Expert Predicts Impact of Dangote's Nationwide Fuel Distribution on Nigerians
- Dangote Refinery recently announced plans to commence nationwide distribution of its products to stations and retailers
- Stakeholders have had a field day dissecting the implications of this move on other key players in the downstream sector
- Meanwhile, an energy expert has explained that the consequences go beyond the sector and will affect the everyday Nigerian
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Dangote Petrochemical Refinery recently announced the start of a major nationwide delivery project that would revolutionise the downstream petroleum sector.
The refinery is set to start nationwide supplies of PMS and other petroleum products to marketers, gas dealers, manufacturers, aviation players, and companies nationwide.
About 4,000 Compressed Natural Gas (CNG) tankers have been prepared to guarantee a successful launch on the scheduled date, August 15, 2025.
Source: Getty Images
The refinery has taken it a step further by offering a credit facility to customers who purchase at least 500,000 litres.
It has also released an application link for marketers and businesses who want to join the network to register.
Marketers react to Dangote’s distribution plan
The move has spurred reactions from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The spokesperson, Mr. Joseph Obele, warned that the impact on the downstream industry could be massive.
Obele listed the loss of many jobs and the closure of small firms as some of the unintended consequences of the move, and warned the government to act speedily and prevent a monopoly from taking over the market.
Energy expert explains how average Nigerian will benefit
Responding to these concerns, Mr. Kelvin Ayebaefie Emmanuel, an energy expert and consultant, has said that there are many benefits for the average Nigerian.
He explained that the Dangote Refinery already employs about 30,000 people directly and directly, with over 90% of them being Nigerians.
Mr. Emmanuel addressed concerns about job losses, stating that Nigerians would instead gain more jobs from the initiative.
He said:
"The 4k CNG trucks will employ 4k drivers directly and another 4k people indirectly as mechanics, station attendants, engineers at CNG mother and daughter stations deployed along the corridor.”
With a target of 50,000 direct jobs and 100,000 indirect jobs, he noted that Nigerians are set to benefit from the initiative of the refinery.
Source: AFP
An X user, Michael @DawillteA, noted that 8,000 jobs would be created with the 4,000 trucks, as every truck requires the driver and at least one assistant (motor boy).
Expert commends Dangote's nationwide distribution plan
In related news, industry experts have commended the move by the Dangote Refinery as one that will help the government get proper data in the sector.
In an interview with Legit.ng, Kelvin Emmanuel, said it will help the federal government know the actual retail consumption in Nigeria and take policy decisions based on that.
He noted that the regulators have been unable to get uniform data for years due to mismatches between reported consumption and actual supply, and observed that a nationwide delivery network from the refinery could address this problem.
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Source: Legit.ng
