Dangote Refinery Faces Logistics Challenges in China, Reducing CNG Truck Rollout

What's Happening?

The Dangote Petroleum Refinery's plan to deploy 4,000 compressed natural gas (CNG) trucks has been significantly delayed due to logistics issues in China. Initially scheduled to begin on August 15, 2025, the rollout has been reduced to just 450 trucks received so far. The delay is attributed to a shortage of ships capable of transporting the vehicles from China to Nigeria. Despite the setback, the refinery continues to receive shipments, with 200 trucks arriving initially, followed by 250 more, and an additional 150 expected next week. The refinery aims to enhance its supply chain efficiency and reduce fuel distribution costs by deploying these CNG trucks.

Why It's Important?

The delay in the rollout of CNG trucks at the Dangote Petroleum Refinery has significant implications for Nigeria's fuel distribution sector. The introduction of CNG trucks is intended to reduce gasoline distribution costs by approximately ₦1.7 trillion annually and improve supply chain efficiency. The deployment of these trucks also aligns with global energy transition trends by reducing carbon emissions compared to traditional diesel trucks. However, the logistics challenges could impact job security within the sector, as concerns have been raised about potential job losses among marketers and tanker drivers. The refinery has engaged with industry stakeholders to address these concerns and ensure minimal disruption.

What's Next?

Efforts are underway to resolve the logistics issues and continue the rollout of CNG trucks. The Dangote Group is actively working with industry players to mitigate concerns over job losses and ensure a smooth transition to the new distribution model. The refinery plans to protect the roles of existing workers while integrating the CNG fleet into its operations. As more trucks arrive, the refinery will focus on optimizing its supply chain and achieving its cost reduction goals. The successful deployment of the CNG fleet could serve as a model for other industries seeking to adopt environmentally friendly and cost-effective solutions.