Dangote Petroleum Refinery is rolling out a ₦720 billion initiative to deploy 4,000 CNG-powered trucks across Nigeria. The project aims to cut over N1.7 trillion in fuel distribution costs for Nigerians each year.
The trucks will deliver fuel directly to filling stations, industries, and bulk consumers. By doing so, the refinery will cover over ₦1.07 trillion annually in logistics expenses.
This new model targets 42 million Micro, Small, and Medium Enterprises (MSMEs). It promises to lower energy bills and improve profit margins. Fuel marketers will no longer bear the cost of transporting products across the country.
Starting August 15, Dangote will begin direct delivery of petrol and diesel nationwide. This move is expected to reduce pump prices and ease inflation.
Refinery Targets 65 Million Litres Daily, Creates 15,000 Jobs
The refinery plans to meet Nigeria’s daily demand of 65 million litres. This includes 45 million litres of petrol, 15 million liters of diesel, and 5 million liters of aviation fuel.
With an average fuel transport cost of ₦45 per litre, the savings will be substantial. Dangote Group is also investing in a national network of CNG stations to support this effort.
The initiative is expected to create 15,000 direct jobs. These include drivers, station attendants, and logistics workers. Dangote says this plan will boost energy access, revive idle filling stations, and help curb fuel smuggling.
The company also believes that better logistics will help reduce inflation. It expects this model to cut production costs and encourage business growth.
Federal Government, Analysts Applaud Strategic Intervention
The Presidency has praised the plan. It is called the move key to Nigeria’s goal of expanding gas-powered transport.
Tosin Coker, coordinator of the Presidential CNG Initiative, said it proves that CNG is now a real and effective solution. “Dangote’s investment shows gas transport isn’t just viable—it’s urgent and necessary,” he said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also welcomed the move. Chinedu Ukadike, its spokesperson, said marketers have long struggled with transport. “We’ve relied on costly trucks from coastal depots. This changes the game,” he said.
Economist Ken Ife believes the plan will reduce petrol prices and bring relief to Nigerians. Financial Derivatives CEO Bismarck Rewane said it replaces wasteful systems with smart solutions.
“Middlemen have drained the system for years,” Rewane said. “Dangote is removing them and giving retailers direct access with built-in credit.”
Energy analyst Ibukun Phillips called the move “revolutionary.” She noted that rural consumers, who often pay more for fuel, will finally get fair access. “This plan could revive many abandoned stations and ensure fair distribution,” she added.
