Self-Service Fuel Stations Launch in Nigeria, Aim to Curb Under-Dispensing
Self-Service Fuel Stations Launch in Nigeria to Curb Under-Dispensing

Self-service fuel stations are emerging across Nigeria, offering motorists the option to buy petrol without interacting with attendants, a move that could address long-standing complaints about fuel under-dispensing and lack of transparency at filling stations. The development is generating optimism in the downstream petroleum sector, with industry stakeholders estimating that Nigerians lose more than N200 billion annually due to under-dispensing by some fuel attendants.

Sunbeth Unveils Digital Fuel Station in Lagos

Sunbeth Energies Limited recently launched its first self-service fuel station at its Ogba outlet in Lagos, allowing motorists to initiate, monitor, and complete fuel purchases independently through a digital platform. The system uses digitally calibrated pumps and cashless payments, giving customers greater control over the fueling process.

Lateef Abioye, managing director of Sunbeth Energies, described the launch as a major step towards modernising Nigeria’s downstream petroleum industry. He said the technology was designed to improve transparency, convenience, and customer confidence by allowing motorists to see exactly how much fuel they are purchasing. One of the first customers praised the experience, describing it as simple, fast, and reassuring because the entire dispensing process could be monitored directly.

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According to Abioye, the Ogba outlet is only the beginning, with the company planning to extend the technology across its retail network. The move comes as regulatory authorities have sanctioned some stations for alleged infractions, but concerns persist over enforcement and the ability to consistently protect consumers, according to a report by Daily Trust.

AA Rano Takes Automation Nationwide

A.A. Rano Nigeria Limited has also introduced 24-hour unmanned fuel stations in partnership with Petrosoft Limited, a Nigerian technology company specialising in management systems for the oil and gas industry. The stations feature automated pumps, contactless payment systems, and real-time surveillance, eliminating the need for attendants during fuel purchases.

The technology is reportedly being deployed across A.A. Rano’s network of about 200 retail outlets, including stations located in border communities with Niger, Chad, Benin, and Cameroon. The companies say the system will reduce operational losses, save man-hours, and improve transparency by ensuring customers receive the exact volume of fuel they pay for.

Petrosoft CEO, Dr Joshua Denila, said the project demonstrates how locally developed technology can address persistent challenges in Nigeria’s retail fuel market. The automation is expected to enhance consumer trust, which has been eroded by frequent complaints of pump tampering and shortchanging at traditional stations.

Workers Raise Unemployment Concerns

Despite the potential benefits, the transition to unmanned stations has sparked concern among petrol station workers. The Concerned Petrol Station Workers, through its convener, Comrade Ibrahim Zango, criticised fully automated stations, warning that the development could threaten the livelihoods of thousands of fuel attendants.

Zango said automation should not come at the expense of workers, particularly at a time of high unemployment and economic pressure. He urged industry stakeholders to create transition opportunities for affected workers rather than simply replacing them with technology.

Energy analyst Rasheed Adeleke said the industry needs a balance between automation and the human workforce to prevent unintended consequences. He noted that while automation can improve efficiency, it must be implemented in a way that does not exacerbate unemployment, which remains a critical challenge in Nigeria.

Regulators Face a Bigger Role

Analysts have also warned that automated stations could face challenges, including unreliable electricity, network failures, maintenance issues, and job displacement. The success of the technology will depend heavily on effective regulatory oversight.

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Stakeholders believe the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must have access to live pump data and enforce compliance where necessary. Regulators have indicated that they are monitoring the emerging technology as part of efforts to improve transparency and strengthen consumer protection in Nigeria’s downstream petroleum sector.

In a related development, fuel retailers across Nigeria have declined to lower their pump prices following Dangote Petroleum Refinery's decision to cut its ex-depot price of petrol by N50 per litre, leaving motorists to bear the full cost of the previous rate. The refinery announced the reduction on Thursday, August 6, bringing the price of Premium Motor Spirit down from N1,215 to N1,165 per litre. Dangote also cut its diesel price by N80 per litre, moving it from N1,650 to N1,570. Despite the adjustment, checks at filling stations showed that the majority of fuel marketers, both major outlets and independent stations, continued to sell petrol at between N1,240 and N1,260 per litre.