Why Dangote is Bypassing Coastal Depots to Flood Nigeria With Trucked Petrol

Nigeria’s 650,000 barrels per day (b/d) Dangote refinery has cut gasoline shipments from its Lekki seaport to prioritize domestic truck supplies, a company executive said Dec. 19.

With a mandate to supply Nigeria’s local fuel market, the private refinery typically directs the majority of its supply to other parts of the country from its seaport and truck gantry.

The decision by Dangote Petroleum Refinery to scale back sea-bound gasoline (PMS) shipments in favor of truck loadings represents a major strategic pivot toward domestic market saturation.

By prioritizing its 2,900-truck-per-day loading gantry, the refinery is effectively bypassing coastal third-party depots and moving toward a “direct-to-retail” model.

An executive of the Refinery told Platts that the move had engendered market efficiencies amid higher truck demand.

The move is also designed to solve several logistics and pricing bottlenecks that have historically plagued the Nigerian downstream sector.

Sea shipments require offloading at coastal depots, which often add storage and handling fees. By trucking directly from the Lekki Free Zone, Dangote eliminates these “middleman” costs, supporting his recent aggressive price cut to ₦699 per litre.

The refinery is targeting a nationwide retail pump price of ₦740/litre. Focusing on truck loadings ensures that the lower “refinery-gate” prices reflect at the pump immediately, rather than waiting for sea-bound volumes to clear through various maritime channels.

Over 1,000 trucks load daily

Dangote Refinery recently announced a drastic cut in the minimum purchase requirement from 2 million litres to 250,000 litres.

To further reassure marketers, the refinery has introduced a 10-day bank guarantee system, ensuring uninterrupted supply and strengthening confidence in its operations.

Since the announcement, the response from fuel marketers has been overwhelming. The refinery now records over 1,000 trucks loading PMS daily from its gantry, according to its management.

President of Dangote Group, Aliko Dangote, said: “Our goal has always been to make energy affordable and accessible for every Nigerian. By reducing prices and lowering the minimum purchase volume, we are empowering both large and small marketers to participate in the market, ensuring fuel reaches every corner of the country.”

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