Dangote Refinery Set to Commence Direct Fuel Distribution as 1,000 CNG Trucks Arrive Nigeria

By Business Desk | Akahi News

Lagos, Nigeria — Barring any last-minute changes, the Dangote Petroleum Refinery is expected to kick off its much-anticipated direct fuel distribution scheme in the coming days, following the arrival of 1,000 Compressed Natural Gas (CNG)-powered trucks into Nigeria.

Officials at the $20bn Lekki-based refinery confirmed that the trucks, part of a larger order of 4,000 units from China, will be deployed immediately for the distribution of refined products to marketers in Lagos, Ogun, and other South-West states. This marks the beginning of a new phase in the company’s strategy to bypass traditional distribution bottlenecks in Nigeria’s petroleum supply chain.

Logistics Delays Stall Earlier Plans

The scheme had originally been scheduled to commence on August 15, but logistics challenges in China delayed the delivery of the full fleet. A senior executive within the Dangote Group explained that “there were not enough ships coming from China to handle 4,000 trucks and 4,000 tankers,” causing a significant setback.

Earlier reports revealed that the refinery had only received 450 trucks by last week, with an additional 150 in transit, bringing the total to 600. However, fresh deliveries have since raised the number to 1,000 trucks as of Sunday.

“All the trucks have been paid for and are ready in China, but insufficient shipping capacity has slowed down delivery. Despite that, with the 1,000 units already here, we will not wait until the full order is completed before commencing distribution,” another source said.

Rollout to Begin in South-West

According to insiders, fuel distribution will begin with the South-West region before gradually expanding to other zones once more trucks arrive.

“We have received up to 1,000 trucks. More are still coming, and we believe all will be delivered by the end of September,” a refinery official said.

Another consultant working with the group added: “By September, everything should be set. Nigerians should bear with us. We are starting with Lagos and the South-West, then extending to other regions as additional consignments arrive. With the schedule we have, by mid-September we should have covered the major parts of the country.”

The Group Chief of Branding and Communication at Dangote Industries Limited, Mr. Anthony Chiejina, had earlier disclosed that the refinery was expecting 60 shiploads of trucks over a six-week period.

A ₦720 Billion Investment in Fuel Logistics

In June, the Dangote refinery announced it was investing over ₦720 billion to deploy 4,000 CNG-powered trucks for nationwide fuel distribution. The initiative, the company said, would save Nigerians over ₦1.7 trillion annually in distribution costs while absorbing about ₦1.07 trillion yearly in logistics expenses.

The refinery estimates that the project will significantly benefit more than 42 million micro, small, and medium enterprises (MSMEs) by lowering energy costs, boosting profitability, and stimulating economic growth.

“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,” a company statement read.

The programme is also expected to create over 15,000 direct jobs, including drivers, station managers, and attendants at the new CNG filling stations that will accompany the distribution rollout.

Potential to Disrupt Petroleum Supply Chains

While many Nigerians welcome the initiative, it has sparked concerns within existing petroleum distribution networks. Members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) previously warned that Dangote’s plan to bypass traditional tanker drivers and middlemen could destabilise the sector.

NOGASA leaders cautioned that a direct-to-market distribution strategy might lead to “nationwide disruption, product scarcity, and the collapse of existing supply networks” if not properly managed. They urged Dangote Refinery to enter dialogue with stakeholders before full-scale implementation.

Industry Implications

Analysts note that if successful, the scheme could mark a turning point in Nigeria’s petroleum logistics. By slashing costs, reducing smuggling, and ensuring a more environmentally friendly distribution system, Dangote Refinery may revolutionise fuel supply in Africa’s largest economy.

With 1,000 trucks already on ground and 3,000 more expected by the end of September, all eyes are now on the refinery to see how soon it can begin delivering products directly to filling stations and bulk users — a move that could reshape Nigeria’s downstream oil sector for decades to come.

Akahi News | http://www.akahinews.org