Dangote’s CNG-fuelled trucks rollout sparks tensions over transport jobs, monopoly concerns

By Faridat Salifu

As Dangote Refinery prepares to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for fuel delivery by August 15, 2025, stakeholders in Nigeria’s downstream oil and gas sector are raising red flags over the impact on transport jobs, fair market access, and the future of independent fuel haulage.

The new CNG fleet part of the company’s push to reduce fuel distribution costs and carbon emissions will deliver petrol, diesel, and aviation fuel directly to retail outlets, telecoms, and industries across the country.

While the move supports Nigeria’s energy transition and aligns with federal goals to deepen CNG use, transport unions and independent marketers say it risks sidelining thousands of tanker drivers and their employers, who have traditionally formed the backbone of petroleum logistics.

Dangote has already offered free nationwide delivery to registered marketers, bypassing third-party transporters entirely.

Sources familiar with the rollout say more than 25 petroleum marketers have signed up, up from just three in May, with many citing cost savings and supply consistency as key drivers.

But for the National Association of Road Transport Owners (NARTO) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), the shift represents an existential threat.

NOGASA has summoned its national leadership to a July 31 emergency meeting in Abuja to evaluate the implications and consider action.

Tanker drivers, already struggling under rising maintenance costs and inconsistent haulage contracts, say the CNG plan could leave thousands jobless overnight.

Market watchers are also warning that Dangote’s scale and in-house delivery model now powered by a more affordable fuel alternative could push smaller players out of business and deepen monopoly risks in the downstream sector.

Billy-Gillis Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the company’s CNG rollout may offer short-term savings but risks undermining fair competition in the long term.

The Dangote CNG fleet comes at a time when Nigeria’s federal government is pushing for accelerated conversion of vehicles and industries to gas, but the lack of a level playing field, stakeholders say, could make one firm the sole beneficiary.

As the refinery scales up production and distribution across Nigeria, attention is shifting from supply breakthroughs to who controls access and who pays the price.