Shipping Delays Stall Dangote’s Fuel Distribution Plan as Only 450 CNG Trucks Arrive

The ambitious fuel distribution initiative by Dangote Petroleum Refinery has hit a logistical snag, as only a fraction of the 4,000 Compressed Natural Gas (CNG)-powered trucks ordered from China have arrived in Nigeria. The refinery, located in Lekki, Lagos, had planned to begin direct fuel delivery across the country on August 15, 2025, but shipping constraints have forced a delay.

Out of the 4,000 trucks expected, just 450 units have landed so far, with an additional 150 trucks scheduled to arrive next week. A senior executive at Dangote Group, speaking anonymously, confirmed that the delay was due to a shortage of available vessels to transport the trucks from China. “We received 200 trucks in the first shipment and 250 in the second. Another 150 are expected next week,” the official said.

The company had projected the arrival of 60 shiploads of trucks over a six-week period to support its nationwide fuel distribution strategy. However, with only about 11% of the fleet currently available, the rollout of the scheme will likely be adjusted.

In June, Dangote Industries Limited announced a ₦720 billion investment to deploy the CNG-powered fleet, aimed at reducing fuel distribution costs and enhancing energy efficiency. The initiative is expected to save Nigerians over ₦1.7 trillion annually in logistics expenses and benefit more than 42 million micro, small, and medium enterprises (MSMEs) by lowering operational costs.

According to Anthony Chiejina, Group Chief of Branding and Communication at Dangote, the programme is designed to address long-standing logistics bottlenecks, promote sustainability, and stimulate economic growth. “This initiative will reduce production costs, ease inflationary pressures, and create over 15,000 direct jobs across the logistics chain,” he said.

The plan also includes revitalizing dormant filling stations and curbing cross-border smuggling of petroleum products. Initially, Dangote had proposed selling fuel directly to end users, including telecom companies and filling stations, bypassing traditional distribution networks.

This proposal sparked concern among stakeholders, particularly members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the National Association of Road Transport Owners (NARTO), who feared job losses and disruption of existing supply chains. NOGASA President Bennett Korie urged the refinery to reconsider and consult with industry players before launching the scheme.

Following stakeholder engagement, Dangote agreed to modify its approach. According to Chinedu Ukadike, NOGASA’s National Publicity Secretary, the refinery will now supply fuel to bulk buyers rather than selling directly to end users. “Dangote has assured us that products will be distributed through existing channels. This agreement has resolved our concerns,” Ukadike said.

With the revised plan in place and more trucks expected to arrive in the coming weeks, Dangote’s fuel distribution strategy remains a transformative step for Nigeria’s energy sector—though its full impact may take longer to materialize due to ongoing shipping delays.