Oil marketers in Nigeria have voiced concerns that the Dangote Refinery’s newly launched fleet of 4,000 CNG‑powered trucks may not be sufficient to ensure effective distribution of petroleum products across the country. Billy Gillis‑Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), warned that the investments of oil marketers in the downstream sector should not be discarded. While he welcomed Dangote’s trucks as a positive development, he stressed that they alone will not be enough to supply all regions. Gillis‑Harry emphasized that oil marketers are also investing in CNG trucks and should be included in the distribution process to guarantee seamless and effective supplies. He added that retail outlet owners, who represent the last link in the industry, must be able to receive products from every depot nationwide.
These concerns follow billionaire businessman Femi Otedola’s advice to 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. Otedola argued that the era of fuel imports and subsidy exploitation is fading, and DAPPMAN members should adapt to the new reality by focusing on owning and scaling last‑mile retail outlets rather than clinging to depots that are no longer necessary.
In response, Gillis‑Harry described Otedola’s advice as insensitive to businessmen who have heavily invested in the sector. He acknowledged that innovation and restructuring are necessary but argued that it is unrealistic to expect marketers to scrap their investments overnight. While noting that Dangote’s investment is timely and provides marketers with peace of mind, Gillis‑Harry said Otedola’s perspective remains open to debate.
The debate underscores the challenges facing Nigeria’s downstream oil sector as it transitions to a new era of local refining and distribution. Since the Dangote Refinery’s commissioning in May 2023, the sector is expected to undergo significant changes, and stakeholders are grappling with the implications. As the industry adapts to this new reality, the impact on petroleum product distribution and the role of oil marketers remain uncertain.
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