Dangote’s 4,000 CNG Trucks Spark Fears Among Tanker Drivers as Fuel Distribution Deal Gains Momentum

Dangote trucks. Photo: Tribune

Firstsitenews-With less than a month to the official launch of Dangote Refinery and Petrochemical Limited’s ambitious fuel distribution initiative, tension is rising in Nigeria’s downstream oil sector. The planned deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks for direct fuel delivery has already attracted a surge of interest from oil marketers and sparked anxiety among tanker drivers who fear widespread job losses.

According to reports from Sunday PUNCH, the Dangote Refinery is on track to commence direct distribution of Premium Motor Spirit (PMS), diesel, and other petroleum products to marketers and key industries  including telecoms, manufacturing, and aviation  starting August 15, 2025.

As of Friday, at least 25 petroleum marketers had registered for the scheme, up from just three at the initial announcement. This growing number reflects mounting confidence in Dangote’s logistics and supply framework, which many stakeholders believe will reshape Nigeria’s fuel distribution landscape.

A top executive at the Dangote Group, who spoke on condition of anonymity, confirmed the surge in partnership interest. “We’ve now signed up 25 strategic partners for the direct distribution of petroleum products. The number has grown significantly since we started,” the official stated.

The refinery’s initiative is being positioned as a game-changer aimed at addressing Nigeria’s reliance on imported refined fuel while streamlining supply channels across the country. The use of 4,000 trucks, all powered by CNG, is also expected to cut logistics costs and potentially bring down fuel pump prices — particularly in regions like northern Nigeria where transportation challenges have historically driven up fuel costs.

However, not all industry players are welcoming the changes. Tanker drivers, who have traditionally formed the backbone of Nigeria’s petroleum logistics chain, are raising concerns about being sidelined. Many fear that the refinery’s in-house trucking strategy could render thousands of independent drivers and small-scale logistics operators jobless.

The development has also triggered broader discussions about competition, regulatory oversight, and Dangote’s growing influence within Nigeria’s downstream oil sector. While many applaud the move as a bold step toward energy security and efficiency, others warn it could lead to market monopolization if not properly regulated.

As the August rollout date draws near, all eyes remain on how this bold shift in fuel distribution will unfold  and what it will ultimately mean for Nigeria’s energy supply, its workforce, and the market dynamics that have defined the sector for decades.