* Dismisses NUPENG’s allegations as unfounded

Sopuruchi Onwuka

The Dangote Petroleum Refinery says it is set to deploy the hyped compressed natural gas (CNG)-powered trucks, saying that the measure was part of its logistics-free distribution programme aimed at significantly reducing fuel prices across Nigeria.

Dangote Group is investing over N720 billion into the programme, which is also anticipated to revitalize dormant filling stations across the country. The project is expected to create numerous direct employment opportunities, including roles for truck drivers, filling station managers, and fuel attendants.

The company stated that the initiative would see the gantry price reduced to N820 per litre, with corresponding lower retail prices in few states of the country.

This transition to CNG-powered transportation is expected to save the Nigerian economy over N1.8 trillion annually, the company stated, adding that the move is designed to cut fuel distribution costs, reduce pump prices, and ease inflationary pressures.

“In particular, the initiative is expected to benefit more than 42 million micro, small and medium enterprises (MSMEs) by lowering energy costs and improving profit margins.

The company has called on stakeholders, including fuel station operators, telecommunications companies, and large-scale fuel consumers to partner with the initiative to ensure its success and maximize its economic impact.

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

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

In its official response, Dangote Refinery reiterated its full support for constitutionally protected labour rights, stating that employees are free to affiliate with any recognized trade union. “Assertions that drivers are compelled to waive union rights are categorically false,” the statement said, adding that the dispute involves NUPENG’s Petrol Tanker Drivers (PTD) unit and does not implicate the refinery in any breach of rights.

Central to NUPENG’s allegations is the roll-out of over 4,000 CNG-powered bulk trucks, which the union claims could displace existing jobs. Dangote Group firmly refuted this, describing the initiative as a cornerstone of Nigeria’s energy transition strategy.

“The deployment of CNG-powered trucks is a strategic initiative designed to support national energy transition goals, not to displace existing jobs,” the company stated. Each truck will be operated by a six-person team, with drivers receiving salaries significantly above the national minimum wage, plus medical cover, pensions, housing allowances, and long-term access to housing loans. The company aims to have 10,000 such trucks in operation by year-end, potentially creating over 60,000 direct jobs.

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

The company highlighted that over 30 refinery licenses have been issued to private players, with active developments by BUA, Aradel, Walter Smith, and the Edo Refinery. “While we are major industry player, our presence has revitalized the downstream sector, reopened previously dormant petrol stations and restored investor confidence,” the management said.

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

Dangote Refinery strongly denied any plans to increase fuel prices. On the contrary, the company claims its operations have stabilized fuel availability and driven down costs. Diesel prices, for instance, have dropped by over 30% in the past year, and petrol prices in Nigeria are now reportedly lower than in oil-rich nations like Saudi Arabia and 40% cheaper than neighboring West African countries.

The company also pointed to its N720 billion investment in CNG infrastructure as evidence of its commitment to reducing logistics costs and improving nationwide fuel distribution.

Dangote stated it maintains a cordial and cooperative relationship with all recognised trade unions, including NUPENG. It rejected accusations of walking out on recent conciliation efforts, stating that the union had not formally communicated any grievances before going public.

“We acknowledge and appreciate the intervention of the Federal Government, particularly the Ministry of Labour and Employment, and remain fully supportive of ongoing efforts to achieve a lasting resolution. We hold both the Minister, Dr Mohammed Dingyadi (Katuka Sokoto) and Mrs. Nkiruka Onyejeocha, in the highest regards, and reject any suggestion that we have acted in a manner that would undermine their involvement. The Hon. Minister granted Mallam Sayyu Dantata the permit to enable him attend to his medication,” the company said, expressing appreciation for the roles played by the Ministry of Labour and Employment and key ministers involved in mediating the dispute.

Since its commissioning just over a year ago, Dangote Refinery has transformed Nigeria into a net exporter of refined fuels, supplying markets as far as the United States. Its production of key by-products such as polypropylene, LPG, and naphtha is said to be catalyzing growth in manufacturing, aviation, and agro-processing sectors.

The company also noted that its domestic LPG supply has led to a noticeable drop in cooking gas prices, promoting cleaner household energy use and reducing dependency on firewood and kerosene.

With over 570,000 direct and indirect jobs created, including through road, power, and water infrastructure projects, Dangote Refinery has positioned itself as a centre for skills development and technology transfer in Nigeria.

Reiterating its commitment to responsible business, Dangote Group concluded by dismissing the monopoly allegations as “recycled falsehoods”, urging other private sector players to follow its lead in investing in Nigeria’s economic future.

“At Dangote, we have chosen to invest boldly in Nigeria’s future and we will continue to do so. It is time others follow suit.”