A retail outlet owned by Nigerian billionaire Mike Adenuga, Conoil Plc, has begun lifting refined products directly from the Dangote refinery, joining other marketers in bypassing traditional middlemen, as the refinery waives logistics fees.
The development was announced by the Dangote Group on its verified X account on Tuesday.
The scheme has commenced in several states including Lagos, Ogun, Abuja, Edo, Delta, Rivers, Kwara, Ekiti, Osun, Oyo, and Ondo, with additional locations expected to follow.
Other leading petroleum marketers included Eterna PLC, Golden Super, Nepal Energies, Emadeb Energy, Kifayat Global, and Riquest Oil and Gas Limited, have begun lifting refined products ,
Under the programme, refined petroleum products are being supplied at no cost to participating marketers, provided each order meets a minimum threshold of 500,000 litres of petrol or diesel.
The $470 million initiative was first unveiled in June, with the aim of delivering fuel directly to filling stations, manufacturers, airlines, and telecom firms.
Dangote described the move as a “national imperative” intended to reduce reliance on third-party carriers.
Although the scheme was initially scheduled to launch on 15 August, it faced delays due to logistical challenges in receiving 4,000 compressed natural gas (CNG) tankers ordered from China.
By 18 August, fewer than 2,000 tankers had arrived in Nigeria.
Despite the setback, the refinery has proceeded with the rollout in select states using available tankers, with plans to scale up as more shipments arrive.
Industry pushback and controversy
However, the fuel distribution scheme has sparked criticism from several industry groups, who argue that it threatens the viability of smaller operators.
“This unprecedented scale of distribution, if left unchecked, could significantly undermine the independence and survival of thousands of small and medium-scale operators across the country,” said Tekena Ikpaki, chair of the Rivers State chapter of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN).
In addition, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have also voiced concerns.
Both groups accused the refinery of offering preferential pricing to international buyers while charging higher rates to domestic off-takers.
NUPENG further described the scheme as an “unpatriotic ploy” aimed at monopolising Nigeria’s downstream sector, alleging that Dangote was employing “indecent industrial relations strategies.”
Shift in support
Despite initial resistance, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has now directed its members to register for the scheme.
According to a report by The Punch, the union has instructed zonal and depot chairmen to prepare for Dangote trucks to begin delivering products to filling stations nationwide.
Prominent figures such as billionaire Femi Otedola and other independent suppliers have also urged marketers to source fuel from the Dangote refinery rather than rely on imports.
