With less than 30 days to the launch of its 4,000 Compressed Natural Gas (CNG) trucks, Dangote Refinery and Petrochemical Limited is ramping up efforts to begin direct fuel distribution to marketers and key economic sectors by August 15, Sunday PUNCH reports.
As of Friday, at least 25 oil marketers had signed up with Dangote for direct supply—up from just three previously—highlighting growing alignment between the refinery and downstream players.
Job Loss Concerns Among Tanker Drivers
However, this move has sparked anxiety among tanker drivers, who fear job losses as Dangote’s in-house fleet could displace independent fuel transporters. Though many drivers currently operate from Dangote’s gantries, the new direct delivery model might phase them out.
The National Association of Road Transport Owners (NARTO) confirmed that consultations are ongoing, with President Yusuf Othman stating that stakeholders will meet soon to finalize their stance.
Dangote’s Disruption in Fuel Supply Chain
The refinery had previously announced plans to supply PMS, diesel, and aviation fuel directly to retail stations, manufacturers, and telecom and aviation firms—marking a major shift in Nigeria’s fuel supply chain. The move is designed to reduce logistics costs, improve availability, and tackle the inefficiencies caused by import dependence.
According to a Dangote Group executive, preparations are in top gear:
“More marketers are registering ahead of the launch. We’ve gone from three strategic partners to 25,” the source confirmed.
Marketers Join In—But Warn of Monopoly Risks
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), said members had little choice but to align with Dangote:
“We don’t have alternatives. Dangote has become the sole supplier of petroleum products in Nigeria and West Africa. Marketers are applying to join the free distribution scheme.”
He added that many marketers are struggling due to high fuel prices and slow product turnover, making the free delivery option economically attractive.
However, Ukadike also warned of the dangers of monopoly and called on other refineries—especially government-owned ones—to come online and restore competition.
Suppliers, Retailers Raise Red Flags
Meanwhile, fuel suppliers and associations have expressed concerns about Dangote’s growing dominance.
The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has scheduled a national meeting on July 31 to address the implications of the refinery’s direct distribution plan on its members’ businesses.
Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged caution. President Billy-Gillis Harry described the scheme as a potential “Greek gift”:
“We’ve seen this play out in the cement, flour, and sugar markets. Once competitors are pushed out, prices tend to rise again. Nigerians must be vigilant.”
Refinery Nearing Full Capacity
The 650,000-barrel-per-day refinery, which began operations in January 2024 with diesel and aviation fuel, commenced PMS supply in September 2024. By February 2025, Dangote reported reaching 85% capacity, with full-scale operations in sight.
As the August 15 rollout approaches, all eyes are on the refinery’s next steps—and the broader impact on Nigeria’s fuel distribution landscape.