Business
Is Nigeria ready for unmanned fuel stations?
The nation’s downstream petroleum marketing is set to experience a major shift with unveiling of the first fully automated and unmanned fuel stations by AA Rano Nigeria, a development which has elicited mixed feelings in different quarters. Ibrahim Apekhade Yusuf in this report examines the pros and cons.
When a self-dispensing filling station Pinnacle Oil and Gas Limited owned by Mr. Peter Mbah, first made its debut in Lagos in 2016, it was indeed seen as a novel idea.
Enter AA Rano
But it does appear that the idea whose seed was sown 10 years ago will soon become the in-thing, all thanks to the initiative by AA Rano Nigeria which has hinted of plans to introduce automated, unmanned fuel stations with 24/7 service, digital payments, and SmartPump technology, this month, marking a shift in the downstream petroleum market and altering how motorists purchase fuel and how operators manage retail outlets.
According to the management of the AA Rano Nigeria, founded by oil magnate Auwalu Abdullahi Rano, the stations will offer 24-hour, self-service fueling supported by digital controls and remote monitoring. The project is being implemented through a partnership with Petrosoft Limited, a Nigerian technology firm that develops management systems for the oil and gas industry.
Under the agreement, Petrosoft will deploy its automated station technology across AA Rano’s retail network nationwide.
In a statement by AA Rano, the first unmanned stations are expected to start operations in January 2026, allowing customers to refuel, make contactless payments and complete transactions without attendants.
AA Rano said the technology is designed to reduce losses, improve transparency and reassure customers that they are getting the exact volume of fuel they pay for. Mohammed Sule, general manager for retail at AA Rano Nigeria, said the investment reflects the company’s response to rising competition and changing consumer expectations.
“This is about making fueling simpler, faster and more reliable,” Sule said. “Customers want convenience and trust. Automated stations allow them to fuel at any time, with confidence in what they are buying.”
Petrosoft will power the stations with its SmartPump platform, integrating retail automation, inventory tracking and corporate fuel management. The system enables self-service refueling, fleet vehicle identification and real-time dispenser control, with tank gauging and cloud monitoring to track fuel levels, detect leaks and curb theft.
Petrosoft Chief Executive Officer Joshua Denila said the project shows how homegrown technology can solve long-standing problems in Nigeria’s fuel retail market. “Our systems are developed locally and built to international standards,” Denila said. “They are designed to improve efficiency from single stations to large fueling depots.”
Petrosoft Limited also hopes to deploy its SmartPump technology across AA Rano’s 200 retail outlets nationwide, including border communities with Niger, Chad, Benin and Cameroon.
AA Rano began fuel marketing in 1994 and was incorporated in 2002. Headquartered in Kano, the group operates across the oil and gas value chain, including distribution, marketing, logistics and trading. It runs more than 200 retail outlets supported by a fleet of more than 600 trucks. Recent investments include a 60-million-liter tank farm in Lagos, an LPG terminal and a 20,000-metric-ton LPG facility backed by an acquired vessel.
Auwalu Abdullahi Rano built AA Rano from the ground up, expanding it from a small operation in Kano into a diversified group with interests in oil and gas, aviation and agriculture. Beyond business, Rano is active in social development through charitable efforts. Through the A.A. Rano Foundation, he supports education, health care and youth-focused initiatives across Nigeria.
Matters arising
Expectedly, AA Rano’s project described as laudable in some quarters has also led to some unforeseen reactions.
Petrol station workers under the aegis of the Concerned Petrol Station Workers have opposed plans by AA Rano to introduce what the company described as Nigeria’s first fully automated and unmanned fuel stations.
The workers warned that the move, if implemented without adequate safeguards, could worsen unemployment and contribute to rising insecurity across the country.
The convener of the Concerned Petrol Station Workers and rights advocate, Comrade Ibrahim Zango, expressed strong reservations about the development.
In a statement issued in Kaduna last Thursday, Zango said many young Nigerians currently engaged as petrol station attendants could lose their means of livelihood.
He noted that the timing of the initiative was wrong, given the country’s prevailing economic challenges and rising unemployment rate.
“At a time when Nigeria is already grappling with mass unemployment, rising cost of living, and growing insecurity, deploying job-eliminating technology without safeguards is dangerous,” Zango said.
He urged stakeholders to consider the human cost of the innovation, stressing that thousands of families depend on earnings from petrol station jobs.
“So imagine the number of AA Rano fuel stations alone across the country and even beyond. Imagine the number of pump attendants working and earning their living from these stations,” he added.
Zango said many of the attendants had spent decades in the job and deserved better treatment than being displaced without a clear transition plan.
“To us, sending us out of the jobs some of us have been doing for decades without robust plans will only multiply our crisis as a country,” he stated.
The workers’ leader acknowledged the importance of technological advancement but insisted that innovation should not come at the expense of workers’ welfare.
According to him, automation in the downstream petroleum sector should be designed to create new opportunities rather than eliminate existing jobs.
Zango also called on the Federal Government and relevant regulatory agencies to urgently develop clear policies to balance technological innovation with labour protection.
He further appealed to AA Rano’s management to uphold its social responsibility, noting that many petrol station attendants today were once at the same starting point as the company’s chairman.
“They should not be pushed out of their livelihoods in the name of innovation,” Zango said, urging dialogue between the company, workers, and regulators before the project is implemented.
Nigeria not alone
Apart from Nigeria, several African countries are adopting automated and contactless fuel dispensing, most notably South Africa, Kenya, Uganda, Tanzania, and Ghana.
From available information, The Nation can authoritatively report that in South Africa, contactless fleet fueling solutions have been deployed by companies like OTI PetroSmart.
The country has generally high adoption of general contactless payment methods, which facilitates the use of such systems.
Kenya, Uganda, and Tanzania: The company Pesapal launched a forecourt management solution in these countries in January 2023 that integrates digital and mobile money payments, enabling automation and remote monitoring of fuel stations.
While not fully automated unmanned stations as in Nigeria, Ghana uses digital retail outlet fuel monitoring systems, and local stations are implementing technology for real-time sales and tank data management.
These platforms aim to improve efficiency, transparency, and the customer experience, often using locally developed technology to address specific market challenges.
Best practice abroad
According to Dotun Morgan, a petroleum economist, there are contactless fuel stations in the USA, Canada, Japan, China, most of which have been serving the public interest from time immemorial.
While acknowledging that it is an emerging trend in Nigeria today, Morgan said matter-of-factly that contactless fuel stations are available and widely implemented in the USA, Canada, Japan, and China, although the technology and prevalence can vary by station and region.
“In the United States for instance, contactless payment is widely available at many major fuel chains, often through mobile apps or tap-to-pay options at the pump and besides, many major brands like ExxonMobil, Shell, BP, and Chevron offer dedicated apps that allow you to pay at the pump from your car using geolocation or QR codes.
“This is just as many modern pumps are equipped with NFC (Near Field Communication) readers, allowing payment with smartphones (Apple Pay, Google Pay) or contactless credit/debit cards. While many stations have the hardware, the service is not universally enabled at all locations, so it’s best to look for the universal wave symbol or check the app for participating locations.”
Expatiating, he said, “In Canada, contactless payment is common and readily available at most major fuel retailers. Companies like Petro-Canada have mobile apps that support contactless payment, including Apple Pay and Google Pay, and allow users to manage loyalty points and activate car washes and most modern pumps support standard tap-to-pay options using credit cards, debit cards, or mobile wallets. There are several self-service gas stations common in Japan, and most of these accept credit cards at the pump.
“The self-service terminals usually feature a touchscreen interface. While an English language option is often available, major credit cards are accepted directly at the pump. China is rapidly adopting advanced, highly automated contactless refueling technologies, as many major oil companies like CNPC have rolled out “non-contact refueling” services, where customers can pay via mobile payment platforms (like Alipay or WeChat Pay) using QR codes or in-car infotainment screens.”
Some smart stations are even testing fully automated, robotic refueling systems where a robotic arm handles the entire process, including payment authentication via plate recognition, without the driver needing to leave the vehicle.
Pre-COVID 19, U.S. gas stations were making the transition to more contactless solutions for their customers with Chevron becoming the first official Apple Pay partner in 2016.
Mobil, the first U.S. gas retailer to introduce pay at the pump in 1986, offered motorists the first mobile payment option in 1997 with its Speedpass key tag. By 2015 ExxonMobil was allowing customers a contactless pump and pay solution on their smartphones.
While most retailers had to switch to EMV technology by 2015 – or risk being on the hook for fraudulent credit card activity – U.S. gas retailers originally had until October 2020, to make the change because of the time and cost associated with upgrading each pump.
Even before the COVID-19 pandemic changed the way we think about contact with high-touch surfaces and face-to-face transactions, U.S. gas stations were embracing contactless solutions for motorists.
Also in Saudi Arabia, running a fuel station without automation is no longer possible. The Arabian country is rapidly adopting automated and contactless fuel/gas platforms, driven by Vision 2030 and government mandates for digital transformation, with solutions like QR code payments (STCPay), RFID systems, and self-service terminals allowing for unattended, app-based fueling and payments, reducing manual work and improving efficiency.
The government requires fuel stations to have management systems for tax compliance, with plans to phase out non-compliant manual operations.
Automation ensures adherence to regulations, improved security, and accurate reporting, moving away from paper-based systems.
The Saudi government stipulates that all gas stations must have a fuel management system and be connected to the tax system to print receipts.
This correspondent had in 2017, during a pilgrimage to the Holy land saw a few gas stations that were self-service, and this was at a time the idea was pretty unknown anywhere such that yours truly was awestruck by the experience.
Unfounded fears about new technology
Checks by The Nation revealed that the country currently has over 22,681 registered filling stations.
While commenting on the fears being expressed by workers over loss of jobs, Stanley Okafor, a public affairs commentator said it is unfounded given the fact that AA Rano’s phased introduction of 200 automated filling stations represents less than one percent of the entire population size of the fuel stations nationwide.
“It is true that AA Rano is leading the vanguard of those bringing innovation into the downstream sector but it doesn’t mean that they will change things overnight, it will be a gradual thing.”
Pressed further, Okafor said, unlike the conventional platforms, contactless fuel stations offer significant advantages for both customers and station operators, focusing on speed, security, and efficiency.
While commenting on the benefits, he said it aids speed and convenience especially as transactions are completed in seconds, cutting transaction time by up to 50%.
This reduces wait times and allows drivers to refuel and leave quickly, Okafor stressed.
Automated, contactless stations operate around the clock, providing fuel access at any time without the constraints of traditional operating hours, just as it minimises physical contact with keypads, cash, and other shared surfaces reduces exposure to germs and viruses, a significant benefit for public health.
Besides, contactless payments use secure technologies like tokenisation and encryption (NFC and RFID), making it difficult for fraudsters to skim card data and providing better protection than magnetic stripe cards.
Unmanned fuel station an idea whose time has come!
For many Nigerians, automated and contactless fuel stations are a phenomenon that has come to stay and therefore inevitable.
While acknowledging that AA Rano is currently at the forefront of the innovation, analysts have argued that major players like NNPC Limited, TotalEnergies, Eterna, Ardova PLC (AP), and Total Plc (now TotalEnergies Marketing Nigeria Plc) are more than likely to adopt similar technologies or partner with local tech firms like Petrosoft or international providers like 360Fuel.
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