There is growing apprehension among Nigerians and stakeholders in the oil and gas sector as Dangote Refinery officially begins nationwide fuel distribution today, Monday, 15th September 2025, using its newly imported fleet of Compressed Natural Gas (CNG) trucks.
Over the weekend, hundreds of these trucks were already sighted departing the refinery’s location along the Lekki–Epe Expressway in Lagos State, sparking concerns over road safety, market dominance, and regulatory oversight.
The $20 billion refinery, which has positioned itself as a game-changer in Nigeria’s energy landscape, revealed it has committed N720 billion to import 4,000 CNG trucks, with around 1,000 already delivered and deployed across the country.
According to the Dangote Group, the initiative aims to slash fuel distribution costs and drive down pump prices. It projects that the CNG-powered logistics model could save Nigeria as much as N1.7 trillion annually in fuel distribution expenses. Last Thursday, the company unveiled its fuel pricing structure, pegging the ex-depot price at N820 per litre, with retail prices ranging from N841 to N851 depending on the state.
However, the launch has sparked controversy within the downstream sector. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), currently in dispute with Dangote over alleged anti-labour practices, described the initiative as a “Greek gift,” warning that it could undermine industry norms.
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Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticised the so-called “free delivery” model as misleading, suggesting it could destabilise existing distribution systems and force out smaller players.
In contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the initiative, urging its members to align with Dangote’s operations, which they believe could improve efficiency and reduce end-user costs.
Public unease has also been fuelled by recent accidents involving Dangote trucks. The tragic death of Ruth Otabor — sister to Big Brother Naija Season 7 winner, Phyna — in Auchi, Edo State, remains fresh in the minds of Nigerians. Over the weekend, another incident involving a Dangote truck and a Benue Links passenger bus along the Lagos–Kogi expressway left many injured.
With thousands of trucks set to traverse Nigeria’s already strained road network, fears over traffic congestion, road safety, and environmental impact are mounting.
Speaking, Professor Wumi Iledare, a renowned petroleum economist, described Dangote’s adoption of CNG trucks as “bold” and potentially beneficial for cost reduction and cleaner fuel use. However, he warned against unchecked dominance.
“Vertical integration is not the issue — it’s common worldwide,” he said. “The concern is dominance without checks. With Dangote already controlling refining, transport dominance risks stifling competition. Without a strong regulator, monopoly fears are real.”
Prof. Iledare also raised alarm over safety and regulatory readiness.
“Nigerians still mourn Ruth, Phyna’s sister. Add to that the gridlock risk from thousands of trucks. Innovation is welcome, but it must be matched with regulation, safety enforcement, and competitive fairness. Only then can convenience outweigh the disruptions,” he added.
