to Dangote Refinery yesterday, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) increased their Premium Motor Spirit (PMS) petrol rate to N980 per litre from N880 per litre.

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) National President Alhaji Abubakar Maigandi, broke the news to The Nation on phone.

    “The depot owners have started jacking up their prices. I learnt that they are selling PMS N970 to N980 from N870 and N880.

    “Formerly, it was N820 and N825, but now they are selling N870 to N880,” he said.

    The IPMAN boss appealed to PENGASSAN to consider the negative impact their actions would cause the economy and rescind the decision to stop crude and gas supply to the refinery.

    He described the supply from the refinery to the domestic market as huge, although he could not readily state the quantity and percentage.

    His words: “We are appealing to PENGASSAN not to cut the supply of crude oil and gas to Dangote because it will affect the economy.

    “We are appealing to them to look at another way of resolving their differences between the association and Dangote management.

    “This is because anything that will shortchange the economy is not good.

    “The supply of Dangote to the Nigeria’s market is huge. He is the key distributor of petroleum products in the country.”

    Similarly, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) National Public Relations Officer, Chief Chinedu Ukadike, said the industrial action will culminate in petroleum products scarcity.

    According to him, the masses will bear the pains of the refinery and union unrest.

    He said Dangote Refinery has been the sole supplier of petrol in the country in the last two months.

    The NOGASA spokesman said: “Definitely, it will amount to scarcity, so we want to appeal that the government should step in so that the masses will not suffer.

    “I don’t think there has been importation of products in the last two months. Dangote has been the one supplying the products.”

    On the other hand, however, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) National President, Dr. Billy Hary, said Dangote refinery supplies only 31 per cent of national consumption of the product.

    He said the petroleum products market has been on the downward trend in the last few weeks as the retail outlets are dry.

    He advised Dangote to settle its scores with PENGASSAN, stressing that it is harmful for the refinery to fight the government, International Oil Companies (IOCs) and stakeholders all within a year of operation.

  • Dangote on my mind (II)

    Dangote on my mind (II)

    The elderly were venerated in pre-literate societies for several reasons, chief among them being their ability to recall events from the past and relate them to contemporary situations. Africa did not take to writing things down until quite recently which explains why old people are still held in high esteem simply for their longevity in many parts of the continent, especially in those parts where literacy is just taking root. Tucked away in the memory of such old people were events which needed to be retrieved from the past, to be of service to the present. Sometimes, such items of information were a matter of life or death and at other times, they were no more than items of passing interest. An example of this is found in Things fall apart, Chinua Achebe’s justly famous book about first contact. One episode in that novel concerned the arrival of a swarm of locusts in Umuofia, shortly after the annual gathering of the harvest. Locust invasions were a rare event, so rare that only a few long-lived individuals had lived long enough to be witness to two of such visitations in their life time. It was the wisdom of a few of the ancient survivors in their midst that made it possible for the visitation of the swarm of locusts described in the book to be effectively dealt with. There are other examples of elderly interventions which were of more critical importance to their society.

    In current times when everything is sure to have been faithfully recorded somewhere, dependence on human longevity, for the sake of longevity is no longer of crucial importance as it once was. Even then, the old still have some bragging rights when it comes to reaching into the past to make a point. One of such instances must be the issue of the effect of petrol and diesel on our societal well being.

    Before the magical year of 1972 nobody in this country gave any thought to the availability of petrol. True, there were only a few petrol stations giving service in any given locality but there was no time when any of them was ever out of fuel to sell. Many of them were also open for service at virtually any time of day or night. The first hint of trouble as to the availability of fuel came in December of 1972. At that point in time, two grades of petrol, super and ordinary were available everywhere with the super variety being more expensive than the other. You had a choice. During the Christmas period of 1972, the super grade fuel suddenly and for no apparent reason became unavailable. This was only noticeable to the big wigs who ran their expensive vehicles on super grade petrol. So light was the hiccup that those that were restricted to using the ordinary grade of petrol were unlikely to have noticed that anything was amiss. By the following year, the fuel situation had changed so drastically that throughout the Christmas period and well beyond, there was hardly any grade of petrol to be had anywhere. Long petrol queues appeared as if by magic and instances of people sleeping over on those queues became part of everyday existence. Unfortunately, this became an expected phenomenon which spilled out of the Christmas and other holiday periods in Nigeria and became an uncomfortable norm. Petrol sellers cashed in on this situation and the classical experience of the increase in price in periods of scarcity became the order of the day. Very soon, prices began to increase by government fiat. From 5 kobo per litre in the seventies, petrol climbed to the dizzy height of more than N 1,000 per litre at the time almost two years ago, when the scam called fuel subsidy was removed from the painfully constricted throat of long suffering Nigerians. For a period of fifty years, we suffered unbearable torture at the hand of the fuel mafia even as our need for their product increased exponentially from year to year until it became a burden which was too heavy to be borne. There just had to be a way out of that situation.

    Read Also: BREAKING: PENGASSAN orders gas supply cut to Dangote refinery

    At the height of the oil boom in the seventies, the government constructed four refineries which were supposed to keep us in regular supply of petrol, diesel and kerosene. Personally, I cannot remember if this was achieved at any time even before the refineries kept breaking down due to poor management and disdain for proper maintenance. Somewhere down the line, we have lived up to the fiction of being producers of refined petrol chemicals and became importers of these products. This was a painful paradox because we were one of the leading producers and exporters of crude oil but we could not enjoy this privilege in a world which hungered for oil as never before in human history. But we were supposed to enjoy this privilege and someone came up with the really clever idea of creating a government run monopoly which sold refined petroleum products at less than their landing cost. This made the cost of these products significantly less than it was in all our neighbouring countries. Naturally, a lot of our subsidised petrol flowed into those countries where there never were any long petrol queues as was the case in Nigeria. Whatever gains that accrued from any subsidy on refined products passed straight into the cavernous pockets of those in charge of running the subsidy scam and the smugglers who channelled the fuel into other countries. Between them, they swallowed our collective patrimony.

    It is not difficult, especially in hindsight, to see that our economy was being subsidised at the expense of each one of us. Our currency situation was also in the gutter even as the crude oil which was supposed to pay for everything was being purloined on an industrial scale close to the points of extraction. So much of this oil was being cooked in makeshift kitchens in the Niger Delta region that loads of carbon particles were released into the air and breathing became difficult in many parts. The combined activities of the subsidy scammers, the smugglers and those of the cooks in the Delta were augmented with the damage inflicted on the economy by currency speculators. These were the round trippers who used their positions and enormous influence to gather hot dollars straight from the Central Bank at the official rate. These they then sold for huge piles of cold Naira. These were then processed through the Central Bank furnace, to turn them into piping hot dollars thanks also to the huge discrepancy between the official and unofficial values of the dollar.

    It is not difficult to imagine that in the middle of all these, what could be called a Nigerian economy was practically nonexistent. The people who had money could not invest it in Nigeria if only because in the face of astronomical interest rates, they would have been barking mad to risk investing their money in Nigeria. They simply moved the bulk of their loot into safe havens far away as they lived high on the fat of the hog in all the fleshpots of the world. In the midst of all this, it would have been madness for anyone to think of risking 20 billion hot dollars in setting up the largest single train refinery in the world right here in Nigeria.

  • Reps committee moves to resolve Dangote, NUPENG dispute

    Reps committee moves to resolve Dangote, NUPENG dispute

    The House of Representatives Committee on Petroleum Resources (Downstream) has pledged to intervene in the ongoing dispute between Dangote Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), warning that mishandling the issue could destabilize the downstream sector.

    Committee chairman, Ikenga Imo Ugochinyere, gave the assurance on Friday in Lagos at the close of a three-day retreat.

    He noted that while Dangote and NUPENG signed a Memorandum of Understanding on September 9 to strengthen workers’ right to unionise, fresh disagreements have since emerged. NUPENG accused the refinery of intimidation, alleging it ordered truck drivers to remove union stickers before loading. Dangote, however, dismissed the claims as “cheap blackmail.”

    Ugochinyere said the committee had received multiple submissions from stakeholders and would act in the best interest of both parties.

    “If the issue is not well handled, it will create instability in the downstream sector. We must balance labour issues with economic interests,” he stated.

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    He also revealed that the committee has reopened its investigation into NNPC Ltd.’s acquisition of OVH Energy Marketing’s downstream assets and refinery upgrade, following a directive from the House after the initial report was rejected for omitting key facts.

    He stated that with the commencement of the investigation, the general public is invited to make their input before the lawmakers present their recommendations on the floor of the House. He said those with information and submissions should submit them to the clerk of the downstream committee.

    He explained that one of the major causes of delay was the failure of certain stakeholders to submit vital documents, but the committee has resolved to move forward with or without those submissions and complete the assignment as mandated by the House.

    The lawmaker assured that any individuals found to have acted improperly—either through direct wrongdoing or failure in oversight—will be identified, and appropriate recommendations will be made in the best interest of the nation.

    Ugochinyere said, “The investigation is distinct from the previous inquiry carried out. The House, therefore, mandated the Downstream Committee to undertake a fresh investigation—with a clear directive to uncover what truly transpired in the OVH acquisition process.

    “This includes examining the funds paid, details of the acquisition agreement, the assets involved, and the circumstances in which former OVH managers were reported to have formed a new company that later acquired OVH itself. Shockingly, those same individuals are also alleged to have assumed leadership roles within NNPC Retail, raising serious concerns about the integrity and transparency of the entire transaction.

    “The committee has now begun this re-investigation in earnest and held a special committee meeting to deliberate on the matter. One of the key resolutions at that meeting was the timely completion of the investigation, which has been long overdue. Pressure from retail staff, industry stakeholders, and members of the public has mounted, questioning the delay and demanding accountability.

    “One of the major causes of delay was the failure of certain stakeholders to submit vital documents. However, the committee has now resolved to move forward with or without those submissions and complete the assignment as mandated by the House. As part of the parliamentary process, the investigation must be concluded and a detailed report submitted to the House for action.

    “This investigation is critical—not just to address the numerous unanswered questions and alleged irregularities surrounding the OVH acquisition—but also to allow the new leadership at NNPC Retail to focus fully on their ongoing reforms without distraction. Laying these matters to rest is essential for restoring public trust and ensuring that the reforms are not undermined by past controversies.”

  • Dangote on my mind

    Dangote on my mind

    There are not many Nigerians who have not had Dangote on their mind at one time or the other. At least,not now that the health of the country depends so much on the health of his enterprises, especially that of his truly enormous refinery. I doubt that the Nigerian economy would show any signs of life by now, but for the continued good health of that plant in Lekki.

    Dangote has been a household name in Nigeria for quite some time now as he has been the nation’s leading industrialist for more than three decades. More than that, or perhaps because of it, Dangote has been the richest man, not only in Nigeria but in the whole of Africa. But, even he took a hit at the time when he had to divert a hefty portion of his wealth to the building of his refinery. There was a time when his name was more prominent than it is now on the list of the richest men in the world, But, not only are there new billionaires being minted somewhere on the globe every week, the wealth credited to the richest men in the world these days is simply mind boggling. Given the current situation, it is not surprising that the arrival of the first trillionaire in the world now has an air of inevitability about it. But, this astonishing phenomenon is clearly beyond the scope of this article and will be allowed to rest at this point, at least for now.

    Dangote came to prominence at a time when Nigeria became a dumping ground for cement. Ships from all parts of the world sailed into the ports in Lagos bearing cargoes of cement in what quickly became a scam as each ship had to queue up at the port for considerably long periods of time during which they claimed demurrage payments for their owners even when the cement in their hold was of questions or quality and origin. Some of the ships were old junks which had limped into port on their last steam and made more money standing off the coast of Nigeria than actually plying the blue seas as part of global maritime commerce. That situation arose because of the virtual collapse of the local cement industry which had been active even before the war. There was the famous Nkalagu cement factory, the cement plant at Ewekoro and another one in Gboko but the demand far outstripped production hence the cement scarcity within Nigeria. Dangote, a young business man at the time stepped into the breach which existed then and the plant at Gboko was given a new lease of life under his management

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     Today, Nigeria is a net exporter of cement. More than that, Dangote has built a cement empire in no less than ten African countries and created many thousand jobs all over the continent. He has planted his footsteps far and wide and made a name for himself and for Nigeria.

    What Dangote has done for cement, he has also done for sugar. He was enabled to produce cement because of the availability of limestone, the principal raw material of cement in several parts of Nigeria. What is needed for the production of sugar is sugar cane, which can be planted in many parts of the country. This provided the cornerstone for the government policy of backward integration which persuaded Dangote to explore the possibility of producing sugar and it’s ancillary products from sugar cane grown in Nigeria. Today, Dangote produces refined sugar in the largest sugar refinery in Africa at Apapa. To supply this refinery with needed raw materials, the Dangote Sugar company is involved in the planting and harvesting of sugar cane from huge plantations along the banks of River Benue in both Adamawa and Nassarawa states. The contribution of these activities to the Nigerian economy is not only immense but growing as production activities expand within the growing Nigerian market as thousands of jobs, both direct and indirect are created. In addition, this also has a positive effect on our foreign exchange situation as the hard currency required for the importation of sugar is conserved. With his involvement in the refining of sugar, Dangote has been responsible for the inflow of foreign currency from Ghana where he has set up a sugar production facility in the same way that he built cement factories in other African countries. Here, he has introduced the backward integration policy of the Nigerian government into the neighbouring country of Ghana from where it is set to spread further afield.

    There was a time, a long time ago it has to be said, when I listened very attentively to any speech coming from the Head of State of Nigeria. I considered all of them to be of great political importance and faithfully listened with the hope of hearing something of great importance. I never did learn anything of consequence from those speeches over the years so I began to treat them with studied indifference. However I was more or less entreated to listen to the last inauguration speech by a friend, which is why I was able to hear first hand that petroleum subsidy payments had been brought to an immediate end. My immediate response to this announcement was to scoff at it. After all, the same announcement had been made from all successive governments starting from Babangida nearly thirty years before when local government refineries had broken down irreparably as we discovered many years later.

    Petroleum subsidy removals were always couched in the same way. The promise was made that all monies accruing from the subsidy removals were to be used for the building of roads and other such socially useful infrastructure. Only one government, ironically that of Abacha, made a significant move towards keeping that promise. Subsidies were duly removed, the price of fuel ballooned oppressively but no infrastructural development followed in its wake. Another thing was that subsidies always came back, to be removed all over again time after time. This formed the basis of my belief that sooner or later, there would be a return of the subsidy regime under the current regime. It is becoming apparent however that to all intents and purposes, petrol subsidies have not made a surreptitious return by the backdoor and the objective difference this time around has been the Dangote refinery.

    By the time the removal of  fuel subsidies had become a government policy plank, hopes of the resurrection of our moribund refineries in Port Harcourt and other places were making the rounds. But if the government had any hope in the ability of those refineries to give any backing to the removal of fuel subsidies, those hopes have now been seen to have been  sadly misplaced. Day after day, news of fuel production in those refineries raised our hopes only for them to be dashed again and again. Finally, we are coming to terms with the inability of all the king’s men and all his horses to put back our broken Humpty Dumpty together again. There is now talk of selling those enormous white elephants presumably as scrap. We now have little choice but to pin our economic hope on Dangote’s refinery. In the light of what has happened since then, it is worth speculating  that it was the imminence of fuel production by Dangote that encouraged that announcement of subsidy removal ab initio. If it was not, the removal of subsidies and the coming of the refinery can now be described as a happy accident.

    I shudder to think of what would have happened to our economy in the absence of that refinery. It is now clear that subsidy was being paid on fuel which was not consumed in Nigeria. This is because the volume of petrol now used in Nigeria is hardly more than half of what it was in the bad days before the removal of the fuel subsidy. This has confirmed the suspicion in many quarters that the fuel subsidy thing was a gigantic scam. And the perpetrators of that scam are still fighting a bitter rearguard action to protect their turf. This cannot but be the case as the loot which was pocketed by the fuel subsidy perpetrators was humungous to say the least. All the rent seekers who have been gorging, mosquito-like on the riches of the land can be recognised by their united and unprincipled opposition to the Dangote refinery. That is what stands between them and paradise, to the detriment of the rest of us.

  • Marketers demand N1.5tr subsidy to match refinery gantry price, says Dangote

    Marketers demand N1.5tr subsidy to match refinery gantry price, says Dangote

    • Refinery management dares DAPPMAN to go to court

    Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding a yearly subsidy of N1.505 trillion to enable its members to match the refinery’s gantry prices at their depots.

    The management of the refinery said doing so would lead to a hike in the price of petrol to N75 per litre.

    The N1.505 trillion, according to a statement by the refinery’s management, is based on Nigeria’s daily consumption of 40 million litres.

    The management said, although the refinery offers petroleum products to marketers at its gantry price, “DAPPMAN insists on taking delivery via coastal logistics, an option that would add N75 per litre in extra costs”.

    The statement reads: “Based on daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion (N1,505,625,000,000), which they effectively asked the refinery to absorb or pass on to Nigerians.

    “Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.

    “We wish to make it clear that we have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the Federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”

    The management alleged that its refusal to comply with DAPPMAN’s subsidy request is the reason for the recent public criticisms and attacks against the refinery.

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     It reiterated that the refinery has sufficient capacity to meet domestic demand and support exports as it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.

    “Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping, which is detrimental to the Nigerian economy and the well-being of its citizens,” Dangote Refinery said.

    Reaffirming its commitment to supporting the reform agenda of President Bola Ahmed Tinubu, the refinery stated that through various strategic interventions, it has helped stabilise the Naira, cushion the effects of fuel subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create employment opportunities across multiple sectors.

    “We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.

    “Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it added.

  • Coalition stands with Dangote, vows lawsuits against coercive tactics

    Coalition stands with Dangote, vows lawsuits against coercive tactics

    A coalition of civil society organisations has rallied behind Dangote Petroleum Refinery, denouncing the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) for what they described as “economic terrorism” and coercive unionization tactics. 

    In a briefing  in Abuja, the group vowed to pursue legal action against any party infringing on workers’ rights and called for a federal probe into NUPENG’s alleged backers.

    Representing a broad alliance including the Civil Rights Defenders Advocates, Citizens for Economic Justice, Nigeria Freedom Network, and eight other groups, Convener Dr. Agabi Emmanuel accused NUPENG of violating constitutional freedoms by pressuring refinery workers, including truck drivers, to join the union under threats of blockades and intimidation. 

    “This is not unionism; it is extortion dressed in the garb of workers’ rights,” Emmanuel declared, citing Section 40 of the 1999 Constitution, which protects the right to freely associate or abstain from unions.

    The coalition highlighted NUPENG’s reported actions, such as obstructing non-union workers from loading fuel and affixing seals on trucks to assert control, as breaches of the Trade Unions Act and Trade Disputes Act. 

    They praised Dangote Refinery for upholding voluntarism and ensuring a safe working environment, contrasting it with NUPENG’s “strong-arm tactics” that they said sabotage Nigeria’s energy security.

    Emmanuel warned that the coalition would file lawsuits if Dangote or any entity forces workers into union membership, emphasizing that “the right to choose is non-negotiable.” 

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    They urged the Department of State Services (DSS) to investigate NUPENG’s sponsors, including allegations of high-profile intimidation involving the Navy and helicopter flyovers. 

    “Any individual or group found complicit must face prosecution for economic terrorism,” he added, framing the refinery as a “cornerstone of Nigeria’s energy security.”

    The statement concluded with a call to the Federal Government, civil society, and international labor bodies to denounce NUPENG’s “economic blackmail” and support industrial harmony. 

    “The Nigerian people have had enough,” Dr. Emmanuel said. “We will not tolerate any group holding our nation to ransom.”

  • NUPENG vs. Dangote

    NUPENG vs. Dangote

    •Government should put in place measures to resolve disputes without disrupting distribution

    Twists and turns have marked and marred the oil sector for as long as crude oil has been the mainstay of the Nigerian economy. Even when the state-owned refineries were in operation, supplied crude by the state-owned Nigerian National Petroleum Corporation (NNPC), breakdown of the distribution chain was regular, thus inflicting pains on the consumers.

    Passage of the Petroleum Industry Act (PIA) in the twilight of the Buhari administration raised hopes that deregulation of the sector would help ensure some sanity. True, for a while, after the Dangote Refinery came on stream, long queues at the fuel stations disappeared. The laws of supply and demand held sway, but drama and spats have not been in short supply among the stakeholders. When it is not between the 650,000 barrels per day giant and the regulatory authorities, it was between marketers and the refinery.

    A year after gasoline by a private refinery debuted in the country, disputes have not abated.

    Last week, the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG)  and the refinery threatened to disrupt supply of locally refined petroleum products to the filling stations. The union declared industrial action with Dangote Refinery for allegedly disallowing unionisation of workers in the company.

    NUPENG claimed that Dangote threatened to sack anyone that associated with it. In its place, the refinery was said to have hurriedly put in place a union unknown to the industry. The strike action lasted two days before the fire was put out by a truce brokered by the Department of State Services (DSS), in order to prevent it from subverting national security.

    At the initial two-day dialogue, many stakeholders, including the Federal Ministry of Labour and Employment, Federal Ministry of Finance, the Nigeria Labour Congress (NLC), Petroleum and Natural Gas Senior Staff Association (PENGASSAN), participated. The main protagonists  — Dangote, NUPENG and the Independent Petroleum Marketers Association of Nigeria (IPMAN) were also on seat.

    At last, they signed a Memorandum of Understanding (MOU), but the agreement did not last 24 hours before NUPENG once again cried foul that the oil firm was not keeping to the terms that included that it would allow free operation of unions and no one would be threatened with a sack for associating with existing recognised unions. It was equally alleged that Dangote disallowed any truck having the NUPENG stickers access to its premises, let alone load products. Again, it fell on the DSS to broker peace.

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    So far, consumers have not felt the impact of sour relations among the stakeholders. We hope they would continue to have seamless dialogue without even bringing in state security outfits. But anyone who paid attention to the terms of the agreement would have realised that crisis was not far off as, in keeping with the labour laws; the MOU noted that workers should be allowed to join unions of their choice.

    In other words, workers, especially the tanker drivers who already had grouse with NUPENG, were free to refuse entreaties from the union. Even the Petroleum Tanker Drivers unit of the union had been accusing it of extortion before the dispute with Dangote Refinery surfaced. This was a lacuna that would bring up disagreement again.

    NUPENG should not rely on strong arm tactics in resolving disputes. Often, in the past, the union had relied on its strategic position in the society, and support from the NLC and PENGASSAN, in dealing with matters that could have been easily resolved round a table.

    Neither side should seek to overawe the other in the national interest. That the refinery intends to bring in about 10,000 Compressed Natural Gas-driven trucks should be a blessing to the country, not a curse; at least in the absence of other modes of transportation for that purpose. As its chairman, Alhaji Aliko Dangote, pointed out at a press briefing to mark the first anniversary of Petroleum Motor Spirit (PMS) on Monday, it is obvious that the company’s entry to the sector has driven price constantly downwards, even though Nigerians expect more in the days ahead.

    It is expected that the direct free delivery of products to stations across the country would be to the benefit of all. The independent marketers who appeared to be kicking initially have since reached agreement with the suppliers who assured them that they were not out to suppress anyone in the industry. Dangote says he is not interested in acquiring filling stations that would have elbowed out some medium and smale-scale stations. This should be soothing to IPMAN members.

    In all this, nothing has been heard from the Major Oil Marketers Association of Nigeria (MOMAN), an indication that they may have no grouse against the system. But, just when it appeared that the union had accepted the position of the refinery that the workers were free to join unions of their choice without compulsion, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) fiercely objected to the firm’s plan to supply products to the filling stations.

    The association claimed that many would be at the mercy of the oil giant if that was allowed. DAPPMAN’s executive secretary, Mr. Olufemi Adewole, insisted that Dangote should respect all stakeholders and keep to its lane as a producer. He described as false the company’s claim to supplying a large chunk of the fuel in the market, contending that only about 30-35 per cent of the oil in circulation in Nigeria is supplied by Dangote.

    He said the firm had been selling to the United States and other countries. A damning allegation by DAPPMAN that it had been sourcing products from Togo to which the refinery sells at cheaper cost attracted a swift rebuttal from Dangote.

    One issue that has been in the public space for a while is that Dangote could soon become a monopoly in the industry since it supplies so much products and is dabbling into distribution. About 100 of the 4,000 trucks already procured and delivered are said to have been deployed for supplies.

    However, upcoming Uyo-based BUA Refinery, Edo State Refinery and other modular refineries are expected to put up some checks on any monopoly tendencies. Besides, it cannot be ruled out that the state-owned refineries in Port Harcourt, Warri and Kaduna would sometimes soon begin production.

    All we should ask for is for the regulatory authorities to be alive to their responsibilities in ensuring fair practice and justice in the system. No one should be permitted to hold others by the jugular. To allay fears, anti-trust laws should be revisited by the lawmakers, while regular parleys should be organised by relevant agencies of government to iron out areas of disagreement.

    The oil and gas industry functions like oxygen to the economy and households. Disruptions should therefore be proactively tackled.

  • Dangote declares fuel queues over as refinery marks one year of petrol production

    Dangote declares fuel queues over as refinery marks one year of petrol production

    Nigeria’s near five-decade struggle with fuel queues has finally ended, according to Africa’s richest man and President/Chief Executive of Dangote Petroleum Refinery, Aliko Dangote.

    Speaking in Lagos at a conference to commemorate the first anniversary of petrol production from the 650,000 barrels-per-day facility, Dangote said the refinery’s success has ushered in a “new era” for Nigerians since it began rolling out Premium Motor Spirit (PMS) on September 15, 2024.

    “We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” Dangote declared.

    Dangote recalled that the project carried enormous risks, with repeated warnings from industry experts and financiers who argued that only sovereign governments could attempt such a venture.

    “The decision to build the refinery was not easy. If it had gone wrong, lenders would have taken our assets. But we believed in Nigeria and Africa,” he said.

    Despite skepticism, opposition and economic headwinds, he pointed out the refinery has succeeded in reducing petrol prices from nearly N1,100 per litre before production began to about N841 in parts of the South West, Abuja, Delta, Rivers, Edo, and Kwara States.

    Dangote said the rollout of 4,000 Compressed Natural Gas (CNG)-powered trucks would ensure this relief extends nationwide.

    The refinery has already exported over 1.1 billion litres of PMS between June and early September 2025, underscoring its dual role in meeting domestic demand and earning foreign exchange for Nigeria.

    Dangote emphasised that rather than displacing jobs, the refinery is creating thousands of new opportunities. The CNG truck deployment alone is projected to generate 24,000 jobs, spanning drivers, mechanics, fleet managers, and support staff.

    “Our employees earn salaries three times the minimum wage. Drivers get a living wage, life insurance, health insurance for their families, and a lifelong pension. We have not displaced jobs; we are creating more,” he stressed.

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    Beyond fuel, Dangote stated the refinery has become a catalyst for Nigeria’s broader industrialisation. 

    He urged the government to discourage the dumping of cheap foreign goods, warning that overreliance on imports exports jobs and “imports poverty.”

    “Other nations were not industrialised by outsiders. We must build and industrialise our own economies,” he said, citing the collapse of Nigeria’s textile industry as a cautionary tale.

    Dangote revealed plans to expand the refinery’s capacity to 700,000 barrels per day in its second year of operation. He also outlined ambitions to make Nigeria Africa’s refining hub and a global leader in fertiliser and polypropylene production.

    “These initiatives will generate substantial foreign exchange, create employment, and stimulate growth in other sectors,” he said.

    He reaffirmed that the refinery will not venture into the retail market despite opportunities to acquire filling stations, stressing instead the importance of collaboration with other downstream stakeholders.

    Dangote expressed appreciation to the Federal Government, regulators, and the Independent Petroleum Marketers Association of Nigeria (IPMAN) for backing the refinery’s distribution strategy.

    He also showcased some of the newly deployed CNG trucks, assuring that the government and security agencies are fully committed to protecting drivers and infrastructure.

    “The refinery is not just about fuel; it’s about building a stronger economy, creating jobs, and positioning Nigeria as an industrial leader,” Dangote concluded.