ABUJA — Nigeria’s $20 billion Dangote Refinery has remained silent nearly two weeks after failing to meet its self-imposed August 15, 2025, deadline to begin nationwide distribution of premium motor spirit (PMS) and automotive gas oil (AGO) through its compressed natural gas (CNG) truck scheme.
The 650,000-barrel-per-day facility, located in Ibeju-Lekki, had earlier unveiled an ambitious plan to deploy 4,000 CNG trucks for nationwide distribution — a project valued at N720 billion annually. The initiative, according to the company, would save Nigerians about N45 per litre in logistics costs, translating into N1.2 trillion in yearly “free distribution savings.”
However, despite earlier assurances, the refinery has yet to roll out the scheme, sparking speculation and mixed reactions among stakeholders in Nigeria’s downstream sector.
Confusion Over CNG Trucks Delivery
While Dangote had described the initiative as a “major shake-up” in the oil sector, the company has not clarified reasons behind the delay. This comes despite reports that the refinery has already taken delivery of at least 1,000 CNG trucks, up from an earlier 450.
“It’s going to be one of the biggest changes in the country — not a price cut, but a full-scale overhaul,” Dangote had said in June after President Bola Tinubu toured the plant.
Stakeholders React
Reactions from marketers have been sharply divided.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), praised the initiative but warned it may not lead to cheaper fuel prices.
“Dangote had said that on August 15 he would roll out petrol and diesel without transportation burden. From Petroan’s perspective, we welcome the initiative, but we counsel against the possible consequences,” he told DAILY POST.
He likened the situation to Dangote’s cement operations, where prices have risen despite similar distribution reforms. Gillis-Harry further cautioned that monopolistic tendencies could emerge if Dangote dominates every segment of the value chain.
On the other hand, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed optimism.
“We are still waiting for Dangote to kick off the scheme. I believe as soon as the company addresses its problems, they will start loading. According to Dangote, fuel prices will likely drop because he pledged to remove the transportation cost,” Maigandi said.
Official Silence
As of press time, Dangote Group spokesperson Anthony Chiejina had not responded to inquiries on the delay.
Meanwhile, retail fuel prices in Abuja hovered between N885 and N910 per litre on Monday, even as global crude prices traded at $68.47 (Brent) and $64.47 (WTI) per barrel early Tuesday, according to Oilprice.com
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