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In a strongly worded statement issued on Wednesday, September 17, 2025, former Senate Leader, Senator Ali Ndume, called for an end to what he described as a deliberate campaign of hostility and misinformation targeting the Dangote Refinery. The senator urged labour unions, petroleum marketers, and other stakeholders in Nigeria’s downstream oil sector to prioritize constructive dialogue over divisive rhetoric, emphasizing the need to balance labour rights with the broader imperatives of national development. His intervention comes amid escalating tensions between the management of Dangote Refinery, the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), which have raised concerns about the stability of the nation’s petroleum supply chain.
Background of the Dispute
The ongoing face-off between Dangote Refinery and key stakeholders in the oil and gas sector has sparked widespread debate, with implications for Nigeria’s energy security and economic stability. At the heart of the dispute are two major issues: a labour-related conflict involving NUPENG and accusations of anti-competitive practices leveled by DAPPMAN.
NUPENG recently embarked on industrial action, alleging that Dangote Refinery has refused to allow truck drivers employed by the refinery to join the union, a move the union claims violates the Trade Union Act. The Act, which governs labour relations in Nigeria, mandates that workers have the right to form or join trade unions of their choice without fear of victimization. NUPENG argues that Dangote’s alleged resistance to unionization undermines workers’ rights and sets a dangerous precedent for labour relations in the oil and gas sector.
On the other hand, DAPPMAN has accused Dangote Refinery of engaging in practices that stifle competition in the downstream oil sector. Specifically, the association claims that the refinery is selling petroleum products to international traders at lower prices than those offered to Nigerian marketers. This, DAPPMAN argues, creates an uneven playing field and threatens the viability of local marketers who rely on fair access to petroleum products to sustain their businesses.
The Department of State Services (DSS) has intervened to mediate the disputes, holding meetings with representatives from Dangote Refinery, NUPENG, and DAPPMAN in an effort to de-escalate tensions. However, the standoff continues to generate significant controversy, with potential ripple effects on the availability and pricing of petroleum products across Nigeria.
Ndume’s Call for Dialogue and Unity
In his statement, Senator Ndume, who represents Borno South, condemned what he described as a “poisonous narrative” aimed at tarnishing the reputation of Dangote Refinery. He argued that the refinery, a $19 billion project and one of the largest in the world, represents a critical milestone in Nigeria’s quest for energy self-sufficiency. Ndume urged all parties involved to eschew sensationalism and embrace dialogue to resolve their differences.
“I call on NUPENG, PENGASSAN, and all concerned stakeholders to engage in constructive dialogue with Dangote Refinery rather than inciting division and undue sensationalism in the media,” Ndume said. “Our common goal should be to balance labour rights with the imperatives of national development and not put ordinary citizens at the receiving end of a needless power tussle.”
Ndume emphasized that the disputes, if left unresolved, could disrupt the distribution of petroleum products nationwide, leading to fuel shortages, price hikes, and economic hardship for millions of Nigerians. He called on regulators, including the Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to act swiftly to prevent the situation from escalating further.
Debunking Monopoly Claims
A significant portion of Ndume’s statement was dedicated to addressing accusations that Dangote Refinery is attempting to monopolize Nigeria’s oil and gas industry. He described such claims as baseless and misleading, particularly in light of the deregulation of the sector under the Petroleum Industry Act (PIA) of 2021.
The PIA, a landmark piece of legislation, was designed to overhaul Nigeria’s oil and gas industry by promoting transparency, attracting investment, and fostering competition. Among its key provisions is the deregulation of the downstream sector, which allows market forces to determine prices and encourages private sector participation in refining, distribution, and marketing of petroleum products. Ndume argued that in a deregulated market, accusations of monopoly are unfounded, as no single player can dominate an industry open to competition.
“It is wrong to talk about monopoly in a deregulated industry,” Ndume stated. “There are no deliberate bottlenecks against anyone, and no player has been accorded a special concession to the detriment of others.”
To further buttress his point, Ndume provided a historical perspective on Nigeria’s refining sector. He noted that successive administrations since 2002 have granted licenses to private operators to establish refineries, yet many of these licensees failed to deliver on their mandates. “Before Dangote took the risk to build his refinery, previous administrations had granted licenses to many Nigerians. What did they do with it? Some of them only cashed in on crude oil allocations,” Ndume remarked.
He highlighted that licenses were issued as far back as 2002 and 2007, with additional modular refinery licenses granted under the administration of former President Muhammadu Buhari. However, the majority of these licensees either failed to commence construction or abandoned their projects midway. In contrast, Dangote Refinery, located in the Lekki Free Zone in Lagos, has emerged as a fully operational facility capable of processing 650,000 barrels of crude oil per day, significantly reducing Nigeria’s dependence on imported petroleum products.
Ndume argued that it is unfair to accuse Dangote of monopolistic tendencies when other operators had squandered similar opportunities. “Those who failed to build refineries are now turning around to accuse Dangote of attempting to monopolize the industry. This is not only unjust but also counterproductive to our national interests,” he said.
The Role of Dangote Refinery in Nigeria’s Energy Landscape
To fully appreciate the significance of Ndume’s intervention, it is important to understand the role of Dangote Refinery in Nigeria’s energy landscape. For decades, Nigeria, Africa’s largest oil producer, has relied heavily on imported refined petroleum products due to the dilapidated state of its state-owned refineries in Port Harcourt, Warri, and Kaduna. This dependence has cost the country billions of dollars annually in import bills, while also exposing it to the volatility of global oil markets.
The commissioning of Dangote Refinery in 2023 marked a turning point in Nigeria’s energy sector. With its massive capacity, the refinery is expected to meet domestic demand for petrol, diesel, aviation fuel, and other products, with surplus production available for export. This development aligns with the Federal Government’s goal of achieving energy self-sufficiency and positioning Nigeria as a net exporter of refined petroleum products.
Beyond its economic contributions, the refinery has created thousands of direct and indirect jobs, boosting local economies and fostering industrial growth. However, its operations have not been without challenges, including logistical bottlenecks, regulatory hurdles, and now, disputes with labour unions and marketers.
Labour Rights vs. National Interest
Ndume’s call for a balance between labour rights and national interest underscores the delicate interplay between protecting workers and advancing Nigeria’s economic agenda. NUPENG’s insistence on unionizing truck drivers at Dangote Refinery is rooted in the broader struggle for workers’ rights in Nigeria, where labour unions have historically played a critical role in advocating for fair wages, safe working conditions, and job security.
However, Ndume cautioned that industrial actions, if not carefully managed, could have far-reaching consequences for the Nigerian populace. Fuel shortages, for instance, could disrupt transportation, increase the cost of goods and services, and exacerbate inflation, which is already a significant challenge in Nigeria’s economy. As of September 2025, inflation remains a pressing issue, with the rising cost of living affecting millions of households.
Ndume’s appeal for dialogue reflects a pragmatic approach to resolving the dispute. By bringing all parties to the table, he believes a mutually beneficial solution can be reached—one that respects the rights of workers while ensuring the smooth operation of a critical national asset like Dangote Refinery.
DAPPMAN’s Concerns and the Question of Fair Competition
DAPPMAN’s allegations that Dangote Refinery is selling petroleum products to international traders at lower prices than to Nigerian marketers have added another layer of complexity to the dispute. If true, such practices could undermine local marketers, who play a vital role in ensuring the distribution of petroleum products to filling stations and end-users across the country.
However, Ndume’s defense of Dangote Refinery suggests that these claims may be exaggerated or misinterpreted. In a deregulated market, businesses are free to set prices based on supply and demand dynamics, and Dangote Refinery, as a private entity, is not obligated to sell products at uniform rates to all buyers. Moreover, the refinery’s ability to export surplus products is a key component of its business model, as it seeks to generate foreign exchange and compete on the global stage.
To address DAPPMAN’s concerns, Ndume called on regulators to ensure transparency and fairness in the downstream sector. He urged the NMDPRA to investigate the allegations and provide clarity on the pricing mechanisms employed by Dangote Refinery. Such a move, he argued, would restore confidence among marketers and prevent further escalation of the dispute.
Regulatory Oversight and the Path Forward
Ndume’s statement also highlighted the critical role of regulatory bodies in maintaining stability in Nigeria’s oil and gas sector. The Ministry of Petroleum Resources and the NMDPRA are tasked with overseeing the implementation of the PIA and ensuring that all players in the industry operate within the bounds of the law.
The NMDPRA, in particular, has a mandate to promote competition, protect consumers, and ensure the efficient distribution of petroleum products. Ndume urged the agency to take proactive steps to address the current disputes, including mediating between Dangote Refinery, NUPENG, and DAPPMAN, and implementing measures to prevent disruptions in the supply chain.
Furthermore, Ndume called for greater transparency in the licensing and operation of refineries in Nigeria. He noted that the failure of previous licensees to establish refineries underscores the need for stricter oversight and accountability in the allocation of licenses. By ensuring that only serious investors are granted licenses, the government can prevent a repeat of past failures and foster a more competitive refining sector.
Broader Implications for Nigeria’s Economy
The disputes involving Dangote Refinery have broader implications for Nigeria’s economy, particularly in the context of ongoing economic reforms. The removal of fuel subsidies in 2023, coupled with the deregulation of the downstream sector, has transformed the dynamics of the oil and gas industry. While these reforms have opened up opportunities for private sector participation, they have also introduced new challenges, including price volatility and supply chain disruptions.
Dangote Refinery, as a flagship project, is seen as a test case for Nigeria’s ability to leverage private investment to address longstanding economic challenges. Its success could inspire other investors to enter the refining sector, creating jobs, reducing import dependence, and boosting government revenue. Conversely, prolonged disputes and negative publicity could deter investment and undermine confidence in the sector.
Ndume’s intervention reflects a recognition of these stakes. By calling for dialogue and rejecting false monopoly claims, he seeks to protect the refinery’s contributions to Nigeria’s economy while addressing legitimate concerns raised by labour unions and marketers.
Conclusion
Senator Ali Ndume’s call for dialogue and unity in the face of tensions involving Dangote Refinery is a timely reminder of the need for collaboration in Nigeria’s oil and gas sector. As the country navigates the complexities of a deregulated market, stakeholders must work together to ensure that the benefits of projects like Dangote Refinery are maximized for the nation’s benefit.
By rejecting baseless monopoly claims and advocating for a balanced approach to labour rights and national interest, Ndume has set the tone for a constructive resolution to the current disputes. The involvement of regulatory bodies like the NMDPRA will be crucial in ensuring transparency, fairness, and stability in the downstream sector.
As Nigeria continues its journey toward energy self-sufficiency, the success of Dangote Refinery will depend not only on its operational capacity but also on the ability of all stakeholders to collaborate in good faith. Ndume’s message is clear: dialogue, not division, is the path to a prosperous and sustainable future for Nigeria’s oil and gas industry.
