The Dangote Petroleum Refinery has reached an agreement with petroleum product marketers and tanker drivers to avert a looming showdown over its planned direct fuel distribution scheme, easing fears of job losses and supply chain collapse.
The truce followed a series of consultations between the Dangote Group, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), and the National Association of Road Transport Owners (NARTO).
The associations had warned that bypassing existing distribution channels and selling directly to end-users could disrupt nationwide supply, trigger scarcity, and render their multi-billion-naira investments in transport and depots redundant.
NOGASA National President, Bennett Korie, had earlier called on President Bola Tinubu to intervene, insisting that Dangote alone could not sustainably handle nationwide distribution.
However, following meetings with Dangote representatives, NOGASA National Publicity Secretary, Chinedu Ukadike, confirmed that the refinery had agreed to channel products through bulk buyers, primarily NOGASA members for onward delivery to end-users.
“Dangote heeded our plea by agreeing to sell to the bulk buyers, who are the suppliers. Based on that, we don’t have issues again. Before, we feared he would retail directly to end-users like hotels and telecom companies, which would have wiped out our business,” Ukadike said.
He added that members have begun registering on the Dangote portal to purchase products in bulk, noting that deliveries will be handled by the refinery’s fleet of 4,000 Compressed Natural Gas (CNG)-powered trucks. “Once you pay, they deliver to you, not to end-users,” he explained.
NARTO President, Yusuf Othman, confirmed that consultations with the Dangote Group were ongoing, adding that his association had already met with Aliko Dangote personally and would meet him again to discuss the scheme’s impact on tanker drivers.
Vice President, Oil and Gas, Dangote Industries Limited, Devakumar Edwin, said that the CNG-powered fleet, part of the rollout beginning Friday, August 15 is designed to cut logistics costs, enhance efficiency, and ensure the benefits of domestic refining translate to lower pump prices for Nigerians.
“The aim is to support logistics and make distribution more efficient, not to displace any existing players in the sector,” Edwin stressed, adding that the CNG trucks are also more environmentally friendly.
Dangote Group spokesman, Anthony Chiejina, declined a detailed comment when contacted, saying dealers should hold a press briefing.
