Nigeria’s Dangote Refinery has remained silent over its failure to meet the self-imposed August 15, 2025, deadline to begin nationwide distribution of premium motor spirit (PMS) and automotive gas oil. The refinery had announced an ambitious plan to transform fuel supply across the country through deployment of 4,000 compressed natural gas (CNG) trucks.
The Lekki-based refinery had promised that the initiative, backed by a massive N720 billion investment, would cut logistics costs by N45 per litre and save Nigerians over N1.2 trillion annually in distribution expenses. This fuel distribution scheme was described by Aliko Dangote, the refinery president, as a major overhaul of Nigeria's downstream oil sector, aiming to eliminate fuel supply bottlenecks and reduce prices.
However, nearly two weeks after the scheduled launch, the refinery has yet to officially comment on the delay or provide a new timeline. While reports indicate some delivery of CNG trucks estimated to be around 1,000 units out of the planned 4,000 there remains uncertainty on when full-scale distribution will commence.
Industry stakeholders are divided on the potential impact of the scheme. The National Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed cautious approval but warned against possible monopolistic tendencies that could harm smaller operators and lead to job losses. PETROAN’s president, Billy Gillis Harry, also raised skepticism about whether the initiative will actually drive down fuel prices, citing recent rising prices in Dangote’s cement sector despite similar distribution tactics.
On the other hand, the Independent Petroleum Marketers Association of Nigeria (IPMAN), led by Abubakar Maigandi, remains optimistic. They believe the removal of transport logistics costs through Dangote’s direct fuel delivery will reduce fuel prices once the scheme is fully operational.
A spokesperson for Dangote Group, Anthony Chijiena, has not responded to inquiries regarding the missed deadline. Meanwhile, fuel prices at retail outlets in Abuja remain stable between N885 and N910 per litre, as global crude oil prices hold steady.
The refinery’s delay comes amid ongoing tensions in the Nigerian fuel supply chain, including tanker driver protests over government-imposed transport fees in Lagos, highlighting the challenges facing any large-scale overhaul of fuel logistics in the country.