Dangote Faces Self-Inflicted Refinery Loss Amid CNG Shift
Africa’s richest man, Aliko Dangote, has admitted that his new oil refinery could suffer significant losses as a result of his own company’s aggressive investment in compressed natural gas (CNG) vehicles and logistics.
Speaking to the media, Dangote revealed that Dangote Cement, a key customer of diesel from the refinery, is switching to CNG-powered trucks. The cement subsidiary previously imported about 40,000 tons of diesel monthly, but with the rollout of CNG vehicles, those purchases will cease.
“Dangote Refinery will lose, because we will lose a big customer,” he said, countering union concerns over potential job losses in the downstream oil sector. “We are generating jobs every day.”
The clarification comes after a brief strike by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over alleged anti-union practices, which was resolved amicably.
Dangote also disclosed that his company had acquired 10,000 trucks—4,000 tankers and 6,000 dry cargo vehicles—far more than earlier reports suggested.
He confirmed that 4,000 tankers will be operational by October, and by November, a total of 10,250 trucks will be on Nigerian highways.
Stakeholders including the Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) have raised concerns about potential job disruptions.
Dangote, however, insists the expansion will create substantial employment opportunities.
