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Marketers to engage Dangote on direct fuel distribution strategy

The Major Energies Marketers Association of Nigeria (MEMAN) has announced plans to engage with Dangote Petroleum Refinery to better understand its proposed direct-to-station fuel distribution model. Speaking during a webinar on Thursday,…

The Major Energies Marketers Association of Nigeria (MEMAN) has announced plans to engage with Dangote Petroleum Refinery to better understand its proposed direct-to-station fuel distribution model.

Speaking during a webinar on Thursday, MEMAN Executive Secretary Clement Isong highlighted the need for thorough consultations with the refinery, regulatory bodies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other stakeholders before forming an official stance.

“We’re closely observing market developments and gathering relevant information,” Isong said. “Without clarity on critical elements like a potential equalisation mechanism or uniform pricing, it would be premature to comment definitively.”

Isong stressed that MEMAN’s position would be guided by the need to safeguard both market stability and consumer interests.

He also welcomed Dangote’s use of Compressed Natural Gas (CNG)-powered trucks for distribution, calling it a bold move aligned with Nigeria’s energy transition agenda. However, he noted the country’s current infrastructure is still inadequate for large-scale CNG adoption.

“CNG aligns with government policy, but the ecosystem is still developing. Those who can leverage it early will be ahead,” Isong remarked.

On concerns about market dominance, he reaffirmed the importance of regulatory oversight to maintain a level playing field while encouraging innovation.

“We support deregulation and fair competition. CNG-based transport is a welcome innovation, and we urge our members to explore similar paths,” he added.

Dangote Refinery recently announced it will begin direct nationwide fuel distribution on August 15 using a fleet of 4,000 new CNG-powered trucks.

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Published June 20, 2025
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