KEY POINTS
- Dangote’s CNG truck rollout faces shipping delays from China.
- Only 450 out of 4,000 trucks have arrived so far.
- NOGASA and Dangote reached an agreement on distribution channels.
The much-anticipated rollout of Dangote Petroleum Refinery’s 4,000 Compressed Natural Gas-powered trucks has hit a snag, with the company receiving just 450 units instead of the full fleet.
Logistics bottlenecks in China, where the trucks are manufactured, have slowed shipments to Nigeria, threatening the firm’s plan to begin direct fuel distribution from August 15.
A senior Dangote executive, who asked not to be named, confirmed the disruption, citing limited shipping capacity between China and Nigeria. The company had expected enough trucks to launch its N720 billion ($480 million) distribution scheme on schedule, but has so far received only about 11 per cent of the required fleet. Another 150 trucks are due next week, with 60 shiploads expected over the next six weeks.
Dangote’s CNG truck rollout may reshape distribution
The refinery, a $20 billion project located in Lekki, Lagos, announced in June that it was investing in the fleet to cut nationwide distribution costs. Dangote projects that the trucks will save Nigerians over N1.7 trillion annually, while absorbing N1.07 trillion in logistics expenses each year. The company said the programme will also create more than 15,000 jobs and revive dormant filling stations.
According to Punch, industry stakeholders had earlier raised concerns that Dangote’s direct-to-market model could sideline existing supply networks. The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) warned of potential scarcity and disruption if middlemen were cut out. But after a series of negotiations, Dangote and the association agreed to work together through bulk buyers rather than direct-to-consumer sales.
“This agreement preserves the supply chain and protects jobs,” said NOGASA spokesman Chinedu Ukadike. “Dangote has assured us he will not bypass distributors.”