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Global Shipping Chaos Halts Dangote’s 3,550 CNG Trucks, Only 450 Land In Nigeria
The planned launch of Dangote Petroleum Refinery’s fuel distribution scheme using 4,000 Compressed Natural Gas (CNG)-powered trucks was delayed on Friday due to logistical challenges in China. The Lekki-based $20 billion refinery had initially announced its intention to deploy the trucks for direct fuel distribution across Nigeria.....KINDLY READ THE FULL STORY HERE▶
Only 450 of the trucks have arrived so far, with a further 150 expected next week, bringing the total to 600 vehicles. A senior Dangote Group executive, speaking on condition of anonymity, explained that insufficient shipping capacity from China prevented the full delivery. “There are not enough ships coming from China to handle 4,000 trucks and 4,000 tankers,” the source said.
The first shipment of 200 trucks has arrived, followed by 250 in the second batch. With just around 11 percent of the trucks available, the refinery’s August 15 launch may require adjustments. The company anticipates 60 shiploads of trucks over the next six weeks, according to Mr. Anthony Chiejina, Group Chief of Branding and Communication at Dangote Industries Limited.
In June, the refinery revealed it was investing over N720 billion to deploy the 4,000 CNG-powered trucks nationwide, a move expected to save Nigerians more than N1.7 trillion annually in fuel distribution costs. The initiative aims to reduce logistics expenses, enhance energy efficiency, curb environmental impact, and stimulate economic growth by benefiting over 42 million micro, small, and medium enterprises.
Chiejina noted that the programme would also create more than 15,000 direct jobs across the logistics value chain, including positions for drivers, station managers, and attendants at CNG stations, while revitalising dormant filling stations and curbing cross-border fuel smuggling.
When first announced in March, the refinery’s plan to bypass middlemen and deliver fuel directly to filling stations, telecommunication companies, and bulk users sparked concern among tanker drivers and members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), who feared significant job losses and supply disruptions. The association warned of potential nationwide shortages and called on the government to intervene.
Following meetings between Dangote and industry stakeholders, NOGASA confirmed that the refinery had agreed to distribute fuel through existing channels, selling products to bulk buyers rather than directly to end users. Chinedu Ukadike, NOGASA’s National Publicity Secretary, stated that the agreement had allayed fears of job losses and safeguarded the existing supply chain.
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