- Dangote Refinery will begin direct fuel distribution with 1,000 CNG-powered trucks in the South-West, ahead of the arrival of 3,000 more by September.
- Despite resistance from oil suppliers, the ₦720bn scheme aims to cut fuel distribution costs, create 15,000 jobs, and curb smuggling.
The Dangote Petroleum Refinery will soon launch its direct fuel distribution scheme after receiving 1,000 Compressed Natural Gas-powered trucks in Nigeria.
With the new fleet, the $20 billion Lekki-based refinery will begin supplying fuel directly to marketers in Lagos, Ogun, and other South-West states while awaiting delivery of 3,000 additional trucks from China.
Company officials and sources familiar with the plan said shipments are arriving in batches and expressed confidence that all trucks will reach Nigeria by the end of September.
Initially scheduled to start on August 15, the scheme stalled after the refinery received only 450 trucks due to shipping bottlenecks in China. Sources said limited vessel availability delayed transportation of the full 4,000 CNG-powered trucks ordered for the programme.
“We have received up to 1,000 trucks. More are still coming, and we believe all will be delivered by the end of September,” one source said, adding that distribution will begin in the South-West before expanding nationwide.
A senior Dangote Group executive said, “Not enough ships are coming from China to handle 4,000 trucks and 4,000 tankers. That is the major challenge.” The company received 200 trucks in the first shipment, 250 in the second, and 150 in the third, while others remain in transit.
Consultants to the group confirmed that all trucks have been fully paid for and are awaiting vessels in China. “We are certain that before mid-September, we would have covered the major part of the country,” one said.
In June, the refinery announced it was investing ₦720 billion to deploy 4,000 CNG-powered trucks across Nigeria, estimating that the programme would save Nigerians over ₦1.7 trillion annually in fuel distribution costs.
The company said it would absorb more than ₦1.07 trillion in logistics expenses yearly, lowering fuel distribution costs, reducing inflationary pressures, and boosting profitability for more than 42 million micro, small, and medium enterprises.
The initiative also aims to curb petroleum smuggling, revive dormant filling stations, and create over 15,000 direct jobs in logistics, including drivers, station managers, and attendants at new CNG stations.
Dangote plans to bypass intermediaries by delivering fuel directly to filling stations, telecom firms, and bulk users. The strategy has drawn opposition from the Natural Oil and Gas Suppliers Association of Nigeria, which warned that bypassing existing channels could disrupt supply, trigger scarcity, and collapse traditional distribution networks.
Despite opposition, Dangote Industries said the scheme remains central to its commitment to reducing logistics bottlenecks, promoting environmental sustainability, and supporting Nigeria’s economic growth.