The Dangote Refinery’s move to deliver fuel directly to filling stations, telecom firms, and other bulk consumers at no extra cost is causing unease within Nigeria’s transport sector. Major buyers are reportedly bypassing intermediary suppliers, opting instead for Dangote’s free delivery option, a shift that threatens existing contracts with members of the National Association of Road Transport Owners (NARTO).
NARTO President Yusuf Othman raised alarm over the development, stressing that many of their members had signed agreements — both formal and informal — with companies to provide trucking services. According to him, those agreements, some of which were used to secure bank loans for vehicle purchases, are now being undermined by Dangote’s direct supply system. “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,” Othman said.
He further appealed to the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene, noting that Section 212 of the Petroleum Industry Act (PIA) deems such practices illegal. With Dangote’s dominance in the downstream sector already reshaping fuel distribution, industry watchers warn the tension could escalate unless regulators step in to mediate between the refinery and road transport operators.
