By Ademola Adekusibe
September 20, 2025
The National Association of Road Transport Owners (NARTO) has raised the alarm over Dangote Refinery’s reported practice of offering free fuel delivery to filling stations, telecom companies, and other major consumers, warning that the move could destabilize existing agreements and cripple the downstream transport sector.
Speaking in Abuja, NARTO President, Yusuf Othman, said the association’s members had entered into both formal and informal service agreements with various companies to provide petroleum product transportation. According to him, many of those agreements were used as collateral to secure bank loans for the purchase of trucks.
“But now, those agreements are at stake because a big brother is coming to supply directly to them, not minding the fact that they have signed agreements with us,” Othman said. “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.”
Othman disclosed that although the refinery has not officially communicated the development, intelligence gathered by the association indicates that large-scale consumers have already started opting for Dangote’s free delivery option. As a result, many transporters’ trucks are being left idle, raising fears of loan defaults and massive financial losses for operators.
“This is one of the reasons so many of our members are complaining,” he explained. “Our people invested in trucks on the back of binding contracts. Now, if these companies turn away from us because of free supplies, how will transporters repay their bank facilities or keep their operations running?”
The NARTO president urged the Federal Government, particularly the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to intervene, stressing that Section 212 of the Petroleum Industry Act (PIA) clearly prohibits such practices.
“The NMDPRA has already told all of us clearly that this act is an illegal act by virtue of Section 212 of the PIA. We are therefore calling on the government to act swiftly before the situation worsens,” Othman added.
Industry watchers say the development could have broader implications for the petroleum transport sector, where thousands of jobs depend on truck operations. If Dangote Refinery continues with direct deliveries at no extra cost, transport owners fear widespread contract cancellations, a spike in loan defaults, and a ripple effect on employment in the sector.
The Dangote Refinery, which began fuel shipments earlier this year, has not publicly responded to the concerns raised by NARTO at press time.
