A new fuel distribution strategy by the Dangote Refinery is reshaping Nigeria’s downstream oil sector, as filling stations and bulk consumers now bypass traditional middlemen to source directly from the plant.
The shift follows the launch of Dangote’s direct supply scheme, which includes free fuel delivery to stations, telecom firms, and other large-scale buyers. The move has triggered concern among transporters and dealers who previously managed distribution.
Yusuf Othman, President of the National Association of Road Transport Owners (NARTO), voiced his members’ frustrations during a television appearance. He noted that many truck owners had invested heavily in fleets under binding contracts with marketers, but these deals are now threatened.
“Our members have taken bank loans and signed formal agreements with companies. With Dangote now supplying fuel at no delivery cost, those agreements are at risk,” he said, urging regulators and the Federal Government to intervene.
Despite pushback, the scheme has already begun rolling out. Over 1,000 compressed natural gas-powered trucks are delivering fuel across Lagos, Ogun, Oyo, Ondo, Osun, Ekiti, Edo, Delta, Rivers, Kwara, and Abuja. Fuel prices have also been reduced, with Lagos and other South-West states set at ₦841 per litre, while Abuja and parts of the South-South sell at ₦851.
Independent marketers, however, appear largely supportive of the initiative. Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that members are already receiving fuel shipments under the new plan.
“Trucks have started discharging products in the South-West, and our members are pleased. This will cut costs for both marketers and consumers,” Shettima said.
The development underscores Dangote’s growing influence in Nigeria’s energy market. While middlemen worry about losing business, many retailers and bulk users see the refinery’s strategy as a game-changer that could lower prices and stabilize supply nationwide.
