Over the weekend, hundreds of the refinery’s trucks were already sighted leaving the Lekki–Epe axis of Lagos State, marking the start of what Dangote Group described as a transformative step for the downstream sector.
The $20 billion refinery had earlier revealed that it committed about N720 billion to import 4,000 CNG trucks, though reports indicate that only around 1,000 units have so far been delivered. According to the company, the initiative is expected to ease retail fuel prices and could save Nigeria up to N1.7 trillion annually in distribution costs.
Last week, the firm also released a revised fuel pricing template, fixing the ex-depot price at N820 per litre, with retail pump prices across states ranging between N841 and N851 per litre.
Industry Reactions
The development has divided opinion in the oil and gas sector.
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), still locked in disputes with Dangote over labour issues, dismissed the new distribution scheme as a “Greek gift.” Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticised Dangote’s promise of free nationwide delivery, describing it as misleading.
On the other hand, the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed support, urging its members to key into the initiative and register with the refinery.
Safety Concerns
Beyond pricing and competition, safety has become another major talking point. The surge of Dangote trucks on Nigerian highways comes at a time when the company’s vehicles have been linked to a series of accidents.
Just recently, Ruth Otabor, sister of Big Brother Naija Season 7 winner, Phyna, tragically lost her life after being hit by a Dangote truck in Auchi. Over the weekend, another collision involving a Dangote truck and a Benue Links bus along the Lagos–Kogi highway left several passengers injured.
Experts Weigh In
Professor Wumi Iledare, Emeritus Professor of Petroleum Economics, described the refinery’s move into CNG distribution as bold, noting its potential to reduce costs, cut emissions, and deepen gas adoption in Nigeria.
However, he cautioned that Dangote’s growing dominance could create monopoly risks if not properly regulated.
“Vertical integration is not unusual globally,” he explained, “but with Dangote controlling refining and now transport, unchecked dominance could stifle competition. The absence of strong regulation only fuels monopoly fears. Safety is another pressing concern, especially given the rising rate of accidents involving these trucks. Without proper checks, Nigerians may face gridlock and further risks on major highways.”
According to him, the way forward lies in balancing innovation with firm regulation, enforcing safety standards, ensuring fair competition, and strengthening oversight to protect the public interest.
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