By IDNN Energy Desk
Bulk fuel buyers and filling stations are abandoning middlemen in favour of Dangote Refinery’s new direct distribution scheme, marking a major disruption in Nigeria’s downstream market.
The refinery has deployed over 1,000 CNG-powered trucks, offering free delivery of petrol to filling stations, telecom firms, and other bulk users.
National Association of Road Transport Owners (NARTO) President Yusuf Othman warned that the move jeopardises existing haulage contracts.
“If I sign an agreement with you for service by virtue of my 10 trucks, and somebody somewhere comes to do the same thing for you for free, it’s a very delicate situation,” he said.
A Radical Shift in Fuel Logistics
Traditionally, middlemen bought from depots or refineries and resold to bulk users, while transport owners invested heavily in fleets. Dangote’s free delivery model bypasses both layers, reducing costs for buyers but threatening livelihoods for truck owners.
Winners and Losers in the New Order
- Winners: Consumers and filling stations, who enjoy lower prices — with petrol now retailing at ₦841 in Lagos and ₦851 in Abuja.
- Losers: Middlemen and NARTO truckers, who face contract losses and bank repayment crises.
- Market Outlook: Analysts say the shake-up could redefine distribution economics and trigger regulatory battles with NMDPRA.
This is IDNN. Independent. Digital. Uncompromising.