Dangote Refinery is set to begin direct fuel distribution with 1,000 new CNG trucks.
The scheme launches in Lagos and nearby states before expanding nationwide as more trucks arrive.
The Dangote Petroleum Refinery is preparing to launch its long-awaited direct fuel distribution scheme, following the arrival of 1,000 Compressed Natural Gas (CNG) trucks in Nigeria.
According to company insiders, the initiative will begin in Lagos, Ogun, and neighboring South-West states, before gradually expanding nationwide once the remaining 3,000 trucks already paid for are shipped from China.
Initially, the refinery planned to kick off the scheme on August 15 with 4,000 CNG trucks. However, sources confirmed that shortages of shipping vessels in China stalled deliveries. One top executive explained that while 200 trucks came in the first shipment and 250 in the second, thousands more were still awaiting vessels.
“Moving 4,000 trucks at once has been a challenge because of limited shipping capacity. We now have 1,000 on ground, and the balance should be in Nigeria before the end of September,” the official explained.
Company representatives stressed that operations would not be delayed until all the trucks arrive. Distribution will commence with available vehicles in the South-West before expanding to other regions.
“We had to adjust our timeline, but we will not keep waiting. Distribution will start soon with what we have, and as more trucks arrive, other zones will be covered,” one senior official said.
A consultant working with the refinery added, “Our schedule shows that by the end of September, the remaining trucks will be in Nigeria. The plan is to reach Lagos and nearby states first, and then extend services nationwide.”
The company earlier announced an investment of more than ₦720 billion in the 4,000 CNG-powered trucks. It estimates that the program will cut national fuel distribution costs by over ₦1.7 trillion annually, while also absorbing more than ₦1 trillion in logistics expenses on its end.
According to Dangote Industries, the direct-supply model will reduce production costs for more than 42 million small and medium-sized enterprises, help tame inflation, and spur economic growth.
The company also expects the initiative to revive dormant filling stations, create about 15,000 jobs across the logistics chain, and improve fuel security by curbing cross-border smuggling.
“This is not just about efficiency; it’s about building a cleaner, cheaper, and more reliable fuel distribution system for Nigeria,” the company stated.
Meanwhile, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has expressed concerns that the direct-to-consumer model could sideline existing distributors. The group warned that bypassing traditional supply networks might trigger disruptions and scarcity, urging Dangote to engage in dialogue before fully rolling out the scheme.
