Dangote Refinery to Begin Direct Fuel Supply, Putting Local Traders on Alert
Starting August 2025, Dangote Oil Refinery, Africa’s largest with 650,000 bpd capacity, will begin direct distribution of gasoline and diesel to retail stations, manufacturers, telecom firms, and other major consumers—ending reliance on traditional middlemen and import-based suppliers. 1. Logistics Overhaul Dangote has ordered 4,000 CNG-powered tanker trucks—more than doubling Nigeria’s current fuel logistics fleet. Plans include building over 100 CNG refueling stations nationwide to support the new fleet. 2. Credit Facility Boost Dangote will provide a short-term credit facility for bulk buyers: purchase 500,000 L and access another 500,000 L on credit for two weeks, backed by a bank guarantee—designed to ease cash-flow burdens and streamline bulk procurement. 3. Disruption vs. Opportunity Local fuel traders—represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN, with ~6,700 members)—warn the move could undermine their livelihoods: “In one fell swoop, he's trying to wipe […]