Shipping Hitches Stall Dangote’s Fuel Distribution as Only 450 of 4,000 CNG Trucks Arrive

By Tamunoemi Briggs
August 20, 2025
Dangote CNG Trucks

The Dangote Petroleum Refinery’s plan to commence direct fuel distribution with 4,000 Compressed Natural Gas (CNG)-powered trucks has been delayed due to logistics bottlenecks in China, The PUNCH has learnt.

The $20bn Lekki-based facility had announced August 15, 2025, as the take-off date for its nationwide fuel delivery scheme. However, only 450 trucks out of the expected fleet had arrived Lagos as of last week. Another 150 are scheduled for delivery this week, bringing the total to 600 units—just about 11 per cent of the target.

A senior official of the Dangote Group, who spoke on condition of anonymity, disclosed that the delay stemmed from insufficient shipping vessels to transport the trucks from China.

“Two hundred came in the first shipment, 250 in the second, and 150 are expected in the next batch. There simply aren’t enough ships to move 4,000 trucks and 4,000 tankers at once,” the official explained.

Despite the setback, the refinery insists that 60 shiploads of trucks will land in Nigeria within the next six weeks. In June, Dangote Industries had revealed a ₦720bn investment in the CNG truck initiative, projected to save the economy over ₦1.7tn annually in petroleum distribution costs while cutting logistics expenses for the company by over ₦1tn yearly.

According to the company, the project is designed to ease inflationary pressures, stimulate economic growth, create over 15,000 jobs, and support more than 42 million small businesses nationwide. It also aims to curb cross-border smuggling and revitalise dormant filling stations through improved supply efficiency.

Initially, the refinery’s plan to distribute fuel directly to filling stations and large-scale users triggered resistance from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), which feared that bypassing existing supply networks would displace tanker drivers and disrupt the market.

The association warned of potential scarcity and urged President Bola Tinubu to intervene. But following negotiations, both sides reached an understanding.

NOGASA’s National Publicity Secretary, Chinedu Ukadike, confirmed that Dangote had agreed to channel products through bulk buyers instead of direct sales to end-users.

“What we were saying from the start was that the supply chain we built over the years should not be sidelined. Dangote has assured us the products will be supplied to us as bulk buyers, and not directly to filling stations or end-users. Based on that, we no longer have issues,” Ukadike said.

The adjustment clears the way for cooperation between Dangote and existing distributors, though the success of the initiative now hinges on how quickly the delayed trucks can be delivered.

The Beacon NG Newspaper