Dangote Refinery has begun nationwide fuel distribution in Nigeria, deploying its Compressed Natural Gas (CNG) trucks across the country. Hundreds of vehicles are already on the roads, following the company’s announcement that it has invested N720 billion to import 4,000 CNG trucks, although only about 1,000 have been delivered so far. The refinery expects the initiative to lower retail fuel prices and save the nation roughly N1.7 trillion annually in distribution costs. A new fuel price template has been introduced, with an ex‑depot price of N820 per litre and retail prices varying by state from N841 to N851 per litre.
The rollout has generated mixed reactions among stakeholders. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has expressed skepticism, calling the scheme a “Greek gift” to Nigerians. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has questioned the feasibility of Dangote’s promise of free delivery nationwide. Conversely, the Independent Petroleum Marketers Association of Nigeria has supported the initiative, urging its members to register with the refinery.
Professor Wumi Iledare, a petroleum economics expert, notes that while the shift to CNG trucks could reduce costs and emissions, it also raises concerns about market dominance and the potential suppression of competition. Additionally, the growing presence of Dangote trucks on Nigerian roads has heightened safety worries, especially after recent accidents involving the company’s vehicles that resulted in fatalities and injuries. These incidents underscore the need for robust safety measures and regulatory oversight.
As Dangote Refinery expands its distribution network, its impact on Nigeria’s energy sector will be closely monitored. The initiative holds promise for lowering fuel prices and enhancing energy security, but it also highlights the importance of effective regulation and stringent safety standards to mitigate risks and avoid disruptions.
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