The Dangote Petroleum Refinery has announced that its direct distribution of petroleum products to end-users will not only tackle longstanding logistical inefficiencies but also create thousands of jobs, cut inflation, and potentially reduce pump prices across Nigeria.
In a statement on Tuesday, the company revealed plans to distribute Premium Motor Spirit (petrol), diesel, and other petroleum products directly to key sectors — including petrol stations, manufacturing, telecommunications, aviation, and other heavy consumers — with free logistics support.
The initiative, which includes the deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers, is designed to streamline the nation’s fuel supply chain, reduce the influence of entrenched middlemen, and promote environmental sustainability.
Despite concerns from some market stakeholders — including the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which fears job losses and potential shutdown of filling stations — energy experts have welcomed the move as transformative.
Dr. Abimbola Oyarinu, a university lecturer, noted that the plan could dismantle the longstanding dominance of intermediaries in the distribution chain, such as tanker drivers, who have at times leveraged their position to stall national progress.
“This initiative has the potential to break the grip of powerful middlemen who have historically held entities like NNPCL hostage. But Nigerians will measure its success by its effect on pump prices. If it leads to cheaper petrol, it could ease inflationary pressures,” Oyarinu stated.
Echoing this sentiment, energy analyst Ibukun Phillips described the scheme as “revolutionary,” stressing that it could redefine access and affordability, particularly in underserved rural areas.
“Logistics account for between 10 to 30 per cent of fuel prices. By eliminating this cost, Dangote could help reduce pump prices. Rural communities, which often pay more for fuel despite earning less, stand to benefit significantly. The scheme may also revive dormant filling stations and create more equitable distribution,” she explained.
Phillips added that at least 8,000 drivers would be employed to operate the new fleet of tankers, providing a major boost to job creation.
Kelvin Emmanuel, co-founder of energy consultancy Dairy Hills, emphasised that Dangote’s decision to absorb logistics costs marked a critical shift in Nigeria’s refining ecosystem, long plagued by inefficiencies.
“Rather than monopolistic fears, the real issue is systemic failure. Logistics and regulation have crippled fuel distribution. By addressing these gaps, Dangote is stepping into a vacuum,” Emmanuel said.
He observed that fuel supply remains inconsistent across the country, with Lagos, Abuja, and parts of the southwest enjoying relatively fair pricing, while other regions face sharp disparities.
“Dangote is taking on the responsibilities of transportation, storage, and bridging — duties that should have been addressed long ago. This move responds directly to the sabotage from vested interests resisting change,” he added.
While the scheme has drawn scepticism from certain quarters, industry observers suggest that, if successful, it could reshape Nigeria’s downstream oil and gas landscape — easing distribution challenges, enhancing price stability, and expanding employment opportunities.
