Aliko Dangote’s refinery in Nigeria has postponed the start of its fuel trucking operations after delays in the delivery of gas-powered vehicles ordered from China, as reported by Bloomberg.

The refinery, Africa’s largest single-train facility with a processing capacity of 650,000 barrels per day, has so far received only about 15 percent of the 4,000 compressed natural gas (CNG) trucks it purchased. Devakumar Edwin, vice-president at Dangote Industries, said the setback was caused by a shortage of available vessels from China. Distribution, originally scheduled to begin on August 15, will commence once further consignments arrive.

The investment in trucks, valued at around 469 million US dollars, is central to Dangote’s plan to integrate logistics into refining operations. The company has adopted a similar approach in cement and sugar, where in-house fleets bypass unions and deliver directly to retailers.

The CNG initiative is also aligned with Nigeria’s Presidential Compressed Natural Gas Initiative, which seeks to promote gas-powered transport. Dangote’s plan involves not only the 4,000 trucks but also the installation of 100 filling stations nationwide. The refinery expects the move to cut distribution costs by as much as 1 trillion naira (651 million US dollars) annually, savings that could ease pressure on inflation.

Nigeria’s 20 billion US dollar refinery, inaugurated in May 2023, was designed to reduce the country’s reliance on imported fuel. Most of its products are shipped by sea to depots in coastal states before being trucked inland. By deploying its own fleet, Dangote Industries hopes to improve supply efficiency to northern states and expand market reach to millions of small businesses.

Despite the logistical challenges, roughly 1,000 trucks are now on the ground, with the remainder expected to arrive within six weeks, according to industry reports. The rollout is projected to create more than 15,000 jobs, revitalise idle filling stations, and strengthen efforts to curb fuel smuggling across borders.