The planned fuel distribution by the Dangote Petroleum Refinery with 4,000 Compressed Natural Gas-powered trucks could not start on Friday due to logistics challenges in China, The PUNCH reports.
The $20bn Lekki-based firm had earlier announced plans to kick off the direct fuel distribution exercise with the 4,000 CNG-powered trucks. The trucks were ordered from China to be delivered in Lagos for Dangote’s direct fuel distribution.
However, the plan could not materialise because the company was only able to receive 450 trucks. It was learnt that 150 others would be delivered next week, making a total of 600 trucks.
A very senior executive officer of the Dangote Group confirmed this development in an exclusive interview with our correspondent over the weekend. The official, who did not want to be mentioned due to a lack of authorisation to speak on the matter, told our correspondent that there were not enough ships to transport the trucks to Nigeria from China.
This challenge has stalled the shipping of the trucks to Nigeria before August 15, 2025, when the scheme was supposed to commence. Asked to explain why the fuel distribution scheme did not start on Friday, the source replied, “There are not enough ships coming from China to handle 4,000 trucks and 4,000 tankers.”
He gave further insights, saying the Dangote Group received 200 trucks in the first shipment and 250 in the second batch, while another 150 would be received next week. “200 arrived in the first ship. Another 250 have been offloaded now. We are expecting 150 on the vessel next week,” the source stated.
With about 11 per cent of the needed trucks available, the Dangote refinery’s plan to supply fuel directly to its customers from August 15 may witness some adjustments. The company said last week that it was expecting 60 shiploads of the trucks in the next six weeks.
“Over the next six weeks, the refinery expects at least 60 shiploads of these trucks to arrive in the country,” Group Chief of Branding and Communication, Dangote Industries Limited, Mr Anthony Chiejina, said in a statement.
In June, the Dangote refinery revealed that it was investing over N720bn to deploy 4,000 CNG-powered trucks across Nigeria for the nationwide distribution of petroleum products. The company said the initiative is projected to save Nigerians over N1.7tn annually in fuel distribution costs.
The privately owned refinery plans to absorb more than N1.07tn every year in fuel logistics expenses. The scheme is expected to significantly benefit over 42 million micro, small, and medium enterprises by lowering energy costs and improving profitability.
“This strategic programme is part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development. Lower fuel distribution costs will reduce production expenses, alleviate inflationary pressures, and stimulate overall economic growth.
“The initiative is also expected to revitalise dormant filling stations, creating over 15,000 direct jobs across the logistics value chain, including positions for drivers, station managers, and attendants at the new CNG stations,” Chiejina said.
Moreover, the refinery said that the programme would help curb cross-border smuggling of petroleum products while supporting a more efficient and environmentally friendly distribution system.
When the scheme was announced in March, the Dangote refinery planned to deliver fuel directly to filling stations, telecommunication companies and other bulk users, eliminating the roles of middlemen.
This sent shivers down the spines of tanker drivers and members of the Natural Oil and Gas Suppliers Association of Nigeria over fear that they might lose their livelihoods.
In reaction, the Natural Oil and Gas Suppliers Association of Nigeria warned that the refinery’s plan to bypass existing distribution channels and supply refined petroleum products directly to end-users would lead to a nationwide disruption, long-term product scarcity, and the collapse of existing supply networks.
The oil and gas suppliers called on the refinery to halt its plan and seek further dialogue before commencing the distribution of products to end users, urging it to learn from what happened to non-functional refineries under the management of the Nigerian National Petroleum Company Limited.
They also called on President Bola Tinubu to intervene in the issue, stressing that Dangote alone cannot handle nationwide distribution of products sustainably. The NOGASA National President, Bennett Korie, made the call during the association’s Annual General Meeting held in Abuja recently.
But The PUNCH later gathered that Dangote and the stakeholders have met to iron out their concerns. The National Publicity Secretary of NOGASA, Chinedu Ukadike, and the National President of the National Association of Road Transport Owners, Yusuf Othman, confirmed this to our correspondent in an interview.
According to the NOGASA spokesman, both Dangote and the association have agreed to work together through the existing distribution channels. He said the fear of job losses had been allayed, as the refinery assured them that fuel would be sold to bulk buyers for onward distribution to end users.
Ukadike told our correspondent that Dangote would not sell petroleum products directly to end users; he would sell to NOGASA members as bulk buyers. “I want to say that Dangote heeded our plea by agreeing with us that they will be sending these products to the bulk buyers, who are the suppliers. Based on that, we won’t have issues again.
“What we were saying ab initio was the issue of the supply chain in which we have invested so much. We requested that the supply chain be given to us in distribution, which I think Dangote has also complied with, since he is not going to supply directly to end users. We want to appreciate him for that,” he said.
