Bold statement: Even Africa’s richest man pauses a bold energy rollout because the risk of theft and security gaps could derail a pivotal shift in fuel distribution. This is the core issue you’ll want to understand as Dangote responds to practical hurdles while pushing a transformative CNG initiative. But here’s where it gets controversial... Dangote’s latest remarks shed light on why the planned rollout of compressed natural gas (CNG)–powered trucks has stalled, even though the vehicles are already stationed at the Dangote Petroleum Refinery. He explained that space constraints at the refinery prevent full deployment because those trucks are not intended to sit idle on site.
In his remarks to the press, Dangote clarified that while the fleet occupies refinery space, real-world deployment is delayed by operational and security concerns. The most pressing problem, he revealed, is the absence of sealed fuel containers. When loading occurs, seals must be in place; otherwise, drivers might siphon fuel for personal use. This security risk, he explained, has effectively halted the on-road rollout until proper seals and safeguards are in place.
Beyond these immediate logistical and security challenges, Dangote used the moment to critique Nigeria’s heavy dependence on long-haul petroleum trucking. He described the current approach as antiquated and inefficient relative to practices in much of the rest of Africa. He argued that the industry needs a fundamental overhaul regardless of whether the trucks are purchased, noting that Nigeria stands out for relying on lengthy truck journeys while many eastern and southern African nations rely on pipelines. He also pointed to the disruption of local pipelines, which complicates reliance on a more modern infrastructure model.
This commentary aligns with the Dangote Group’s broader ambition to reform how fuel is distributed across Nigeria. In June, Dangote Oil Refinery announced plans to resume direct delivery of refined products to filling stations, industrial facilities, and other large consumers nationwide via the CNG truck fleet. The rollout was set to begin in phases from August 15, 2025, with the aim of eliminating intermediaries who typically mark up fuel costs. CNG trucks are projected to operate at roughly 40% lower costs than diesel tankers, a shift expected to substantially cut logistics expenses and apply downward pressure on pump prices.
The refinery projects that a fully operational system could benefit up to 42 million micro, small, and medium-sized enterprises (MSMEs) through reduced energy and transport costs. Yet progress has faced obstacles. Reports from August indicated that only about 1,000 of the planned 4,000 trucks had been delivered, with delays traced to Chinese logistics challenges that disrupted supply timelines and slowed the rollout.
