Dangote Petroleum Refinery has reversed its initial plan to sell refined petroleum products directly to end users, following mounting pressure from fuel marketers, tanker drivers, and industry associations concerned about potential job losses and disruption of Nigeria’s established fuel distribution network.
The refinery had planned to launch its direct fuel distribution scheme on Friday, August 15, utilising some of the 4,000 Compressed Natural Gas (CNG)-powered trucks procured to facilitate nationwide delivery. However, the announcement sparked fears among members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the National Association of Road Transport Owners (NARTO) that the initiative could undermine their businesses and destabilise the supply chain.
NOGASA had warned that bypassing existing distribution channels could result in nationwide fuel scarcity and a collapse of long-standing supplier networks. The association urged the refinery to halt the plan and engage in further dialogue, citing lessons from non-functional refineries under the Nigerian National Petroleum Company Limited. Leaders also called on President Bola Tinubu to intervene, stressing that Dangote alone could not sustain nationwide fuel distribution.
In response, Dangote Petroleum Refinery invited NOGASA and NARTO representatives to discuss possible collaboration. Following consultations, the refinery agreed to sell petroleum products to bulk buyers rather than end users, alleviating fears of widespread job losses among fuel marketers and tanker operators.
Chinedu Ukadike, NOGASA National Publicity Secretary, told our correspondent that the agreement ensures the integrity of existing supply channels. “Dangote heeded our plea. Products will be sent to bulk buyers, who will then distribute to end users. This preserves our supply chain investments and safeguards our livelihoods,” he said.
Ukadike explained that initial panic among marketers stemmed from a misunderstanding that Dangote would retail fuel directly to consumers, including telecom masts, hotels, and other end users. “Now that Dangote will supply bulk buyers, the concern about losing jobs has been resolved,” he added. NOGASA members have already begun registering on Dangote’s portal to become authorised bulk buyers under the new arrangement.
Similarly, Yusuf Othman, President of NARTO, confirmed ongoing consultations with Dangote’s management to address the scheme’s impact on tanker drivers. He noted that while meetings have been productive, further engagement will continue to ensure all stakeholders’ concerns are adequately addressed.
Dangote Industries Vice President for Oil and Gas, Devakumar Edwin, emphasised that the deployment of 4,000 CNG-powered trucks is intended to streamline fuel logistics and reduce distribution costs, not displace existing players. “The use of CNG-powered trucks will make transportation more environmentally friendly and reduce costs, ultimately making fuel more affordable for Nigerians,” he said.
The introduction of CNG-powered vehicles aligns with Nigeria’s broader energy transition goals, reducing reliance on conventional fuel while promoting cleaner alternatives. The refinery’s approach reflects a balance between expanding domestic refining capacity and maintaining a stable distribution network for the benefit of marketers, transporters, and end users.
Anthony Chiejina, spokesman for Dangote Group, confirmed that all clarifications regarding the distribution scheme had been communicated to bulk buyers and industry associations. He encouraged dealers to hold a press conference for any further statements.
The resolution marks a significant step in fostering collaboration between private sector refineries and existing distribution networks in Nigeria. By restoring fuel marketers’ roles while leveraging CNG-powered logistics for efficiency, Dangote Petroleum Refinery aims to achieve both increased supply capacity and equitable participation of industry stakeholders.
This development underscores the importance of stakeholder engagement in Nigeria’s growing oil and gas sector, ensuring that innovative distribution methods enhance affordability without disrupting livelihoods or existing market structures.