Plans by the Dangote Petroleum Refinery to commence direct fuel distribution across Nigeria with 4,000 Compressed Natural Gas (CNG)-powered trucks have suffered a setback following logistics challenges in China, forcing a delay in the rollout.
The $20bn refinery, located in Lekki, Lagos, had announced that the initiative would begin on August 15 with thousands of trucks specially ordered from China to ease petroleum product distribution nationwide. However, The PUNCH learnt that only 450 trucks had been delivered so far, representing about 11 per cent of the expected fleet.
A senior executive of the Dangote Group, who spoke on condition of anonymity, confirmed that shipping constraints from China were hampering deliveries. “There are not enough ships coming from China to handle 4,000 trucks and 4,000 tankers,” the official said.
According to the source, the first batch of 200 trucks had earlier arrived, followed by another 250, while 150 more are expected in the coming week. The refinery anticipates at least 60 shiploads of trucks over the next six weeks to meet its target.
Anthony Chiejina, Group Chief of Branding and Communication at Dangote Industries Limited, explained that the company was investing over N720bn in the deployment of the CNG-powered trucks. He said the scheme, when fully operational, would cut annual fuel distribution costs by more than N1.7tn, reduce inflationary pressures, and create over 15,000 jobs across the logistics chain.
“This strategic programme is part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development,” Chiejina noted in a statement.
The refinery also projected that the plan would revitalise dormant filling stations, support micro, small, and medium enterprises, and curb cross-border smuggling of petroleum products.
When the scheme was unveiled in March, it was designed to bypass middlemen by distributing products directly to filling stations, telecom operators, and other bulk users. However, the announcement triggered resistance from members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and tanker drivers, who feared job losses and supply disruptions.
NOGASA President, Bennett Korie, had earlier warned that Dangote’s direct distribution strategy could destabilise existing supply networks. The association appealed to President Bola Tinubu to intervene, stressing that no single operator could sustainably manage nationwide petroleum distribution.
Following negotiations, however, Dangote Group and stakeholders reached a compromise. NOGASA spokesman, Chinedu Ukadike, confirmed that the refinery had agreed to sell petroleum products to bulk buyers rather than distributing directly to end-users.
“I want to say that Dangote heeded our plea by agreeing with us that they will be sending these products to the bulk buyers, who are the suppliers. Based on that, we won’t have issues again,” Ukadike says.
