Dangote Petroleum Refinery has announced on Sunday, June 15, 2025, that it will commence nationwide distribution of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel).
This will be starting August 15, 2025, aiming to transform Nigeria’s fuel supply chain.
The initiative, deploying 4,000 new Compressed Natural Gas (CNG)-powered tankers, offers free logistics to marketers, petrol stations, manufacturers, telecoms, aviation firms, and other bulk buyers.
Lagos E-Call Up Controversy
The announcement coincides with escalating tensions in Lagos, where tanker drivers and fuel marketers, under the National Association of Road Transport Owners (NARTO) and Independent Petroleum Marketers Association of Nigeria (IPMAN), have halted fuel loading from June 16, 2025, protesting a N12,500 E-Call Up fee imposed by the Lagos State Government for the Lekki-Epe Corridor.
The fee, intended to regulate truck movements and reduce congestion, is deemed unaffordable, with NARTO proposing N2,500 instead.
Government Defends E-Call Up System
Lagos authorities, led by Deputy Governor Obafemi Hamzat, defend the E-Call Up system, designed to prevent gridlock akin to Apapa’s by scheduling truck movements via an online platform.
Permanent Secretary Olawale Musa accused unions of collecting N41,000 daily from drivers without services, emphasizing that the N12,500 fee funds private truck parks to curb illegal parking and environmental issues.
However, IPMAN’s Hammed Fashola criticized the rushed implementation and substandard park facilities, urging dialogue.
Dangote’s Logistics and Credit Strategy
Dangote’s initiative includes over 100 CNG-powered tankers and daughter booster stations to ensure seamless distribution, particularly in rural areas.
A credit scheme for bulk buyers purchasing over 500,000 liters aims to revive dormant stations, reduce inflation, and stimulate SMEs.
The move, bypassing traditional marketers, has sparked concerns from PETROAN about potential monopolization and job losses, with fears it could disrupt local fuel traders’ livelihoods.
Economic and Social Implications
The Lekki-Epe Corridor, hosting critical infrastructure like Dangote Refinery and Lekki Deep Sea Port, faces growing congestion, necessitating the E-Call Up system.
However, the standoff risks fuel scarcity if unresolved, as warned by marketers.
Dangote’s direct distribution, backed by Aliko Dangote’s promised “shakedown” of the downstream sector, could stabilize prices but threatens existing supply chains, highlighting tensions between reform and local interests.
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