Ndume Backs Dangote Refinery, Chides Saboteurs Threatening Nigeria’s Energy Future

Sunday Aborisade in Abuja 

In the thick of an increasingly public feud within Nigeria’s downstream oil sector, the Borno South Senator, Ali Ndume, has issued a strong appeal for restraint, urging stakeholders to stop what he described as a coordinated media demonization campaign against the Dangote Refinery. 

The former Senate Leader, in a statement on Wednesday, warned that the barrage of accusations directed at the $19 billion privately-owned refinery risks undermining national economic interest, even as the Federal Government has created a level playing field for all investors in the oil and gas space.

Ndume’s comments follow weeks of tension between the management of the Dangote Refinery and two powerful players in the oil distribution ecosystems — the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). 

NUPENG recently embarked on a strike, shutting down several petroleum depots across the country in protest against the alleged refusal of the Dangote Refinery to allow its truck drivers join the union, a move the union insists is a violation of the Trade Union Act.

On a separate front, DAPPMAN accused the refinery of anti-competitive practices, alleging that it sells petroleum products at discounted prices to international buyers, while offering the same products to Nigerian marketers at significantly higher rates. 

This, according to DAPPMAN, could lead to the collapse of indigenous businesses and entrench a monopoly in the sector.

Although the Department of State Services (DSS) has reportedly intervened to resolve the dispute between the refinery and NUPENG, the broader conflict continues to generate tension and headlines, prompting Ndume to break his silence.

In the statement issued in Abuja, Ndume cautioned against what he described as a “poisonous media narrative” that seeks to cast the Dangote Refinery as a threat to fair competition and national interest. 

He noted that contrary to the claims of its critics, the refinery represents the kind of bold, long-term investment the country desperately needs to reduce dependence on imported fuel and build economic resilience.

Ndume said: “Before Dangote took the risk to build his refinery, previous administrations had granted licences to many Nigerians to do the same.

“What did they do with it? Some simply capitalized on crude oil allocation incentives without ever breaking ground on a refinery project.”

Ndume recalled that as far back as 2002, at least 12 licences were issued to private sector players to build refineries. 

He said the licences were later revoked, and a new round of permits issued in 2007 by the then Department of Petroleum Resources (DPR). 

Yet, according to him, most of the licensees failed to act.

According to him, “Those parading themselves as fuel importers today didn’t seize the initiative to come together and build refineries.

“Again, under the late Muhammadu Buhari administration, modular refinery licences were issued. 

“How many of them actually scratched the surface? But they are now ganging up to accuse Dangote falsely of monopolizing the market.”

The senator stressed that the Petroleum Industry Act (PIA) provides a robust legal framework for a deregulated downstream sector, where fair competition, not protectionism, should thrive.

He stated that the Dangote Refinery, which has the capacity to process 650,000 barrels of crude oil per day, is a vital strategic asset and not a threat, adding that: “It is wrong to talk about monopoly in a deregulated industry.

 “There are no deliberate bottlenecks against anyone. No operator has been granted special privileges at the expense of others. 

“The government has done its part by creating an enabling environment. It is now up to players in the sector to rise to the challenge.”

He called on regulatory bodies, particularly the Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to take a more active role in resolving the lingering disputes. 

He said failure to do so could jeopardize the smooth distribution of petroleum products across the country, triggering avoidable hardship for millions of Nigerians.

Ndume also urged labour unions, including NUPENG and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), to pursue constructive dialogue with the refinery rather than resorting to strikes and incendiary rhetoric.

He said: “Our common goal should be to balance labour rights with the imperatives of national development.

“We must avoid a situation where ordinary Nigerians become victims of a needless power struggle. Sensationalism and division will only set us back.”

As one of the most ambitious industrial projects in Africa, the Dangote Refinery has long been viewed as a potential game-changer for Nigeria’s oil-dependent economy. 

However, as tensions rise between its management and other industry stakeholders, Ndume’s intervention highlights the delicate balancing act between encouraging investment, safeguarding labour rights, and ensuring a truly competitive oil market. 

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