Oil marketers in Nigeria have expressed concerns that Dangote Refinery’s newly launched fleet of 4,000 CNG-powered trucks may not be sufficient to ensure an effective distribution of petroleum products across the country. According to Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the investments of oil marketers in the downstream sector should not be discarded.

Gillis-Harry noted that while Dangote’s trucks are a welcome development, they will not be enough to supply products to all areas of the country. He emphasized that oil marketers are also investing in CNG trucks and should be included in the distribution process to ensure seamless and effective supplies. The PETROAN president stated that retail outlet owners, who are the last link in the industry, should be able to get products from all depots in the country.

The concerns of oil marketers come after billionaire businessman Femi Otedola advised members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to sell their properties, restructure, and reinvest in the Port Harcourt refinery to remain relevant in the sector. Otedola argued that the era of fuel imports and subsidy exploitation is fading away, and DAPPMAN members should adapt to the new reality. He suggested that they should focus on owning and scaling last-mile retail outlets rather than holding on to depots that are no longer necessary.

In response to Otedola’s comments, Gillis-Harry described the advice as insensitive to the plight of businessmen who have invested heavily in the sector. He argued that while innovation and restructuring are necessary, it is not feasible to expect marketers to scrap their investments overnight. Gillis-Harry noted that Dangote’s investment in the sector is timely and gives marketers peace of mind, but Otedola’s thoughts on the matter are open to debate.

The debate highlights the challenges facing Nigeria’s downstream oil sector as it transitions to a new era of local refining and distribution. With Dangote Refinery’s commissioning in May 2023, the sector is expected to undergo significant changes, and stakeholders are grappling with the implications of these changes. As the industry adapts to the new reality, it remains to be seen how the distribution of petroleum products will be affected and what role oil marketers will play in the process.