Dangote Refinery has commenced a nationwide fuel distribution amid controversy.
NaijaOnPoint Nigeria reports that there is growing tension among Nigerians and energy stakeholders as Dangote Refinery kicked off nationwide fuel distribution on Monday, September 15, 2025, deploying its newly imported Compressed Natural Gas (CNG) trucks.
Over the weekend, hundreds of the refinery’s trucks rolled out from its $20 billion facility on the Lekki–Epe Expressway, Lagos. The company disclosed that it had invested ₦720 billion to import 4,000 CNG trucks, though only about 1,000 units have so far been delivered.
Dangote Group maintains that the initiative will ease fuel distribution, slash retail pump prices, and save Nigeria an estimated ₦1.7 trillion annually in logistics costs. On Thursday, the firm also released a new fuel price template, fixing ex-depot prices at ₦820 per litre and retail prices ranging between ₦841 and ₦851 per litre across states.
Stakeholders Divided
The launch, however, has stirred controversy across the downstream sector. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), already at loggerheads with the refinery over alleged anti-labour practices, described the move as a “Greek gift” aimed at crippling independent operators.
Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused Dangote of presenting its “free nationwide delivery” as a benevolent act, insisting the model was misleading.
In contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the development, urging its members to register with the refinery and take advantage of the scheme.
Safety Concerns Over Dangote Trucks
The rollout also coincides with renewed fears over the rising number of Dangote truck accidents nationwide. Recently, Ruth Otabor, sister to Big Brother Naija Season 7 winner Phyna, died after being crushed by a Dangote truck in Auchi. Over the weekend, several passengers sustained injuries when another Dangote truck collided with a Benue Links bus along the Lagos–Kogi Expressway.
Expert Opinion: Convenience vs. Monopoly Risks
Professor Emeritus of Petroleum Economics, Wumi Iledare, described the refinery’s foray into CNG trucking as a “bold and innovative step” with potential to reduce costs, cut emissions, and expand gas adoption. However, he warned of the dangers of unchecked dominance.
“With Dangote already controlling refining, adding transport dominance risks stifling competition,” Iledare told DAILY POST. “Without a strong regulator, monopoly fears are real. Safety concerns are equally critical—Nigerians are still mourning lives lost to Dangote trucks, and nationwide gridlock is inevitable if regulation lags.”
He concluded that while innovation should be encouraged, the government must strengthen regulation, enforce safety, and protect fair competition to balance the refinery’s convenience with broader national interests.