Aliko Dangote’s plan for a “total overhaul” of Nigeria’s downstream oil sector has stirred anxiety among investors, with signs pointing to a major industry shakeup.
Aliko Dangote’s plan for a “total overhaul” of Nigeria’s downstream oil sector has triggered alarm among industry players and investors, a BusinessDay investigation reveals.
Though Dangote has not disclosed full details, his recent comments have stoked fears of a sweeping realignment. During a presidential visit to his refinery, he said, “We are going on a massive trajectory, much more than what you have seen here… Nigerians will hear from the company soon.”
Insiders suggest the Dangote Group is preparing to launch a vertically integrated retail and logistics operation. One source disclosed that the company may acquire up to 4,000 fuel trucks to deliver products directly from the refinery to petrol stations.
“If it’s true that Dangote is moving toward direct delivery… depot owners will have to rethink their role,” said an industry executive.
Dangote also told reporters, “This will be one of the major shakeups in the entire country,” hinting that the changes go beyond pricing into structural reform.