Borno South Senator, Ali Ndume, has accused fuel importers in Nigeria of attempting to defame the Dangote Refinery with allegations of monopoly in the country’s oil market.
Mr Ndume, a member of the All Progressives Congress (APC), said in a statement on Wednesday that oil marketers failed to maximise the opportunities given to them by successive governments to build refineries, but are now ganging up against Dangote Refinery.
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“Those parading themselves as fuel importers today didn’t seize the initiative to come together to build refineries. Again, during the Muhammadu Buhari administration, licenses were granted to private investors to build modular refineries. How many of them actually scratched the surface, but they are ganging up to falsely accuse Dangote of monopolising the market,” he said.
Two weeks ago, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) threatened a nationwide strike over alleged anti-union practices tied to the deployment of Dangote Refinery’s newly imported Compressed Natural Gas (CNG) trucks.
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NUPENG, backed by the Nigerian Labour Congress (NLC) and the Nigerian Association of Road Transport Owners (NARTO), also accused Aliko Dangote and Sayyu Dantata, the founder of MRS Oil, of trying to monopolise the downstream oil and gas distribution while suppressing workers’ rights.
The strike, however, was suspended on 9 September after the refinery management agreed to recognise workers’ rights to unionise in a deal brokered by the State Security Service (SSS), Finance Minister Wale Edun, and other stakeholders.
Dangote Refinery announced plans to distribute petrol and diesel directly to major users and marketers in June from 15 August.
To ensure the smooth take-off of this scheme, the refinery said it invested in procuring 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers.
But NUPENG claimed drivers of the trucks were compelled to sign undertakings not to join existing unions.
What happened to previous licence
Mr Ndume questioned why earlier refinery licences issued by past governments yielded little results.
“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 the incentives of crude oil allocation.
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“If my memory serves me right, licenses were granted to 12 private operators as far back as 2002 to build refineries and reduce dependence on imported fuel. The second round of licenses was done in 2007 by the then Department of Petroleum Resources (DPR) after revoking the first batch and granted nine new licenses to private investors,” he added.
The senator dismissed monopoly claims, insisting Nigeria’s downstream sector remains deregulated.
“It is wrong to talk about monopoly in a deregulated industry. There are no deliberate bottlenecks against anyone, and no player has been accorded a special concession to the detriment of others.”
He, therefore, called on regulatory bodies in the oil and gas sector to intervene actively in the monopoly allegation raised against Dangote Refinery.
“I urge NUPENG, PENGASSAN, and all concerned stakeholders to engage in constructive dialogue with Dangote rather than inciting division and undue sensationalism in the media. 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,” the lawmaker said.
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