As Nigeria’s downstream petroleum sector braces for a major shake-up, tanker drivers are expressing growing fears of mass job losses following the impending deployment of 4,000 Compressed Natural Gas (CNG) trucks by Dangote Refinery and Petrochemical Limited. The refinery, owned by Africa’s richest man, Aliko Dangote, has finalized logistics to commence direct fuel distribution to oil marketers, filling stations, and major industries from August 15, 2025.
The development marks a historic shift in Nigeria’s fuel supply chain, with 25 oil marketers already signing direct distribution agreements with the refinery—a sharp rise from just three partners a month ago. This surge highlights growing market confidence in Dangote’s distribution capacity, but it also threatens to displace thousands of independent tanker drivers who have long served as the backbone of petroleum transportation.
Confirming the development, a senior Dangote Group executive revealed that registration by oil marketers is increasing daily as the refinery prepares to roll out products nationwide.
> “Right now, the number of strategic partners has grown to 25. We started with three partners, but now, it has jumped to 25,” the official disclosed.
The refinery’s distribution plan, which promises free product delivery, is aimed at reducing pump prices and improving fuel availability across Nigeria, especially in the northern region. Stakeholders believe this could ease the persistent fuel scarcity challenges caused by high logistics costs.
According to Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), marketers have little choice but to collaborate with Dangote, given the current economic realities.
“Dangote has become the only supplier of petroleum products in Nigeria and West Africa. We simply don’t have any other alternative,” Ukadike said.
“Any model that reduces petroleum prices at dispensing points is beneficial to marketers. Currently, some filling stations cannot finish selling one truck of fuel in a month due to high costs, yet they must still bear operational expenses.”
Despite the optimism, Ukadike warned that the monopoly poses long-term risks and urged other refineries, especially government-owned ones, to commence full operations to foster competition.
While marketers welcome the free delivery scheme, tanker drivers and transporters are alarmed. The National Association of Road Transport Owners (NARTO) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) have scheduled emergency meetings to deliberate on the potential economic fallout for their members.
With Dangote planning to use its own trucks for nationwide distribution, independent tanker drivers worry that their services may no longer be required, leaving many unemployed.
> “Some marketers may need to park their trucks to enjoy free delivery,” an industry analyst noted.
“If Dangote takes over direct delivery, thousands of independent drivers could be out of work.”
Although there are speculations that Dangote may absorb some tanker drivers into its workforce, concerns remain high as many drivers have invested heavily in privately owned trucks that may soon become redundant.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has also urged caution, warning Nigerians against viewing Dangote’s offer as a permanent solution. Billy-Gillis Harry, PETROAN’s National President, likened the move to past monopolies in Nigeria’s flour, sugar, and cement industries.
“We need to be careful about accepting a ‘Greek gift’. In other sectors, initial price drops gave way to monopolistic pricing, leaving consumers worse off in the long run,” Harry cautioned.
Analysts also worry that Dangote’s growing dominance could eventually push competitors out of the market, making consumers vulnerable to future price hikes once the company controls the majority of fuel distribution.
The 650,000-barrel-per-day Dangote Refinery, which began operations in January 2024, currently supplies diesel, aviation fuel, and Premium Motor Spirit (PMS) to most parts of Nigeria. With its distribution capacity now expanding, Dangote’s dominance in the downstream sector seems inevitable—at least in the short term.
Industry players are urging the Nigerian government to speed up the rehabilitation of government-owned refineries and encourage private investments in refining to prevent a full-blown monopoly. Meanwhile, tanker drivers and fuel transporters await the outcome of crucial meetings scheduled for July 31, 2025, in Abuja, where they are expected to declare their stance on the matter.