By DAYO ADESULU
The planned nationwide fuel distribution by the Dangote Petroleum Refinery using 4,000 Compressed Natural Gas (CNG)-powered trucks failed to commence on Friday due to logistics challenges in China, The PUNCH has learnt.
The $20bn Lekki-based refinery had announced that it would begin direct fuel distribution to filling stations and bulk buyers on August 15, 2025, using the newly procured CNG trucks. However, only 450 trucks have arrived in Lagos so far. Another 150 trucks are expected next week, bringing the total to 600 — just 11 per cent of the target.
Shipping Bottlenecks from China
A senior Dangote Group executive confirmed that the delay was due to insufficient shipping capacity from China.
“There are not enough ships coming from China to handle 4,000 trucks and 4,000 tankers,” the official explained.
He noted that 200 trucks arrived in the first batch, followed by 250 in the second, while another 150 are expected next week.
The refinery had projected that at least 60 shiploads of trucks would arrive in Nigeria over six weeks.
N720bn Logistics Investment to Cut Fuel Costs
In June, the Dangote refinery announced that it was investing N720bn in the deployment of the 4,000 CNG-powered trucks. The project aims to save Nigerians over N1.7tn annually in fuel distribution costs and cut the refinery’s logistics expenses by N1.07tn each year.
Beyond cost savings, the initiative is designed to:
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Revitalize dormant filling stations
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Create over 15,000 direct jobs across the supply chain
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Support small businesses by reducing energy costs
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Enhance environmental sustainability by cutting emissions
Initial Resistance from Oil Suppliers
When the scheme was first unveiled in March, the refinery had planned to distribute fuel directly to end users, bypassing traditional suppliers. This move drew strong resistance from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the National Association of Road Transport Owners (NARTO), who warned it could lead to job losses, distribution network collapse, and product scarcity.
NOGASA President Bennett Korie urged President Bola Tinubu to intervene, insisting Dangote should integrate into — not dismantle — the existing supply chain.
Agreement Reached with Stakeholders
Following negotiations, Dangote and the associations have reached a compromise. The refinery has now agreed to sell fuel to bulk buyers, such as NOGASA members, who will handle onward distribution to filling stations and end users.
NOGASA’s National Publicity Secretary, Chinedu Ukadike, confirmed the development:
“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.”
He added that the fear of job losses had been allayed, as the supply chain will remain intact.
What This Means for Nigerians
While the fuel distribution scheme may face short-term delays due to shipping challenges, the eventual deployment of all 4,000 trucks is expected to:
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Ease fuel shortages
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Cut transport and energy costs
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Stabilize pump prices
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Improve security by curbing smuggling
For now, Nigerians may have to wait a few more weeks before the full benefits of the programme are realized.
