Dangote Refinery Challenges NUPENG Over $18bn Refineries Expenditure

The dispute between the Dangote Petroleum Refinery and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) deepened on Friday, with the refinery urging the union to reveal those behind the alleged $18bn spent on government-owned refineries without results.

In a statement, Dangote Group questioned why the Port Harcourt, Warri, and Kaduna refineries remain inactive despite decades of turnaround maintenance exercises and huge financial commitments. The company recalled that in 2007, when two refineries were privatised to a consortium including Dangote, NUPENG strongly opposed the deal and pushed for its reversal.

The refinery said Nigerians deserve answers on how billions of dollars were spent without reviving the facilities. It asked NUPENG to help uncover who benefited from the failed rehabilitation projects.

Responding to allegations that it plans to monopolise fuel distribution, Dangote said its operations follow Nigeria’s deregulated market rules under the supervision of the Midstream and Downstream Petroleum Regulatory Authority, describing monopoly claims as false.

Meanwhile, the Ministry of Labour on Friday convened a meeting between both sides at the Department of State Services headquarters in Abuja. Dangote was represented by Alhaji Sayyu Dantata of MRS Oil, while NUPENG’s delegation was led by its president, Williams Akporeha.

After the meeting, Akporeha said parties were instructed to respect the memorandum of understanding signed earlier in the week, though tensions remain. The meeting came after NUPENG accused Dangote of breaching the September 9 agreement by instructing truck drivers to remove union stickers and adopt a new company-backed drivers’ association.

Earlier, NUPENG had shut down fuel depots in protest, alleging that Dangote prevented drivers of its 4,000 new CNG-powered trucks from joining the union. The action was briefly suspended following government intervention but resumed after the union claimed Dangote was undermining the pact.

NUPENG described Dangote’s offer of free nationwide petroleum delivery as a ploy to weaken competition and force drivers into its controlled association. The union also accused the refinery of sponsoring divisions within its Petroleum Tanker Drivers branch.

In its response, Dangote denied the claims, insisting it respects workers’ rights and does not interfere with lawful union activities. The company stressed that employees remain free to join any recognised trade union.