The Major Energies Marketers Association of Nigeria (MEMAN) has announced plans to engage the Dangote Petroleum Refinery for clarity on its proposed initiative to begin direct fuel distribution to filling stations across the country, beginning August 15, 2025.
MEMAN’s Executive Secretary, Clement Isong, disclosed this during a webinar hosted by the association on Thursday, noting that the group is taking time to understand the potential impact of the refinery’s new distribution model on the downstream petroleum market.
“We’ve read about the plan in the media, but as it stands, we’re still assessing its implications. We’re watching the market closely and trying to gain a full understanding of what the move entails,” Isong stated. “We will engage directly with Dangote, as well as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other stakeholders, before taking a formal position.”
Awaiting Full Disclosure and Policy Details
Isong emphasized that MEMAN is being cautious not to jump to conclusions without proper insight into the operational details of the Dangote scheme, including pricing, logistics, and regulatory alignment.
“It would be premature and, frankly, irresponsible for us to speculate on the policy implications before having a clear picture,” he said. “Is there an equalisation policy? Will prices be uniform across regions? These are critical questions we must answer before we can accurately assess the potential impact on our members and the broader fuel market.”
Support for CNG Distribution, But Infrastructure Gaps Remain
The marketers’ association welcomed part of the Dangote plan involving the deployment of 4,000 brand-new Compressed Natural Gas (CNG)-powered trucks for nationwide fuel delivery, describing it as an innovative step aligned with federal government policy.
“CNG is the future and a stated policy of the government,” Isong said. “However, we must acknowledge that the supporting infrastructure for large-scale CNG adoption is still under development. While the ambition is commendable, extensive planning and investment are required to make this vision viable in the near term.”
Balancing Innovation and Market Fairness
Responding to rising concerns about potential market dominance by the Dangote refinery, Isong reiterated that regulators must remain vigilant in assessing how innovation intersects with competition.
“It’s the duty of regulators to monitor and determine where innovation benefits the market and where it could start distorting competition. This will require ongoing discussions,” he noted.
He stressed MEMAN’s longstanding advocacy for deregulation and open competition in Nigeria’s oil and gas sector, noting that the rise of initiatives such as CNG transport solutions reflects the kind of innovation that an open market can foster.
“We’ve always argued that deregulation leads to more innovation and ultimately benefits consumers. The move to CNG-powered distribution is a prime example. We’re encouraging our members to embrace such innovations where feasible,” he added.
What’s Next?
The Dangote Refinery’s direct supply initiative is set to launch on August 15, with an initial deployment of 4,000 CNG-fueled trucks aimed at delivering petroleum products directly to retail outlets and bulk consumers nationwide. The move is expected to streamline distribution, cut costs, and potentially reshape Nigeria’s downstream fuel logistics landscape.
As the start date approaches, MEMAN and other key stakeholders are preparing to engage in what could become a pivotal conversation about the future of fuel supply, pricing, and competition in Nigeria.
