Dangote Challenges NUPENG to Explain Who and How $18 Billion Was Wasted on Nigeria’s Refineries

  • Dangote Petroleum Refinery has challenged NUPENG to expose those responsible for the alleged $18 billion wasted on government-owned refineries
  • The company reminded the union of its opposition to the 2007 privatisation of the refineries, which Dangote claims could have revived them
  • It also dismissed NUPENG’s allegations of monopolistic practices, stressing that its operations comply with Nigeria’s deregulated petroleum market framework

Legit.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology, Banking and the Economy.

The ongoing dispute between the Dangote Petroleum Refinery and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) escalated on Friday after Dangote challenged the union to reveal those responsible for the alleged $18 billion spent on government-owned refineries without producing any results.

In a statement, the company questioned why the Port Harcourt, Warri, and Kaduna refineries remain inactive despite years of huge investments in turnaround maintenance and rehabilitation projects.

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Dangote refutes monopoly claims, urges NUPENG to expose refinery funds scandal
Dangote Challenges NUPENG to Explain Who and How $18 Billion Was Wasted on Nigeria’s Refineries
Source: UGC

Dangote urges NUPENG to expose refinery funds scandal

Aliko Dangote had earlier noted that successive administrations poured billions of dollars into these facilities, yet none have returned to full operation.

Addressing allegations that Dangote restricts petroleum tanker drivers from unionising, the company recalled NUPENG’s role in opposing the 2007 privatisation of the Port Harcourt and Kaduna refineries, transactions in which Dangote was part of the acquiring consortium.

According to the firm, the union’s resistance contributed to the reversal of that sale, which could have revived the moribund plants.

Dangote further urged Nigerians to demand accountability for the massive funds reportedly wasted.

It claimed that when the Port Harcourt and Kaduna refineries were privatised to a consortium in which Dangote was a member in 2007, the same NUPENG members were amongst the town criers against the privatisation.

The company queried:

“To date, about $18bn has been wasted to rehabilitate the refineries without any success. Who are the people who spent all these humongous amounts without any result? Can NUPENG assist Nigerians to unravel this?”

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Responding to NUPENG’s accusation that the refinery is seeking to monopolise the petroleum sector through direct fuel distribution, Dangote insisted that its operations align with Nigeria’s deregulated market structure, overseen by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Dangote and NUPENG at loggerheads

Recall that Legit.ng had earlier reported that NUPENG shut down fuel depots on Monday, protesting that Dangote Refinery refused to let new drivers of its 4,000 CNG-powered trucks join the union.

The strike lasted until Tuesday, when both sides reached an agreement through the Ministry of Labour and Employment.

However, the union later accused Dangote of breaking the deal. NUPENG said that after signing an MoU on September 9, the refinery told drivers to remove union stickers from their trucks and replace them with those of a new association allegedly created by the company.

Dangote refutes monopoly claims, urges NUPENG to expose refinery funds scandal
Dangote Challenges NUPENG to Explain Who and How $18 Billion Was Wasted on Nigeria’s Refineries
Source: Getty Images

The union then blocked the refinery’s main gate with trucks, stopping fuel loading.

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NUPENG accused Dangote of dividing its Petroleum Tanker Drivers branch and denying workers their right to unionise.

But the Dangote Group dismissed the claims, saying it fully supports labour rights and that workers are free to join any recognised union.

Depot owners clash with Dangote Refinery

Meanwhile, Legit.ng earlier reported that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) rejected claims by Dangote Refinery that it can fully meet the country’s fuel demand.

According to DAPPMAN’s Executive Secretary, Femi Adewole, depot operators and other marketers still dominate petrol distribution nationwide, controlling more than 68% of the market.

He explained that in May alone, Nigeria consumed about 1.7 billion litres of petrol, with Dangote supplying only 24%, while the majority came from depots.

Source: Legit.ng



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