Dangote Refinery Denies Monopoly Claims, Says Oil Sector Open to Competition

By Mercy Gadia Adi

 

Dangote Petroleum Refinery has dismissed allegations of monopolistic practices, insisting that Nigeria’s oil sector remains open and competitive under a deregulated framework.

 

The company’s response came on Friday, September 12, 2025, following accusations by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) on September 5.

 

In a statement, the refinery stressed that more than 30 licences have already been granted to private operators by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). It cited active projects by BUA, Aradel, Walter Smith, and the Edo Refinery as evidence of ongoing industry participation.

 

“Responding to accusations of monopolistic behaviour, Dangote Refinery emphasised its compliance with Nigeria’s deregulated oil sector. The company highlighted that over 30 refinery licences have been issued to private players, with active developments by BUA, Aradel, Walter Smith, and the Edo Refinery,” the statement read in part.

 

Dangote Refinery also rejected claims of labour abuse, stating that its expansion projects—such as the rollout of compressed natural gas (CNG) powered trucks—are generating thousands of jobs across the value chain. It maintained that employees are free to join recognised trade unions in line with national labour laws.

 

On pricing concerns, the refinery said its operations have stabilised fuel supply and contributed to lower costs. It noted that diesel prices have fallen by more than 30% in the past year, while petrol remains competitive compared with prices in neighbouring West African countries.

 

Since commissioning, the refinery has emerged as a net exporter of refined fuels, supplying international markets while producing by-products such as liquefied petroleum gas (LPG), polypropylene, and naphtha for the domestic manufacturing, aviation, and agro-processing industries. The increased LPG supply, it added, has helped reduce cooking gas prices, boosting access to cleaner household energy.

 

The company also announced plans to begin direct petrol (PMS) supply to 11 states starting Monday, September 15, 2025.

 

According to a press release issued Thursday, pump prices have been set at ₦841 per litre for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and ₦851 per litre for Abuja, Delta, Rivers, Edo, and Kwara.

 

Despite the assurances, NUPENG has accused the refinery of violating a recent agreement on workers’ rights.

 

The union alleged that refinery drivers were ordered to remove union stickers from trucks and that management attempted to forcefully load the facility, contrary to protocols agreed upon in the presence of three federal ministers and the Deputy Director General of the Department of State Services (DSS).

 

It further claimed that Dangote Group executive Sayyu Aliu Dantata flew over the site in a helicopter and summoned naval personnel to intimidate union officials.

 

In response, NUPENG placed members on red alert and warned that it may resume its suspended industrial action. The union urged the Federal Government, civil society groups, and international labour bodies to safeguard workers’ rights, stressing that corporate influence does not place any individual above the law.

 

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