Dangote Petroleum Refinery is set to commence its long-awaited direct fuel distribution scheme with the rollout of 1,000 Compressed Natural Gas (CNG)-powered trucks. The initiative, which had earlier faced delays due to shipping bottlenecks in China, will begin in Lagos, Ogun, and other South-West states before expanding nationwide.
Officials at the $20bn Lekki-based refinery confirmed that the latest consignment raised the total fleet in-country to 1,000, while 3,000 more trucks are expected before the end of September.
Logistics hurdles stall August deadline
The refinery had initially targeted an August 15 start date with a full complement of 4,000 trucks. However, industry insiders disclosed that limited shipping capacity from China delayed the delivery schedule.
A senior Dangote executive explained that the company struggled to secure sufficient vessels for transporting the large fleet of trucks and tankers. “We had the trucks ready in China, but moving 4,000 units at once posed a major logistics challenge,” the source noted.
Despite this, the refinery has resolved to launch distribution with the available 1,000 trucks instead of waiting for the full delivery.
Direct-to-market strategy set to reshape fuel logistics
By bypassing traditional middlemen, Dangote aims to deliver fuel directly to filling stations, bulk buyers, and critical sectors such as telecommunications. The company believes this model will cut distribution costs by more than ₦1.7tn annually while easing inflationary pressures and supporting over 42 million small businesses.
Industry analysts say the scheme could also revitalise dormant filling stations, absorb more than ₦1.07tn yearly in logistics costs, and create over 15,000 direct jobs across the value chain.
Moreover, the CNG-powered trucks align with Nigeria’s energy transition goals, reducing dependence on diesel-powered haulage while promoting environmental sustainability.
Concerns from existing marketers ease after dialogue
Dangote’s direct distribution blueprint initially unsettled existing marketers, tanker drivers, and members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), who feared the collapse of their supply networks.
However, industry consultations have helped to ease tensions. Leaders from both NOGASA and the National Association of Road Transport Owners confirmed they had met Dangote officials to iron out concerns.
Analysts believe these engagements will be critical in ensuring smooth integration of Dangote’s new supply model into Nigeria’s petroleum logistics chain.
Nationwide coverage by September
With 60 additional shiploads of trucks expected in the coming weeks, Dangote plans to achieve nationwide coverage by mid-September. Officials expressed confidence that the full fleet of 4,000 trucks would be on ground before the end of next month.
If successful, the rollout could transform Nigeria’s downstream sector by addressing persistent logistics bottlenecks, curbing cross-border smuggling, and stabilising pump prices.
The refinery’s decision to launch with 1,000 trucks signals a pivotal shift in Nigeria’s petroleum supply chain, potentially redefining how products move from refineries to consumers.