The National Association of Road Transport Owners (NARTO) has voiced strong concerns over Dangote Refinery’s decision to provide direct fuel supply and free delivery to major consumers, a move the association says is undermining agreements already signed with its members.
NARTO President, Yusuf Othman, explained that many companies, including fueling stations and telecom operators, are now bypassing transporters in favor of Dangote’s delivery system. He noted that these agreements, both formal and informal, had been used by transport owners to secure bank facilities for purchasing trucks.
“We have our members who have signed agreements with so many companies. Some are even informal agreements, but we have formal agreements signed, and by that, we used those formal agreements to collect bank facilities to buy trucks and serve those companies,” Othman said.
According to him, the new policy has placed transport owners in a vulnerable position. “Those agreements are now at stake because a big brother is coming to supply directly to them, not minding the fact that they have signed agreements with us,” he stressed.
Although the refinery has not officially communicated its plan, Othman maintained that information available shows the practice is already ongoing, leaving many trucks redundant and threatening the livelihood of transport owners.
He added, “If I sign an agreement with you for service by virtue of my 10 trucks, and somebody somewhere comes to do the same thing for you for free, it’s a very delicate situation.”
The association has 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, which prohibits such direct supply arrangements.
Meanwhile, Dangote Refinery recently restated that it will not cover logistics costs through subsidies, despite pressure from depot owners and marketers. The company emphasized that those dissatisfied with its position can seek redress in court.
The ongoing dispute highlights the wider challenges in Nigeria’s downstream petroleum sector as players adjust to new realities shaped by the operations of Africa’s largest refinery. Industry observers believe government intervention will be key to balancing the interests of all stakeholders.
