The launch of Dangote Refinery’s direct fuel distribution scheme has upended Nigeria’s downstream petroleum sector, as bulk fuel consumers and filling stations abandon traditional middlemen for free, direct deliveries from Africa’s largest refinery.
While speaking, the National Association of Road Transport Owners (NARTO) President, Yusuf Othman has raised alarm, saying that thousands of jobs and investments are at risk. He said on a live programme on TVC News, condemned the refinery’s free delivery model, describing it as a “delicate situation” that sidelines transporters with existing supply contracts.
“We have up to 30,000 trucks across the country. Our members signed agreements with several companies and even used them to secure bank loans for trucks. Now, those agreements are at stake because a big player is supplying directly and delivering for free,” Othman said.
According to him, Dangote’s action contravenes Section 212 of the Petroleum Industry Act (PIA), and has called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene.
Despite the backlash, Dangote’s logistics-free distribution has gained momentum. The refinery deployed over 1,000 compressed natural gas (CNG), powered trucks last week to deliver petrol across Lagos, Ogun, Ondo, Oyo, Osun, Ekiti, Edo, Delta, Rivers, Kwara, and Abuja.
The scheme also slashed pump prices: Lagos and South-West states now sell at ₦841 per litre, while Abuja, Rivers, Delta, Edo, and Kwara states retail at ₦851 per litre, down from ₦865.
Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Abubakar Shettima, confirmed that deliveries had begun. “Dangote trucks are already discharging products across Lagos, Ondo, Ogun, and Ibadan. Marketers are pleased because costs are dropping,” he said.
While the negotiations continue, stakeholders are bracing up for a major shift in the petroleum supply chain, one that could redefine power dynamics in the Nigeria’s oil and gas sector.
