Dangote Refinery Fuel Rollout Stalled as FG, Marketers Clash Over CNG Logistics Plan
The planned nationwide rollout of petroleum products by Dangote Petroleum Refinery has hit a major setback following a deadlock between the Federal Government, oil marketers, and other stakeholders. The scheme, which promised free logistics and aimed to transform fuel distribution across Nigeria, was scheduled to commence on August 15, 2025, but failed to take off due to unresolved concerns.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) convened a high-level meeting involving Dangote officials, marketers, law enforcement agencies, and the Federal Competition and Consumer Protection Commission (FCCPC). However, the dialogue ended without a resolution. Key issues included fears over potential investment losses and job cuts linked to Dangote’s plan to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for direct product delivery to filling stations and large-scale users.
According to the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), the introduction of thousands of CNG trucks poses a significant threat to existing operators and truck owners, as well as to jobs in the downstream sector. “While the CNG trucks promise lower transportation costs, the model could lead to massive job losses and render many investments obsolete,” PETROAN President Billy Gillis-Harry stated. The Independent Petroleum Marketers Association of Nigeria (IPMAN) also raised concerns over potential regional favoritism in product distribution.
Dangote Refinery, however, maintains that the logistics program is designed to cut fuel distribution costs by over ₦1.7 trillion annually and create 15,000 direct jobs. The company is investing ₦720 billion in the initiative, which it claims will boost efficiency, reduce inflationary pressures, and promote environmental sustainability. Currently, only 450 of the planned 4,000 CNG trucks have arrived due to logistics delays in China, further slowing the rollout.
Stakeholders have agreed to reconvene at a later date to resolve outstanding issues. Industry analysts warn that prolonged disagreements could delay the much-anticipated benefits of the refinery’s operations, including reduced transportation costs, improved fuel availability, and economic stimulation. Until a consensus is reached, Nigeria’s largest private-sector fuel distribution project remains on hold.
Source: The sun