Hope Rises As Dangote Silent On Launch Of Free Petrol Distribution Initiative
By Sunday Etuka, Abuja
There is dead silence in the Petroleum Downstream sector of the Nigerian oil and gas industry, since the Dangote Refinery missed the timeline set for the launch of the free petroleum products distribution across the country, raising hope among petrol marketers.
The Refinery had set August 15, 2025, for free distribution of Premium Motor Spirit (Petrol) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users in Nigeria.
The initiative, according to the Refinery, aims to transform the fuel distribution landscape within Nigeria by reducing logistics costs and enhancing supply efficiency for customers.
The programme which is expected to curb cross-border smuggling of petroleum products, would also revitalise dormant filling stations, creating over 15,000 direct jobs across the logistics value chain, including positions for drivers, station managers, and attendants at the new CNG stations.
The refinery said it would offer a credit facility to those purchasing a minimum of 500,000 litres—allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee.
To ensure smooth take-off of the scheme, the Refinery had procured 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers, valued at N720 billion, as well as the plan to establish nationwide CNG ‘mother and daughter’ stations, among other infrastructure.
Despite this level of preparation, the Refinery is yet to kickstart the scheme, one week after the date set for the takeoff of the initiative. And all the calls and text messages sent to the Dangote Group’s Spokesperson, Anthony Chiejina, to ascertain the reasons for the delay, were not answered.
Meanwhile, the spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, told TheFact Daily on Friday, that the Refinery has not contacted the marketers on the planned takeoff of the scheme.
He said for the fact that the refinery has not contacted the marketers, nor commence the scheme shows that the refinery is yet to put its house in order to kickstart the programme.
Recall that the Natural Oil and Gas Suppliers Association (NOGASA), had kicked against the scheme, and had called on President Bola Tinubu to intervene so that the refinery plays by the rules.
NOGASA National President, Benneth Korie, who made the call during the association’s meeting in Abuja, noted that NOSAGA would like to work with the Refinery to ensure that the business survives for the mutual benefit of all involved.
He said NOGASA, as an umbrella organization for all categories of oil and gas suppliers in the downstream sector, must be deliberate to protect the business for the health and unity of the nation.
While elaborating on the potential consequences, Korie highlighted that many NOGASA members and their employees could lose their jobs.
“It will remove jobs from a lot of them and some of our staff will be redundant, some of our trucks will be redundant,” Korie warned.
Corroborating Korie, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said Nigerians should not rejoice yet over the announcement by the Dangote Refinery to distribute petroleum products across the country, as there is always payback time.
“We don’t need to pretend that we don’t know what’s going to happen. Because many of us are clapping hands that one company wants to refine, one company wants to stock, and one company wants to do the logistics of distribution, and one company wants to fix prices. So that one company is going to be both a businessman and a regulator. And so many Nigerians don’t seem to understand the dynamics of the difficulty,” he said.
Recalling what happened in the Cement industry, he said: “Because I want to draw your attention to the fact that we also have similar situations in our cement industry, where you are seeing the same trucks supplying cement.
“So, I’m sure you have seen in all your homes and villages and cities, those small, small container shops that are for cement. So, where the cement is not produced from the factory, and also distributed to those very critical distribution centers, have you bought cement for N115 again? From N115, we are buying now for 10,000 plus,” he said.
The PETROAN boss argued that with a production capacity of 650,000 barrels per day, which has now been upped to 700,000 barrels, the Dangote Refinery should be competing with global refineries, and not to operate as a distributor in the downstream, adding that NOGASA, NATO, PTT could effectively do the job of distribution of the products.
