Dangote’s 4,000 CNG Trucks Arrive in Nigeria, Fueling Fears Among Oil Marketers as Direct Supply Begins

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In a bold move set to disrupt Nigeria’s downstream oil sector, the Dangote Group has begun the deployment of 4,000 Compressed Natural Gas (CNG) trucks to distribute fuel directly from its refinery to filling stations across the country.

The arrival of the trucks — manufactured by Dongfeng and recently offloaded in Lagos — marks a significant shift in Nigeria’s fuel logistics landscape. The company also revealed plans to establish 100 CNG refueling stations nationwide, further deepening its vertical integration and fuel accessibility strategy.

While many Nigerians are optimistic about reduced pump prices and improved fuel availability, oil marketers are sounding the alarm. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that the move could force over 2,000 independent fuel stations out of business and trigger widespread job losses across the petroleum distribution chain.

“This is a threat to thousands of small and independent marketers who have been the backbone of Nigeria’s fuel retail sector,” PETROAN stated, urging government regulators to intervene before smaller players are wiped out.

The Dangote Group, however, insists the initiative is designed to lower distribution costs, stabilise pump prices, and reduce Nigeria’s dependence on expensive diesel-powered logistics.

“This is about making fuel more accessible and affordable for Nigerians. It’s a necessary step for progress,” a company spokesperson said.

The CNG-powered trucks represent a cleaner, cost-effective alternative in a country grappling with high fuel costs and subsidy removal aftermath. Dangote’s move aligns with Nigeria’s broader shift towards cleaner energy alternatives and self-sufficiency in refining.

This development comes just days before Aliko Dangote’s official retirement as Chairman of Dangote Sugar Refinery Plc on June 16, 2025, after more than 20 years at the helm. Yet, the billionaire industrialist remains actively involved in other ventures, including Dangote Refinery and Dangote Fertiliser Ltd, Africa’s largest fertilizer plant and the second-largest globally, situated on a sprawling 500-hectare site in the Lekki Free Trade Zone.

Dangote, who recently remarked, “If I had invested this $25B in Microsoft, Tesla, Google & co., I’d be worth $125B today. But I chose to invest at home — to liberate my own people,” continues to position himself as a symbol of industrial patriotism in Africa.

As Nigeria watches the unfolding changes in its oil and gas sector, one thing is clear: Dangote is once again reshaping the nation’s economic landscape — and not everyone is comfortable with the pace.