Dangote Group Expands Logistics Fleet with 10,000 Trucks Amid Union Dispute
Dangote Group has announced a major expansion of its logistics capacity with the acquisition of 10,000 trucks, including 4,000 compressed natural gas (CNG) fuel tankers and 6,000 dry cargo vehicles. The investment is part of a broader strategy to modernise the company’s transport operations, is also aimed at strengthening the distribution of refined products and raw materials across its businesses.
The announcement was made by Aliko Dangote, President and Chief Executive of Dangote Group, during a media session in Lagos. He explained that 4,000 of the trucks have already been deployed, while the remaining vehicles are expected to arrive by the end of November. According to him, shipments are arriving daily, with the full fleet projected to be operational before year-end.
Job Creation vs. Job Losses Debate
While the expansion is one of the largest truck acquisitions in Africa’s private sector, it has sparked tension with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG). The union has raised concerns that the company’s move could side-line existing operators and lead to job losses in the trucking industry.
Dangote has dismissed these fears, noting that each truck requires an average of six workers for operations, maintenance and logistics. This, he said, translates into tens of thousands of new jobs. Specifically, the 4,000 tankers alone could create approximately 24,000 employment opportunities.
He also highlighted that drivers employed by the company earn nearly four times the national minimum wage and benefit from incentive schemes such as housing loan eligibility for accident-free service over five years.
Why the Trucks Matter
Dangote Group’s latest acquisition is not only about scale but also about efficiency and energy transition. The 4,000 CNG-powered trucks represent a shift towards cleaner fuel alternatives, aligning with Nigeria’s growing emphasis on gas as a transitional energy source. The vehicles will support Dangote’s cement operations, coal transportation, and refined product distribution, including from the Dangote Petroleum Refinery.
Explaining the move, Aliko Dangote said: “What we are trying to do is modernise this,” highlighting the company’s drive to improve logistics efficiency and reliability across its operations.
The refinery, Africa’s largest, with a capacity of 650,000 barrels per day, began direct petrol (PMS) distribution to 11 Nigerian states on September 15, 2025. The truck investment, worth an estimated ₦720 billion, is central to its goal of supplying 65 million litres of refined products daily while boosting downstream efficiency.
Labour Relations Remain a Flashpoint
Despite assurances of job creation, NUPENG has remained cautious, pointing to disputes over union rights. Earlier this year, a two-day strike was suspended after the Department of State Services (DSS) brokered an agreement mandating unionisation of willing employees and protection of workers’ rights.
Tensions flared again after reports surfaced that drivers were allegedly instructed to remove union stickers and that officials used security agencies to disperse union leaders. NUPENG has since placed its members on red alert and called on government and civil society groups to intervene, stressing that no corporate entity should operate above the law.
The Bigger Picture
The Dangote trucking expansion underscores the critical role of logistics in Nigeria’s industrialisation and energy transition. On one hand, the investment represents a bold step towards modernising transport infrastructure and creating employment. On the other, it highlights the persistent friction between private-sector expansion and labour unions in a country where logistics remains central to economic competitiveness.
For the logistics sector, the development raises key questions:
Can large-scale private logistics operations coexist with independent operators without squeezing them out?
Will CNG-powered fleets become the standard for long-haul transportation in Nigeria?
And how can companies balance efficiency with fair labour practices in a fragile industrial relations environment?
As the trucks continue to roll out, the answers to these questions will shape not just the Dangote Group’s operations, but the future of logistics in Nigeria.
