The chairman of the Dangote Group, Aliko Dangote, has refuted claims that the roll-out of its over 4,000 CNG-powered bulk trucks could displace existing jobs.
In June, the Dangote Refinery announced plans to create an in-house distribution engine using 4,000 CNG-powered trucks. The move is a strategic initiative that aims to cut yearly gasoline distribution costs and make Nigeria’s fuel supply chain more efficient.
But the Products Retail Outlets Owners Association of Nigeria (PETROAN), a non-profit organization that represents many retail outlet owners and filling stations across Nigeria, said letting Dangote work as both producer and distributor would lead to monopolistic practices, Business Insider Africa reported.
Other union groups including the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) also raised fears of disruption in the current petroleum supply chain, adding that the move could lead to thousands of people losing their jobs, specifically, transporters, suppliers, and small merchants, who depend on the distribution network in place now.
But at a press conference on Monday, Dangote dismissed the claims.
“So these trucks they are fighting about, it will create 24,000 jobs,” he said, according to Business Insider Africa.
“And let me give you another good news, our salary is almost three times or four times their own (Nigerian Union drivers).
“After 5 years free of accidents, since you’re driving hazardous goods, you can apply for and get a housing loan.
“Our drivers earn more than graduates; if you look at what they earn a month, it’s almost four times the minimum wage,” he added.
Nigeria’s current minimum wage is at ₦70,000 per month ($46.98), hence, a Dangote truck driver would be earning anywhere from ₦210,000 ($140) to ₦280,000 ($187), per what Dangote said.
Business Insider cited a Piggyvest report published last year that stated that based on responses from 10,000 individuals across various demographics, “more than one in three Nigerians earn less than ₦100,000, making it the income bracket with the highest number of Nigerians.”
In Nigeria, entry-level jobs, including sales representatives, digital marketers, content writers, graphic designers, and social media managers, have an average salary of ₦150,000, according to this report.
The Dangote Group had earlier said in a statement that each of its CNG-powered trucks will be operated by a six-person team, with drivers not only receiving salaries above the national minimum wage, but also getting medical cover, pensions, housing allowances, and long-term access to housing loans. The company said it aims to have 10,000 such trucks in operation by year-end, possibly creating over 60,000 direct jobs.
