Dangote Refinery direct fuel supply has officially launched, shaking up Nigeria’s petroleum sector and sparking nationwide debate. The refinery, owned by Africa’s richest man Aliko Dangote, has begun delivering fuel directly to bulk buyers such as filling stations and telecom companies, bypassing traditional middlemen.
Dangote accused the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) of charging ₦50,000 per truck at his Lekki facility. He argues that these levies inflate consumer fuel prices, making direct-to-buyer distribution the more efficient and transparent option. According to him, cutting out intermediaries is essential to keeping fuel affordable and ensuring stable supply.
The move, however, has drawn backlash from transport unions and petroleum marketers, who claim it sidelines workers and businesses tied to the traditional distribution chain. Critics warn the strategy could disrupt livelihoods and reduce the bargaining power of unions, creating new tensions in the already volatile fuel industry.
Adding momentum to Dangote’s stance is billionaire Femi Otedola, founder of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA). Otedola praised the new model, encouraging depots to shift into retail operations or sell their assets rather than resist change. He described the shift as part of Nigeria’s larger journey toward energy self-sufficiency, noting that depots must adapt or risk becoming obsolete.
For consumers, the reform could mean lower pump prices and more reliable fuel access, provided the model succeeds. For traditional marketers and unions, however, it represents a disruptive force that could reshape Nigeria’s petroleum distribution network for good.
As the Dangote Refinery direct fuel supply strategy takes root, it’s clear the battle between old and new models will define the future of Nigeria’s energy sector.
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