Dangote Dares NUPENG to Reveal Alleged $18bn Refinery Mismanagement

Tensions between Africa’s richest man, Aliko Dangote, and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) have escalated sharply following fresh accusations surrounding the operations of the $18 billion Dangote Petroleum Refinery. In a strong rebuttal to claims of financial impropriety and poor labour practices, Dangote has openly challenged the union to “unmask the true squanderers” of the massive refinery project, insisting that his company has nothing to hide.

The Dangote Refinery, located in the Lekki Free Zone, Lagos, is designed to refine up to 650,000 barrels of crude oil per day, making it Africa’s largest single-train facility. Since its commissioning, the refinery has been viewed as a critical asset for Nigeria’s energy security, with hopes that it would reduce the country’s long-standing dependence on imported refined petroleum products. However, NUPENG’s growing confrontation with the refinery’s management has cast a shadow over the optimism that greeted its launch.

NUPENG has raised concerns about transparency in the project’s financial structure and alleged restrictions on workers’ rights. The union has repeatedly accused the refinery of discouraging trade unionism among staff, a charge Dangote Group firmly denies. The company has maintained that while it respects the right of workers to join unions, membership must remain voluntary and not coerced.

In his latest response, Dangote described NUPENG’s claims as “baseless, unfounded, and harmful to the refinery’s reputation.” He emphasized that the $18 billion investment was funded through traceable and verifiable channels, including equity contributions, loans, and reinvested profits. According to him, every stage of the refinery’s development was subjected to rigorous financial scrutiny, both internally and externally, making it impossible for funds to be mismanaged on the scale alleged.

“Those who claim money was squandered must come forward with proof. This project is not a political football; it is a national asset meant to save Nigeria billions of dollars annually in foreign exchange. If NUPENG has facts, let them put them before the public,” Dangote said.

The refinery’s role in Nigeria’s economy makes this clash particularly sensitive. Following the removal of fuel subsidies in 2023, pump prices have risen steeply, placing immense pressure on households and businesses. The Dangote Refinery is expected to provide relief by supplying locally refined products at more stable rates. Industry watchers worry that unresolved disputes between management and unions could disrupt production schedules, undermining government efforts to stabilize fuel availability.

Experts have also pointed out that the controversy is symptomatic of deeper trust issues in Nigeria’s oil and gas sector. For decades, billions of dollars have been poured into the turnaround maintenance of state-owned refineries in Port Harcourt, Warri, and Kaduna, with little to show for it. Against that backdrop, the private sector-led Dangote Refinery was seen as a beacon of hope. Any hint of mismanagement or labour discord risks weakening investor confidence not just in Dangote’s project but in Nigeria’s ability to manage large-scale industrial investments.

Public reactions to the feud have been mixed. Supporters of Dangote argue that his investments have consistently delivered value and that the refinery should be given breathing space to stabilize operations. Critics, however, insist that transparency and labour rights must not be compromised in the name of expediency, stressing that the sheer size of the project requires it to be held to the highest standards.

Industry unions such as NUPENG remain defiant, insisting that they will continue to hold the refinery accountable. The union has hinted at potential strikes or picketing actions if their concerns are not addressed, though such moves could trigger widespread fuel shortages. Some stakeholders have therefore urged the federal government to intervene before the situation spirals out of control.

Meanwhile, energy analysts believe that Dangote’s decision to challenge NUPENG to produce evidence is a strategic one. By putting the onus on the union, the company is effectively shifting the debate from vague accusations to concrete proof, which could help clear its name. However, they caution that if NUPENG does present credible evidence, the refinery could face deeper scrutiny and even regulatory intervention.

For now, the refinery continues operations, but the standoff highlights the fragile balance between private enterprise and labour activism in Nigeria’s oil and gas industry. Both sides appear unwilling to back down, setting the stage for a prolonged confrontation that could have far-reaching implications.

At stake is more than just the reputation of Africa’s biggest industrial project—it is the credibility of Nigeria’s broader economic reforms and its ambition to attract large-scale investments into critical sectors. Whether Dangote’s challenge pushes NUPENG to produce evidence or leads to a negotiated truce, the outcome will be closely watched both at home and abroad.