Just a day before the launch of Dangote Petroleum Refinery’s direct fuel distribution scheme, marketers and tanker drivers revealed they had met with the company to address fears that the new plan could put them out of business.
The refinery is set to begin direct fuel distribution on Friday, August 15, having already received some of the 4,000 Compressed Natural Gas (CNG)-powered trucks designated for the initiative.
The announcement of this distribution scheme caused alarm among tanker drivers and members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), who worried that bypassing existing distribution networks would threaten their livelihoods.
NOGASA warned that the refinery’s plan to supply refined petroleum products directly to end-users, circumventing current marketers, could disrupt the national fuel supply, cause long-term scarcity, and collapse existing distribution channels.
The association urged Dangote to pause the rollout and engage in further dialogue, advising that lessons be learned from the challenges faced by non-operational refineries under the Nigerian National Petroleum Company Limited.
They also called on President Bola Tinubu to intervene, stressing that Dangote alone cannot sustainably manage nationwide fuel distribution.
However, tanker drivers and suppliers have since disclosed to The PUNCH that they met with Dangote’s team to discuss collaboration.
Chinedu Ukadike, NOGASA’s National Publicity Secretary, and Yusuf Othman, President of the National Association of Road Transport Owners (NARTO), confirmed the meeting.
Ukadike explained that Dangote agreed to distribute fuel through bulk buyers, such as NOGASA members, rather than directly to end-users, easing fears of job losses.
“We initially feared Dangote would sell fuel directly to end-users like telecom masts and hotels, which would have jeopardized our investment and labor capacity. But Dangote assured us fuel would be sold to bulk buyers, who will then distribute it onward,” Ukadike said.
He added that some NOGASA members have already registered on Dangote’s portal to become bulk buyers and are preparing to receive fuel via the CNG-powered trucks.
Othman noted ongoing consultations with stakeholders on how the new scheme might impact tanker drivers. He confirmed a previous meeting with Dangote and plans for further discussions but declined to comment on the outcomes.
In a statement on Tuesday, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, emphasized that the deployment of 4,000 CNG-powered trucks aims to lower logistics costs and ensure Nigerians benefit from domestic refining through reduced fuel prices.
“The goal is to enhance logistics efficiency and reduce transportation costs, not to displace existing players,” Edwin said. He also highlighted the environmental benefits of CNG trucks and their role in making refined products more affordable.
When contacted for comment, Dangote Group spokesman Anthony Chiejina referred marketers to hold a press conference for further clarifications.
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