Dangote Petroleum Refinery has rolled out a game-changing initiative, with the investment of over N720 billion in the acquisition and deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks to distribute refined petroleum products nationwide.
The move, which takes effect from 15 August, is projected to save Nigerian consumers over N1.7 trillion annually, slash fuel distribution costs, and boost economic productivity across sectors.
According to a statement from the company, the initiative will see the Dangote Refinery absorb over N1.07 trillion yearly in logistics expenses that fuel marketers currently pass on to consumers. The deployment of the trucks, supported by a network of CNG refuelling stations nationwide, aims to remove one of the major cost drivers incure in the fuel pricing mechanism.
‘With average transport costs at N45 per litre, this free distribution model will not only crash operational costs for marketers but also bring relief to the end-users’, the statement said.
The refinery, located in Lekki Free Zone, Lagos, is targeting the daily delivery of 65 million litres of refined products, including 45 million litres of petrol (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel to filling stations, industries, and large-scale consumers across the country.
Beyond fuel supply efficiency, the initiative is designed to stimulate economic growth and enhance profitability for over 42 million Micro, Small and Medium Enterprises (MSMEs) who rely heavily on energy to power their operations.
With the removal of distribution bottlenecks, the project is expected to lead to a reduction in pump prices, lower production costs across industries, and help tame Nigeria’s persistent inflation, largely driven by energy and transport-related expenses.
The company further revealed that over 15,000 direct jobs will be created across the logistics chain, including drivers, station managers, and personnel for the CNG stations being built to support the fleet.
Dangote Group said the investment also aligns with its commitment to environmental sustainability, clean energy adoption, and the economic diversification goals of the Federal Government.
‘This initiative promotes energy efficiency, reduces Nigeria’s carbon footprint, and supports rural development by revitalising dormant filling stations and improving fuel access in underserved areas’, the statement added.
The direct delivery system is also seen as a strategic move to curb cross-border smuggling of petroleum products, as the company will closely monitor distribution from the refinery to final destinations.
The Presidency has hailed the initiative as a major boost to its CNG transition programme under the Presidential Compressed Natural Gas Initiative (PCNGI).
The Commercial Coordinator of PCNGI, Tosin Coker described the project as a ‘watershed moment’ in Nigeria’s journey toward a gas-fuelled economy.
‘The scale and speed of this intervention signal that CNG is not a futuristic option but a viable solution for today’s energy, logistics, and climate challenges’, Coker stated.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), also expressed strong support for the development. Chinedu Ukadike, IPMAN’s National Publicity Secretary, said Dangote’s intervention was a timely response to infrastructure failures that have plagued the downstream sector.
‘Our pipelines have been out of service for years. Marketers have relied on costly transport from coastal depots. Dangote’s action reduces this burden and will ensure more stable, affordable supply across the country’, Ukadike said.
Renowned economist Prof. Ken Ife said the project would drive down petrol prices and promote inclusivity in energy access. He noted that the initiative would especially benefit MSMEs by reducing their operating costs and increasing competitiveness.
The CEO of Financial Derivatives Company, Bismarck Rewane dismissed concerns about monopoly, stressing that Dangote was simply filling a longstanding gap in the market.
‘Inefficiencies in the system have allowed middlemen to extract value without investment. Dangote’s model cuts out this layer by taking control of the supply chain and even offering credit facilities to retailers’, Rewane noted.
Energy analyst Ibukun Phillips described the project as ‘revolutionary’, pointing out that rural communities—often neglected in fuel distribution—would now enjoy improved affordability and availability.
‘Fuel is typically more expensive in rural areas despite lower incomes. This move can correct that imbalance and stimulate local economic activities’, she said.
Co-founder of Dairy Hills, Kelvin Emmanuel added that this is the most practical demonstration of the benefits of local refining since the end of fuel subsidies.
‘This will finally allow Nigerians to feel the impact of domestic refining—cheaper fuel, better access, and cleaner energy options’, he said.
