Bulk fuel buyers and filling station operators across the country are abandoning intermediaries in favour of direct delivery from the Dangote Refinery, following the launch of its free logistics fuel distribution initiative.

This development was disclosed by the President of the National Association of Road Transport Owners (NARTO), Yusuf Othman, during a live interview on TVC News. Othman criticised the refinery’s free delivery system, saying it is undermining existing agreements between bulk fuel users and transporters affiliated with NARTO.

Othman explained that NARTO members operate approximately 30,000 trucks and cannot afford to provide fuel transportation services at no cost. He noted that many of the agreements—both formal and informal—entered into with clients are now being jeopardised.

According to him, many companies had entered into service agreements with NARTO members, some of which were used as collateral to secure bank loans for the purchase of delivery trucks. He lamented that those deals are now under threat, as Dangote Refinery offers free direct delivery to customers.

“Although there has been no formal notification, we have received credible information that customers are being supplied directly, in violation of existing contracts. This has sparked widespread concern among our members,” Othman said.

He called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene, citing Section 212 of the Petroleum Industry Act (PIA), which he claims prohibits such practices.

Othman urged the Dangote Group to consider the broader implications for other stakeholders in the industry, stating that while the refinery’s success is desirable, it should not come at the expense of other operators’ survival.

When contacted for further comments on Sunday, Othman declined to speak further, revealing that a truce was being considered to allow room for ongoing negotiations.

Prior to this development, middlemen typically procured fuel from depots or refineries and resold to bulk consumers. However, Dangote’s direct-to-customer supply strategy has shifted that model, with buyers now opting for cost-saving direct delivery.

The Dangote Refinery officially commenced its free fuel logistics programme last Monday. The initiative includes the deployment of over 1,000 compressed natural gas (CNG)-powered trucks to distribute fuel across key states.

According to the Dangote Group, the first phase of distribution will cover Lagos, Ogun, Ondo, Oyo, Osun, Ekiti, Edo, Delta, Rivers, Kwara, and Abuja. Plans are underway to expand nationwide as more trucks are added to the fleet.

The new scheme also includes a reduction in pump prices. In Lagos and other South-West states, fuel will retail at N841 per litre, while in Abuja, Rivers, Delta, Edo, and Kwara, the price will be N851 per litre.

In a statement, Dangote Group confirmed that the first deployment phase includes the Federal Capital Territory, Lagos, Kwara, Delta, Edo, Rivers, and South-West states, with nationwide coverage planned as truck availability improves.

Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Abubakar Shettima, confirmed on Friday that deliveries had already commenced. He said Dangote’s trucks were discharging fuel at no cost in several Western states.

Shettima stated that the scheme is operational in Lagos, Ogun, Ondo, and Oyo, adding that the proximity of these areas to the refinery has facilitated early rollout.

He added that marketers under IPMAN were pleased with the arrangement, and confirmed that his members have started receiving products under the free delivery initiative.

Speaking on the pricing, Shettima explained that fuel prices would drop from N865 to N841 per litre at the pump once the Dangote-supplied fuel reaches more stations.

Benjamin Kalu, deputy speaker of the House of Representatives, says concerns about hijack should not prevent the creation of state police.

The national assembly is currently amending the 1999 constitution with the state police bill among the key proposals under consideration.

President Bola Tinubu and several governors have backed the move, saying it would tackle the nation’s prolonged security issues like banditry, kidnappings, and other violent crimes.

“I am reviewing all the aspects of security; I have to create state police. We are looking at that holistically,” Tinubu said early this month.

However, analysts have raised concerns that governors could abuse state police by weaponizing them against the opposition.

‘IT’S FOR GREATER GOOD’

Speaking with journalists on Saturday in Abuja, Kalu, who chairs the House Committee on Constitutional Review, said the unbundling of the current police structure would improve the nation’s security.

“On the state police bill before the parliament, we are thinking about the response time of policing in Nigeria, which at the moment is below the global standard,” he said.

“The only way we can achieve this is if we unbundle it from how it is centralized, like other countries do: Municipal police, and state police.

“Just [as] the constitution is clear on what is on the concurrent and exclusive lists, certain subject matters will now be handled by the state and federal police, respectively.

“Let’s have this conversation on issues like this to know whether you want it or not, or should it be tailored in one way or another.

“There may be fears of hijacking it, but we cannot deny the majority of Nigerians the security of lives and property that we promised them as a government.

“So, we should look at the bigger picture. Everyone in Nigeria may not be a politician, but everyone needs the security of life and property.

“So, we are saying which one should we go for? The greater good or the fear of the minor threat? I think we should go for the greater good so that the good in the majority will suppress the threat in the minority.”

On demand for diaspora voting, Kalu warned that Nigeria must strengthen its local electoral system before allowing citizens to vote abroad.

“Rome was not built in a day. It will happen, but we must first put our house in order. If Nigerians say during constitutional amendment hearings that they want it, we will look at the possibility,” he said.

Billionaire businessman, Mr Femi Otedola, yesterday said more than N2 trillion was siphoned in questionable fuel subsidy claims under the Goodluck Jonathan administration, narrating how he warned the ex-President about fraudulent oil marketers at the time.

In a statement on recent issues in the oil and gas sector, especially in the downstream, Otedola also congratulated Aliko Dangote, on the success achieved so far since his refinery commenced operations, describing it as a historic leap for Nigeria’s energy independence and economic future.

The philanthropist maintained that all these fraudulent subsidy claims were tied to depot licenses, noting that the policy rewarded neither transparency nor innovation, but encouraged rent-seeking and corruption.

“On subsidy, I personally warned President Goodluck Jonathan that he was being misled. The system was built to benefit depot owners, and DAPPMAN (Depot and Petroleum Products Marketers Association of Nigeria) members became the primary beneficiaries.

“Over N2 trillion was siphoned through questionable claims, all tied to depot licenses. The policy rewarded neither transparency nor innovation, it encouraged rent-seeking and corruption,” the business mogul stated.

But more importantly, he noted that credit must go to President Bola Tinubu for doing what no other leader before him had the political will to execute, which is the full deregulation of the downstream petroleum sector.

This singular act, he said, has broken the grip of entrenched interests and ushered in a new era of transparency, healthy competition, and customer-centric service delivery.

“In a sector long plagued by rent-seeking, subsidy fraud, product diversion, and smuggling, this reform marks a decisive break from the past and lays the foundation for a more efficient and accountable energy market. Yet despite this progress, there are still voices clinging to the old ways. Voices determined to resist change, even when it’s clear the tide has turned,” Otedola wrote.

Besides, having followed recent commentary around fuel supply issues, Otedola said that he felt compelled to provide some perspective, especially as it relates to the future of the country, pointing out that Nigeria remains threatened by entrenched cabals who still believe they can block the winds of reform.

Specifically, Otedola took on DAPPMAN, a group of oil marketers that has had a running battle with the Dangote Refinery in recent days on the ground of alleged plans by Dangote to monopolise the sector.

Otedola, going down memory lane, recalled that he founded DAPPMAN 23 years ago, specifically in 2002, with a clear mission to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

According to him, at the time, the association aimed to fill critical supply gaps left by an inefficient downstream system. However, he emphasised that since then, times have changed, with many of the original players having exited the scene, and those left, clinging to assets that no longer reflect today’s business realities.

“But history has shown time and again: you can delay change, frustrate it, even sabotage it but you can never stop it. I founded DAPPMAN in 2002 (23 years ago) with a clear mission, to challenge the dominance of the major marketers and give independent depot owners a fair platform to thrive.

“I personally structured the group, appointing the late George Enenmoh, then Managing Director of Ascon Oil, as Chairman, while I served as Vice Chairman and Sayyu Dantata as Secretary. At the time, depot ownership was strategic. We were filling critical supply gaps left by an inefficient system.

“But times have changed. Many of the original players have exited the scene, and those left are clinging to assets that no longer reflect today’s business realities . I advised some of them as far back as last year to sell their depots as scrap while they still had value. Nigeria now has over 4 million metric tons of storage capacity, most of it idle. With the Dangote Refinery now supplying fuel locally, the old business model is crumbling.

“Zenon Oil pioneered the modern diesel business in Nigeria and grew to become the largest supplier in the country. We built depots to store our imported diesel because the market was import-driven and riddled with inefficiencies. But with Dangote’s refinery fully operational, those gaps no longer exist.

“We now have domestic production and local supply efficient, reliable, and proudly Nigerian. Furthermore, we must not fail to recognise the attendant benefits of eliminating the grid lock around the Ibafon , Tincan and Apapa areas due to the operations of the Dangote Refinery,” Otedola argued.

Today, more than just producing fuel, Otedola noted that Aliko Dangote has elevated the entire logistics chain, purchasing 8,000 brand new CNG eco-friendly trucks that will distribute across the country with less pollution and fewer breakdowns, unlike the aging, rickety trucks still used by some operators.

He added: “I know this business intimately. I was king of it and at the peak of it in 2005 (20 years ago) , I was conferred with the life patron of the PTD (Petroleum Tanker Drivers) union by Mr Akinlaja. So, when I say the game has changed, I speak from deep experience.

“What is DAPPMAN fighting for today? To preserve a model built on fuel imports, subsidy exploitation, and outdated infrastructure? That era is fast disappearing. The setting up of depots was mainly to collect PFIs. No depots, no PFIs (Pro Forma Invoices) from NNPC who were sole suppliers of gasoline (petrol) at the time and which thus led to the breeding of complacent importers whose sole agenda was on arbitrage and subsidy margins.”

Since there are no more PFIs, the businessman argued that there is no reason why the Dangote Refinery should subsidise DAPPMAN with N1.5 trillion which they are asking Dangote Refinery to pay and subsequently pass this cost to consumers.

While saluting the courage of ‘my brother Aliko Dangote, like Amazon Incorporated’ in bringing about transformative change in the downstream sector, Otedola emphasised that the myth that depots generate massive employment was untrue.

“Depots do not drive employment as some claim. A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners.

“If anything, DAPPMAN members should be focusing on owning and scaling last-mile retail outlets, not holding on to tanks built for a fuel import economy that no longer serves us”, he stated.

Taking a cue from the global picture, the philanthropist pointed out that depots in Amsterdam or Houston were designed to serve export markets, especially Africa, but that with Nigeria now refining locally, such infrastructure is increasingly unnecessary.

“The same thing happened in the cement industry. Once Nigeria started producing cement locally, the bulk carriers that used to dock at our ports were retired, many sold as scrap. The same outcome awaits fuel depots,” he said.

If DAPPMAN members do not adapt, Otedola argued that they will not only become irrelevant, but that they may go bankrupt.

Instead of resisting progress, he urged them to consider selling, restructuring, or investing in new value chains, explaining that if they truly believe in competition, they could even come together and acquire the Port Harcourt Refinery and see if they can succeed where NNPC could not.

Even in developed markets, he stated that refinery operators are downsizing their depot footprint, with many converting them into bonded warehouses or exiting completely and mentioning the case of the Folawiyo Group, known for its foresight and integrity, which sold its depot and exited early. “That is strategic thinking,” he posited.

“DAPPMAN had its place but today, its relevance is fast fading. We must stop clinging to outdated privileges and focus on a new era built on self-sufficiency, transparency, and sustainable value creation. Aliko’s refinery is not the problem. It is the solution. Let’s move forward,” he stated.

Stressing that Africans are proud of Aliko Dangote, he said: “And yes, my dear brother Aliko, you can now go to Monaco and rest jejely like me. You’ve earned it.”