Dangote Set to Suffer Significant Self-inflicted Loss
Africa’s richest man, Aliko Dangote, has conceded that his recently opened oil refinery might be one of the greatest losers from his company’s aggressive investment in Compressed Natural Gas (CNG) vehicles and logistics.
Speaking with the media, the billionaire industrialist revealed that Dangote Cement, one of his own subsidiaries, is a large customer of diesel from the refinery.
The cement factory formerly imported 40,000 tons of fuel every month. However, when the use of gas-powered vehicles becomes more widespread, those purchases will come to an end.
He said this, addressing concerns raised by union groups regarding potential job losses among their members in Nigeria’s downstream oil sector.
“We are generating jobs every day, that’s why sometimes I laugh when NUPENG says there will be losses of jobs,” he stated.
“Who is going to lose, actually? Dangote Refinery will lose, because we will lose a big customer. Dangote Cement used to import 40,000 tons of diesel every month, so now, they will stop buying from us; they will now go and use their gas, CNG.”
Last week, a disagreement arose between the Dangote Oil Refinery and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) concerning the refinery’s perceived anti-union posture, which led to a brief strike.
Union members claimed that Dangote’s new CNG distribution truck drivers were hired on the condition that they would not join the union, a claim Dangote denied at the time.
Before this misunderstanding, groups such as the Products Retail Outlets Owners Association of Nigeria (PETROAN), a non-profit organization representing most of the retail outlet owners and filling stations across Nigeria, and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) also expressed concerns about Dangote’s distribution plan.
They noted that the plan could result in job losses, but Dangote, while speaking to the media, quelled the narrative.
Dangote clarifies purchase of 10,000 trucks, not 4,000
“Gentlemen of the press, our company did not only buy 4000 CNG trucks, we bought 10,000, 4000 tankers, 6000 dry cargoes,” he stated.
“Those trucks when they came, the CNG, they didn’t cause attention, the ones that caused attention were the tanks, the tankers are the ones that actually caused attention.
We have already launched almost 4000, and before the end of the year, the remaining 2000 will arrive, because even today, we have a ship that brings about 200 every day,” he added.
He also noted that by the end of October 2025, all 4,000 tankers are projected to be operational, and by November, 10,250 trucks will be on Nigerian highways.
“By the end of October, all the 4000 tankers will be here, but by the end of November, we will have on the road 10,250 total.”
