FG, Marketers' Deadlock Stalls Dangote Refinery’s Fuel Distribution Plan
- Talks between the Nigerian government and marketers halted the Dangote nationwide fuel distribution plan
- The discussion, which was called at the instance of the Nigerian Midstream and Downstream Regulatory Authority, was to discuss the fallout of the plan
- The Dangote Refinery reportedly received 1,000 out of the expected 4,000 CNG-powered trucks
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Hopes for a smooth nationwide fuel distribution rollout by Dangote Refinery have stalled after talks between the Federal Government and petroleum marketers ended in deadlock.
The meeting, convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was meant to address concerns around the scheme.
Source: Getty Images
Delayed take-off despite truck arrival
Though Dangote has received 1,000 of its planned 4,000 CNG-powered trucks, disagreements with marketers continue to delay the refinery’s take-off.
Despite the high-level engagement, no resolution was reached, leaving the refinery’s planned rollout in limbo.
Dangote Petroleum Refinery had earlier announced August 15, 2025, as the kick-off date for its direct distribution of petroleum products to petrol stations, manufacturers, telecom operators, aviation, and other large-scale consumers.
The scheme included free logistics support as an incentive.
However, the initiative failed to take off as scheduled. The refinery revealed that only 450 out of its planned 4,000 Compressed Natural Gas (CNG)-powered trucks had arrived due to logistics delays in China.
More shipments have since come in, bringing the figure closer to 1,000 trucks, but the delay has created additional tensions within the downstream sector.
Marketers raise concerns
The President of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, confirmed that discussions with Dangote remained inconclusive.
He warned that the deployment of 4,000 CNG trucks posed a major threat to truck drivers and depot owners who have invested heavily in the downstream industry.
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“While CNG trucks may lower costs of fuel transportation, this sudden shift risks massive job losses across the value chain,” Gillis-Harry said. He added that depot owners and logistics operators could also lose out as Dangote pushes to deliver fuel directly to filling stations.
Similarly, Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesman, Chukwudi Akadike, expressed fears that the new model could create unfair competition.
He questioned whether the distribution would favour certain regions over others, potentially deepening regional imbalances in fuel supply.
Fears of anti-competition
Stakeholders urged the FCCPC to scrutinise the model, warning that bypassing existing depot structures could distort the market. Both PETROAN and IPMAN stressed that while they welcome Dangote’s investment, the scheme should not destabilise businesses that already employ thousands across the country.
Akadike cautioned: “Until concerns of marketers and stakeholders are addressed, the scheme may not achieve its purpose.”
Dangote defends distribution plan
Dangote Industries maintains that the project is strategic, projecting savings of over ₦1.7 trillion annually in distribution costs while promoting energy efficiency and sustainability.
The refinery also claims the rollout could create 15,000 direct jobs across logistics, station management, and CNG fueling operations, while revitalising dormant filling stations nationwide.
Despite its promises, the refinery must now convince sceptical marketers and regulators that its plan will expand opportunities rather than shrink them.
Source: Getty Images
Another round of stakeholder talks is expected before a new take-off date is confirmed.
Dangote Refinery, two other depot owners hike petrol price
Legit.ng earlier reported that three operators, including Dangote Refinery, Aiteo and AA Rano, have adjusted their petrol depot prices to N823 per litre, up from N821, following the rise in crude oil prices.
International benchmarks edged to $67 per barrel from $65 in the global crude market over the weekend.
The three operators had previously sold petrol at N821 per litre. Findings showed that on Sunday, August 24, 2025, the domestic petroleum market continued to respond to global changes, driven by competition in the Nigerian downstream petroleum sector.
Source: Legit.ng
