Senator Ali Ndume Warns Against Demonization of Dangote Refinery

Strategic Insights -

Former Senate Leader, Senator Ali Ndume, has urged labour unions and stakeholders in the oil industry to engage in constructive dialogue with Dangote Refinery rather than fueling division and sensationalism. The intervention came in the wake of disputes between Dangote Refinery and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). Ndume accused the unions and some stakeholders of deliberately attempting to demonize Dangote Refinery, citing a "poisonous media narrative" aimed at painting the company in a bad light.

Key Takeaways:

  • Senator Ali Ndume cautioned labour unions and stakeholders in the oil industry against demonizing Dangote Refinery, urging them to engage in constructive dialogue instead.
  • The dispute between Dangote Refinery and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has heightened tensions in the sector.
  • Ndume highlighted the lack of progress made by previous refinery licensees, citing examples from 2002 and 2007 when licenses were granted to private investors to build refineries, but many failed to deliver.
  • The Petroleum Industry Act (PIA) has deregulated the sector, making it incorrect to accuse Dangote of seeking monopoly.
  • Ndume called on regulators, including the Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to prevent disputes from disrupting the distribution of petroleum products nationwide.
  • The Department of State Services (DSS) has intervened in the dispute, but tensions remain high.

Statistics:

  • 12 private operators were granted refinery licenses in 2002 by the Department of Petroleum Resources.
  • Nine new licenses were granted in 2007 to private investors, following the revocation of the initial batch.
  • Licenses were granted to private investors to build modular refineries during the Buhari administration.
  • The Petroleum Industry Act (PIA) has deregulated the sector.

Sources:

  • Nigerian Tribune (no date mentioned)
  • Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) (no date mentioned)
  • Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) (no date mentioned)