With less than a month to the rollout of 4,000 Compressed Natural Gas (CNG) trucks by Dangote Refinery and Petrochemical Limited, Nigeria’s fuel distribution sector is bracing for a major shake-up. Already, 25 oil marketers have signed onto the refinery’s direct fuel supply scheme, up from just three initially, signaling growing market alignment with Dangote’s logistics strategy ahead of the August 15 launch.
The move, designed to bypass traditional distribution channels and deliver fuel directly to filling stations and major consumers, has triggered concern among petroleum tanker drivers, many of whom now fear mass job losses.
Industry insiders say the Dangote Refinery’s plan to supply Premium Motor Spirit (PMS), diesel, and aviation fuel directly to oil marketers, retailers, and large-scale consumers could upend the conventional supply chain that tanker operators and private truck owners have long relied on.
Speaking to reporters, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, confirmed that marketers had little choice but to align with Dangote, calling him “the only supplier of petroleum products in Nigeria and West Africa.”
Ukadike said the free delivery model offers relief in a sector plagued by high logistics costs and poor sales turnover, especially in the North. However, he warned that the current monopoly is not sustainable and called on government-owned refineries to resume operations to ensure market balance.
Meanwhile, tanker drivers under the National Association of Road Transport Owners (NARTO) are reportedly in consultations with stakeholders over the implications of the new distribution model. National President Yusuf Othman declined to comment fully but confirmed ongoing talks.
Adding to the growing anxiety, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has scheduled a high-level meeting on July 31 to review the impact on its members, including truck operators and independent suppliers.
On another front, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) cautioned that Dangote’s offer may be a “Greek gift.” PETROAN President Billy-Gillis Harry compared the move to similar dominance in the cement and sugar markets, warning that initial short-term relief may give way to long-term price hikes once competitors are driven out.
The 650,000 barrels-per-day Dangote Refinery began operations in January 2024 with diesel and aviation fuel. Its PMS production commenced in September 2024 and currently covers a significant share of Nigeria’s fuel demand, with the refinery now operating at 85 percent capacity.
As the rollout date approaches, stakeholders agree that Dangote’s growing hold on the downstream sector presents both opportunities and risks—economic relief on one hand, and fears of monopoly and job displacement on the other.
