Union Membership Voluntary, Not Mandatory – Dangote Refinery

Dangote Petroleum Refinery has clarified that employee participation in trade unions is entirely voluntary, aligning with both the Nigerian Constitution and International Labour Organisation standards. This statement was issued in response to what the company described as misrepresentations by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) regarding its labor practices.

The refinery emphasized that it does not obstruct or influence employees’ decisions to join legally recognized unions. It stated that attributing union-related decisions made by drivers to the company was inaccurate and misleading.

Addressing allegations that drivers were coerced into signing contracts prohibiting union membership, Dangote firmly denied the claims, calling them baseless. The company urged NUPENG to resolve its internal issues with the Petrol Tanker Drivers unit without involving the refinery in unrelated disputes.

Dangote Petroleum Refinery reiterated its commitment to maintaining positive relations with all recognized trade unions, including NUPENG. It noted that it has consistently supported union activities within its premises, offering office space and facilitating member engagement and dues collection without interference.

The company expressed its support for ongoing mediation efforts led by the Ministry of Labour and encouraged NUPENG to participate constructively in the dialogue process. It also called on the union to avoid making statements that could hinder national economic recovery initiatives championed by President Bola Ahmed Tinubu.

Dangote Industries Limited, which identifies as Nigeria’s largest private-sector employer, highlighted its dedication to employee welfare, safety, and career development. It revealed that drivers under its new Compressed Natural Gas (CNG) truck initiative receive compensation packages that are triple the national minimum wage, along with benefits such as group insurance, pensions, medical allowances, housing support, and loan access.

The company announced that the deployment of 10,000 CNG-powered trucks is expected to generate at least 60,000 direct jobs and numerous indirect employment opportunities. The N720 billion investment aims to reduce logistics costs, extend the benefits of domestic refining to rural areas, and contribute to the Federal Government’s energy transition strategy.

Since the refinery’s launch a year ago, Nigeria has transitioned from being Africa’s largest importer of refined fuel to a net exporter, with shipments reaching the United States. The refinery also produces valuable by-products like polypropylene, base oils, and jet fuel, which are fueling growth in sectors such as plastics, aviation, lubricants, and agro-processing.

Dangote reported that its operations have helped eliminate recurring fuel shortages, stabilize fuel prices, and ensure the supply of high-quality products despite challenges posed by substandard imports. It also noted the creation of over 570,000 jobs across logistics, construction, and maintenance, with host communities benefiting from improved infrastructure including roads, electricity, and water.

The company has become a center for skills development, training thousands of Nigerian engineers and technicians in advanced refining technologies. Addressing concerns about monopolistic practices, Dangote dismissed such claims as unfounded and reiterated its commitment to investing in Nigeria’s future, urging others to do the same.