The planned fuel distribution scheme by the Dangote Petroleum Refinery using 4,000 Compressed Natural Gas (CNG)-powered trucks could not commence on Friday due to logistics challenges in China.
The $20 billion Lekki-based refinery had earlier announced plans to deploy the trucks for direct fuel distribution nationwide. However, only 450 units have so far arrived in Nigeria, with an additional 150 expected next week, bringing the total to 600.
A senior Dangote Group executive confirmed the development, explaining that global shipping constraints had hindered the movement of the trucks. “There are not enough vessels leaving China to transport 4,000 trucks and 4,000 tankers at once,” the official disclosed. According to him, 200 trucks arrived in the first shipment, 250 in the second, while another 150 are expected shortly.
With just about 11 per cent of the required trucks available, the refinery’s plan to commence direct fuel supply to customers from August 15 may face adjustments. The company had earlier indicated that at least 60 shiploads of trucks would be delivered within six weeks.
In June, the refinery revealed plans to invest over ₦720 billion in the initiative, projected to save Nigerians more than ₦1.7 trillion annually in fuel distribution costs. The refinery also pledged to absorb about ₦1.07 trillion each year in logistics expenses while supporting over 42 million micro, small, and medium enterprises by lowering energy costs and boosting profitability.
The scheme, according to Dangote Industries, is designed to eliminate distribution bottlenecks, enhance efficiency, curb smuggling, and create over 15,000 direct jobs in logistics and CNG filling stations nationwide.
The plan initially sparked resistance from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), which warned that bypassing existing distributors could lead to disruption, job losses, and long-term product scarcity. The association later confirmed that it had reached an agreement with Dangote, under which the refinery would supply products to bulk buyers rather than directly to end users.
NOGASA’s National Publicity Secretary, Chinedu Ukadike, said the deal preserved the role of existing distributors. “Dangote has agreed to channel supply through bulk buyers, which safeguards our investments in the supply chain. With this, we no longer have issues,” he stated.
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