Dangote Refinery’s 4,000 CNG Trucks Spark Tanker Drivers’ Fears.
Dangote Petroleum Refinery has unveiled a transformative plan to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks starting 15 August 2025, aiming to revolutionise Nigeria’s fuel distribution system. Supported by a £720 billion investment, the initiative seeks to enhance fuel accessibility, reduce logistics costs, and promote cleaner energy, but it has ignited fears among tanker drivers over potential job losses and diminished business opportunities.
The programme will deliver Premium Motor Spirit (PMS) and diesel directly to petroleum marketers, petrol stations, manufacturers, telecommunications firms, aviation companies, and other bulk buyers. By offering free logistics, Dangote aims to eliminate supply chain bottlenecks, lower operational costs, and reduce pump prices, potentially saving Nigerians over £1.7 trillion annually, including £1.07 trillion in distribution costs.
To facilitate this network, the refinery is constructing over 100 CNG “mother and daughter” refuelling stations and deploying more than 100 CNG tankers to ensure delivery to remote areas. This infrastructure is expected to revive dormant petrol stations and create over 15,000 direct jobs, including roles for drivers, station managers, and attendants at CNG stations.
Industry stakeholders have largely welcomed the initiative. Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated, “Dangote’s intervention will ease the burden on marketers and consumers by streamlining fuel distribution.” Development economist Professor Ken Ife added that the programme could significantly lower PMS prices and drive economic growth through efficient logistics.
However, tanker drivers and depot owners are apprehensive about the direct distribution model bypassing traditional intermediaries. The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has scheduled an emergency meeting on 31 July in Abuja to address these concerns. Billy-Gillis Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), warned that the initiative could lead to market dominance, potentially increasing prices in the long term.
Bismarck Rewane, CEO of Financial Derivatives Company, countered these fears, stating, “Dangote’s model removes parasitic middlemen, ensuring uniform pricing and lower logistics costs through CNG trucks, which are 40% cheaper to operate than diesel alternatives.” The refinery’s CNG fleet, equipped with advanced safety features and GPS tracking, aims to reduce accidents and disruptions associated with diesel tankers.
Dangote has introduced a credit scheme for bulk buyers, offering an additional 500,000 litres on credit for purchases of at least 500,000 litres, repayable within two weeks with a bank guarantee. Registration, including Know Your Customer (KYC) verification, is open from 16 June to 15 August 2025.
The refinery acknowledged the federal government’s support through the Naira-for-Crude scheme, which has stabilised fuel supply amid global market volatility. “This initiative is a milestone in our commitment to affordable and sustainable fuel access for all Nigerians,” the refinery stated.
As the 15 August rollout approaches, Dangote’s plan promises to reshape Nigeria’s fuel supply chain, offering prospects of cost savings, enhanced safety, and economic growth, while sparking critical discussions about competition, job security, and long-term sustainability in the downstream sector.