The launch of the Dangote Refinery’s direct fuel distribution scheme has unsettled Nigeria’s fuel transport industry, as bulk buyers and filling stations are abandoning middlemen suppliers in favour of Dangote’s free delivery service.
The President of the National Association of Road Transport Owners (NARTO), Yusuf Othman, raised the concern during a live programme on TVC News, warning that the new model could render thousands of truck owners redundant.
Othman explained that NARTO members collectively operate about 30,000 trucks, many of which were acquired through bank loans tied to fuel distribution contracts. With buyers now bypassing these agreements for Dangote’s free delivery, the existing contracts are at risk.
“We have our members who have signed agreements with so many companies. Some are even informal agreements, but we have formal agreements signed. We used those agreements to secure bank facilities to buy trucks and serve those companies. But now, those agreements are at stake because a big brother is coming to supply directly,” he said.
The NARTO president condemned the practice, arguing that while Dangote may have the capacity to deliver fuel directly to filling stations, telecom companies, and other bulk users, transporters cannot afford to offer such services free of charge.
Industry observers say the situation highlights the potential market disruption caused by the refinery’s entry into distribution, with stakeholders calling for dialogue to ensure a balance between efficiency and the survival of existing operators.
