Early optimism that the Federal Government could swiftly resolve issues surrounding Dangote Refinery?s planned nationwide rollout of petroleum products with free logistics has dimmed, as the process appears to have hit a brick wall, it has been learnt.

The meeting, which was scheduled at the instance of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), had marketers and some top officials of the refinery in attendance.

Dangote Petroleum Refinery had earlier announced August 15, 2025, as its take-off date for its fuel distribution scheme to petrol station operators, manufacturers, telecommunications companies, the aviation sector, and other large-scale users, with free logistics support.

However, the scheme could not take off on the due date.

Dangote Petroleum Refinery, in an update on the scheme, said only 450 trucks out of the 4,000 CNG trucks had arrived due to logistics challenges in China.

But sources at the meeting, which also had the Police, DSS, and the Federal Competition and Consumer Protection Commission (FCCPC) in attendance, said the parley was deadlocked as resolutions could not be reached.

Confirming the meeting among the parties, the President of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN), Mr. Billy Gillis-Harry, said the meeting could not reach a compromise.

He explained that the association had earlier expressed concerns on the threat the scheme could bring to the downstream sector.

Some of the fears, according to Gillis-Harry, included investment and job losses.

He added that the introduction of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers by Dangote Refinery poses a significant threat to the livelihoods of thousands of truck drivers and owners.

?While CNG trucks may offer a lower cost of transporting petroleum products,? the association posited, ?this shift could lead to widespread job losses in the industry.?

He noted that all these concerns have not been addressed by Dangote, forcing a possible shift in the take-off date.

The PETROAN boss argued that inasmuch as the association is fully in support of Dangote Refinery to succeed, that must not be at the detriment of other businesses.

He said the fate of depot owners who have invested massively in the downstream sector is also threatened when products are now being directly delivered to fuel stations, among others.

He added that this model could lead to anti-competitive behaviour, hence the intervention of the FCCPC.

?However, the good thing is that we are talking. The meeting will reconvene at a later date when we believe that Dangote would now have answers to our concerns.?

Also speaking, the National PRO of IPMAN, Mr. Chukwudi Akadike, said not until answers are provided to the concerns of marketers and stakeholders, the scheme may not achieve its intention.

Akadike, who confirmed the recently held meeting of stakeholders, said the parley didn?t reach a truce.

He lamented that the concern of IPMAN was that the scheme could lead to a lopsided distribution model whereby Dangote partners are more favoured than others.

?Have you reasoned a situation whereby a larger chunk of petroleum products is supplied to the North? So what happens to those in the South?? he queried.

In June, the Dangote Refinery revealed that it was investing over N720bn to deploy 4,000 CNG-powered trucks across Nigeria for the nationwide distribution of petroleum products. The company said the initiative is projected to save Nigerians over N1.7tn annually in fuel distribution costs.

According to Dangote, the strategic programme is part of its broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria?s economic development. Lower fuel distribution costs will reduce production expenses, alleviate inflationary pressures, and stimulate overall economic growth.

The initiative is also expected to revitalise dormant filling stations, creating over 15,000 direct jobs across the logistics value chain, including positions for drivers, station managers, and attendants at the new CNG stations. (Daily Sun)

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