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By Tracy Moses
The National Association of Road Transport Owners (NARTO) has expressed concern over reports that Dangote Petroleum Refinery is offering free fuel delivery services directly to filling stations, telecommunications companies, and other major consumers, bypassing intermediary suppliers.
Speaking in Abuja on Monday, NARTO President, Yusuf Othman, said the development poses a serious threat to existing contractual agreements between transport owners and their clients, many of whom are now abandoning signed commitments in favor of Dangote’s free delivery.
Othman noted that several NARTO members had entered into both formal and informal service agreements with companies, with many leveraging such contracts to secure bank loans for the purchase of trucks.
“We have our members who have signed agreements with so many companies. Some are informal, but others are formal agreements that were used to obtain bank facilities to buy trucks and serve these companies,” Othman stated.
“But now, those agreements are at stake because a big brother is coming to supply directly to them, without considering the fact that they have existing commitments with us. Though not officially confirmed, the information available to us indicates this practice is ongoing. As such, our trucks will no longer be engaged, and that is why many of our members are complaining,” he added.
The NARTO boss described the situation as delicate and unsustainable, stressing that it undermines long-term investments made by transporters who rely on such contracts to remain in business.
“If I sign an agreement with you for service with my 10 trucks, and someone else comes to do the same thing for you free of charge, it is a very delicate situation,” Othman explained.
He urged the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene, citing Section 212 of the Petroleum Industry Act (PIA), which, he said, makes such practices illegal.