Dangote Gives Update Amid Delay in Fuel Distribution Plan With CNG Trucks
- The Dangote Refinery was expected to begin fuel distribution with Compressed Natural Gas-powered trucks this August
- There was a lot of excitement about the plan, which was expected to revolutionise the downstream fuel market
- The refinery’s target customers for the scheme included marketers, petrol dealers, manufacturers, telecom firms, aviation, and other large users
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Dangote Petroleum Refinery has experienced delays in the rollout of its fuel distribution plan using Compressed Natural Gas (CNG)-powered trucks.
Africa’s richest man, Aliko Dangote, had planned to begin nationwide trucking of petroleum products from the $20 billion Lekki-based refinery on August 15, 2025.
Source: Twitter
Dangote CNG truck fuel distribution plan delayed
Bloomberg, however, reports that shipments from China have disrupted the plans.
It was revealed that only about 600 of the 4,000 trucks ordered from China are expected to be in Nigeria by next week.
Vice-President Devakumar Edwin was quoted as saying that the delays were caused by “inadequate availability of ships from China” to transport the trucks.
About 200 units arrived in the first shipment, 250 in the second, while another 150 are due to arrive in Lagos next week. The company expects 60 more shiploads to follow within six weeks.
Speaking to Legit.ng on the delays, Anthony Chiejina, group head of corporate communications, Dangote Group, said:
"We are on course"
Dangote refinery fuel distribution plan
In a statement, Dangote Group noted that the refinery phase of the programme will continue over an extended timeframe.
The refinery is also investing in CNG stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers nationwide to ensure seamless product distribution.
Source: Getty Images
The statement noted:
"Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support.
"Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery.
"In addition, the refinery will offer a credit facility to those purchasing a minimum of 500,000 litres allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee."
Rewane explains the importance of Dangote's fuel distribution plan
Earlier, Legit.ng reported that Bismarck Rewane, CEO of Financial Derivatives Company, has highlighted that the company's latest initiative aimed at free distribution will lower production costs, reduce inflationary pressures, and promote economic growth.
Rewane said that Dangote is bypassing middlemen, who are seen as parasitic, by directly managing distribution and offering credit facilities to retailers.
Rewane, however, downplayed concerns over the refinery potentially dominating the market, pointing out that inefficiencies in the industry have been a long-standing issue.
Source: Legit.ng
