Apprehension as Dangote Refinery Rolls Out Nationwide Fuel Distribution with CNG Trucks

There is growing concern among Nigerians and energy sector stakeholders as Dangote Refinery begins nationwide fuel distribution today, Monday, September 15, 2025, deploying its Compressed Natural Gas (CNG) trucks.

Over the weekend, hundreds of trucks belonging to the refinery were sighted on Nigerian roads, moving out from its base on the Lekki–Epe Expressway in Lagos. The $20 billion refinery had earlier announced an investment of N720 billion to import 4,000 CNG-powered trucks, with about 1,000 already delivered.

According to Dangote Group, the initiative will help reduce fuel retail prices and is expected to save Nigeria an estimated N1.7 trillion annually in fuel distribution costs. On Thursday, the refinery released a new price template, pegging the ex-depot price at N820 per litre, with retail prices ranging between N841 and N851 per litre across states.

However, the launch of the new distribution system has triggered disruption in the downstream oil sector.

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which has been in conflict with Dangote Refinery over alleged anti-labour practices, dismissed the scheme as a “Greek gift.” Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticised the promise of free delivery as misleading. In contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) endorsed the initiative, urging members to key into the new system.

Concerns have also been raised about safety and dominance. The entry of thousands of Dangote trucks into Nigerian highways comes amid rising truck-related accidents. Recently, Ruth Otabor, sister of Big Brother Naija Season 7 winner, Phyna, lost her life in Auchi after being hit by a Dangote truck. Over the weekend, another accident involving a Dangote truck and a Benue Links passenger bus left many injured on the Lagos–Kogi expressway.

Professor Wumi Iledare, an Emeritus Professor of Petroleum Economics, described the CNG truck rollout as bold and potentially cost-saving but warned of the risks of unchecked dominance. He argued that while vertical integration is common globally, the concentration of refining and transport power in one company could stifle competition if regulators fail to act.

He further noted that safety concerns and potential nationwide gridlock add to public apprehension. According to him, the way forward lies in balancing innovation with stronger regulation, stricter safety enforcement, and fair competition safeguards to ensure the benefits of the initiative outweigh its risks.