The Dangote Petroleum Refinery is poised to commence nationwide distribution of petrol and diesel on August 15th, injecting much-needed fuel into a market grappling with potential scarcity fears. This strategic move comes amidst escalating tensions between tanker drivers and the Lagos State Government over the implementation of the electronic call-up system (E-Call Up) designed to regulate traffic flow, particularly along the crucial Lekki-Epe corridor. The system, while intended to address the perennial gridlock issues plaguing the state’s transportation networks, has become a point of contention due to the associated fees. Tanker drivers and fuel marketers have threatened to halt fuel loading in protest against the perceived exorbitant cost of N12,500 per truck for using the E-Call Up system, potentially exacerbating the existing fuel supply concerns.
Dangote Refinery’s intervention seeks to alleviate these concerns by significantly boosting fuel delivery capacity across Nigeria. The company plans to deploy 4,000 brand-new CNG-powered tankers, offering their services to a wide spectrum of fuel consumers, including marketers, petrol station dealers, manufacturers, telecom operators, airlines, and other large-scale users. This initiative, coupled with the establishment of booster CNG stations and a dedicated fleet of over 100 gas-powered tankers, will further streamline the distribution network and reduce operational costs for businesses, ultimately benefiting the end consumer. The move is in line with Dangote’s commitment to optimizing logistics, promoting energy efficiency, and supporting Nigeria’s economic growth.
The timing of Dangote’s announcement is significant given the backdrop of escalating fuel scarcity fears. Marketers have expressed concerns that the tanker drivers’ threatened strike, protesting the E-Call Up system fees, could trigger widespread fuel shortages. The Lekki-Epe corridor, a critical artery for commercial and industrial activities, including the Dangote refinery, Lekki Deep Sea Port, and various oil and gas installations, has experienced increasing congestion due to the surge in economic activity. The Lagos State Government implemented the E-Call Up system to regulate truck movements, prevent illegal parking, and improve traffic flow along this vital route. However, the implementation has been met with resistance from tanker driver unions, who argue that the N12,500 fee is excessively high.
The crux of the dispute lies in the cost of using the E-Call Up system. While the Lagos State Government maintains that the fee is necessary to maintain the infrastructure and manage the system, tanker drivers, represented by the National Association of Road Transport Owners (NARTO), and fuel marketers, under the Independent Petroleum Marketers Association of Nigeria (IPMAN), contend that the cost is prohibitive. NARTO has proposed a significantly lower fee of N2,500 per truck, arguing that the current rate is unsustainable and will ultimately be passed on to consumers, further driving up fuel prices. IPMAN also opposes the high fee, emphasizing the need for stakeholder engagement and a more gradual implementation of the E-Call Up system to minimize disruption to the fuel supply chain.
Further complicating the matter are allegations from IPMAN that the E-Call Up designated truck parks are inadequate and lack the necessary facilities to accommodate the large number of trucks expected to utilize them. They claim not to have been consulted on the design and construction of the parks, raising concerns about their suitability and safety. IPMAN has also questioned the transparency of the fee structure, alleging that the government has not adequately explained how the collected funds will be utilized. They propose that if the government is not directly benefiting from the fees, it should allow private operators to manage the parks and negotiate directly with the drivers on a more reasonable cost structure.
The Lagos State Government, however, defends the E-Call Up system and the associated fees. Officials argue that the N12,500 fee is not going into government coffers but is intended to cover the costs of operating and maintaining the system, including the truck parks equipped with amenities for drivers. They accuse the tanker driver unions of being disingenuous, claiming they collect significantly higher amounts from drivers without providing comparable services. The government maintains that the E-Call Up system is essential to manage the increasing traffic congestion along the Lekki-Epe corridor and prevent it from descending into the chaotic gridlock experienced in other parts of the state. They emphasize the need for compliance with regulations to ensure the smooth flow of traffic and maintain order on the roads. The standoff between the government and the tanker drivers underscores the delicate balance between regulating essential services and managing the economic impact on stakeholders. The resolution of this dispute is crucial to avert potential fuel shortages and ensure the smooth operation of the vital Lekki-Epe corridor.
