By Huldah Shado
The Dangote Petroleum Refinery has unveiled a major fuel distribution strategy that it says will help reduce inflation and create thousands of jobs across Nigeria.
According to the company, the plan involves direct distribution of Premium Motor Spirit (petrol), diesel, and other refined products to petrol station operators, manufacturers, telecom firms, the aviation industry, and other large-scale consumers.
Notably, the distribution will come with free logistics support; a move industry experts describe as potentially transformative.
A key component of the plan includes the deployment of 4,000 new Compressed Natural Gas (CNG)-powered tankers, aimed at solving longstanding distribution challenges in Nigeria’s fuel supply chain.
The initiative is also expected to limit the influence of intermediaries and promote environmental sustainability.
Dr. Abimbola Oyarinu, a university lecturer, believes the policy, if well-executed, could significantly weaken the control of middlemen who have historically dominated the downstream oil sector and, at times, disrupted national fuel supply.
Energy analyst Ibukun Phillips hailed the move as “revolutionary,” saying it could reshape Nigeria’s energy sector by improving access and affordability, particularly in underserved rural areas.
He added that the initiative is projected to create at least 8,000 jobs through the hiring of new tanker drivers.
Kelvin Emmanuel, co-founder of Dairy Hills, also praised the plan, especially Dangote’s decision to cover logistics costs.
He noted that Nigerians have yet to fully enjoy the benefits of domestic refining, as fuel supply remains inconsistent across much of the country.
Only Lagos, parts of the southwest, and Abuja currently experience relatively stable pump prices.
However, the Petroleum Products Retail Outlet Owners Association of Nigeria has expressed concerns, warning that Dangote’s direct-to-market approach could lead to the closure of filling stations and potential job losses among independent tanker operators.
Despite the pushback, Dangote Refinery maintains that its strategy will stabilize supply, lower prices, and boost employment, ultimately delivering long-term benefits to the Nigerian economy.