The news: “Nigeria’s downstream petroleum sector is poised for a dramatic shake-up as Dangote Petroleum Refinery announces the commencement of direct distribution of Premium Motor Spirit (PMS) and diesel across the country. The new initiative, effective from August 15, 2025, is set to disrupt traditional supply chains and poses serious implications for private depot owners and intermediaries. On Sunday, Dangote Refinery announced it has deployed 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to ensure nationwide delivery of petroleum products.” – BusinessDay
My Comment: From the One Oasis Strategy which I have explained in Tekedia CEO/Director program and pages of Harvard Business Review, the finest companies in the world do identify the “oasis” in the business and build around it. In Dangote Group, the most important unit is the supply chain and logistics, considering that Nigeria does not have a rail track to move goods around. By having the nation’s most advanced supply chain system, Dangote Group puts itself in a position to create a new basis of competition in an asymmetrical way that confuses competitors. Yes, even if you have a refinery, do you have the trucks?
What is the One Oasis Strategy as postulated by Ndubuisi Ekekwe? My voice:
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“My friends, in the theatre of business, where ventures rise and fall like desert mirages, the ‘One Oasis Strategy’ is your compass. Forget chasing every wind; you must identify that single, vital product or service within your enterprise – your oasis. This isn’t just another offering; it’s the core, the indispensable wellspring that sustains your journey in the market’s vast desert.
“Here’s the marrow of it: this strategy is an inward-looking management system. Before you even dream of conquering external markets, you must perfect this oasis internally. Test your strategies, refine your models, stress-test your business systems and production processes with your internal customers first. This methodical, almost scientific approach, minimizes external market risks. It’s about aligning every ounce of your business innovation, every investment, every growth initiative, to favor this best product based on its utility, value, and cost.
“By focusing your resources, your intellectual capital, and your strategic deployment on nurturing this primary ‘oasis’, you naturally build an unassailable advantage. It’s this disciplined, internal perfection that eventually enables your firm to compete, not just adequately, but powerfully and uniquely, on the global stage. It’s how you don’t just survive; you thrive.”
In Dangote Group, the “One Oasis” is the supply chain, built around trucks for petrol, cement, food items, etc. With those trucks, Dangote Group separates itself from every other company in Nigeria’s manufacturing sector. In other words, the Dangote Sinotruk West Africa Ltd is the nucleus that powers the empire in a country with limited supply chain platform.
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This is why anyone who erroneously believes that Aliko Dangote is thriving simply because of government favoritism, must be brought to the market square and be given twelve lashes every market day. A government that is directionless obviously can’t teach or help anyone to run a massive conglomerate. When you fail to give complete credit where it’s due, you display your ignorance and bad faith.
In our kind of environment, to run a big refinery, you will have to take charge of crude oil supply and distribution of refined products, any aspect you leave for partners or other players to handle, they could sabotage your good works. Dangote had to secure crude oil supply from outside Nigeria, got the government to sell local crude oil in Naira in order to keep the price of domestic products within reach, and when it looked like marketers would upend the whole thing, Dangote moved in to takeover the distribution of its refined products. You cannot make these things up.
All the demons surrendering domestic petroleum products and pricing are about to be put to rest forever. Anyone who wants to compete will have to build an entire value chain.
When is Dangote Refinery going public? Because he cannot enjoy all the goodies alone. Brace up.