Dangote Petroleum Refinery has announced that its N720 billion investment in a nationwide petrol distribution network will save Nigerians over N1.7 trillion each year and provide major relief to more than 42 million Micro, Small and Medium Enterprises (MSMEs).
In a statement released on Sunday, June 30, 2025, the Dangote Group detailed the rollout of 4,000 Compressed Natural Gas (CNG)-powered trucks to drive the initiative, aimed at cutting fuel distribution costs and boosting the economy.
The refinery revealed it will absorb over N1.07 trillion annually in logistics expenses, significantly reducing transportation costs for fuel marketers and large-scale consumers. This move is expected to help lower pump prices, reduce inflation, and enhance the profitability of small businesses nationwide.
“Dangote Petroleum Refinery has invested over N720 billion to deploy 4,000 CNG-powered trucks for distributing petroleum products across the country — a plan that will save Nigerians more than N1.7 trillion annually,” the statement said. “Starting August 15, the refinery will begin direct delivery of petrol and diesel to filling stations, industries, and major consumers.”
The initiative targets Nigeria’s daily consumption of 65 million litres of refined products — 45 million litres of petrol (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel. With logistics costs averaging N45 per litre, the refinery’s support will ease over N1 trillion in annual distribution charges.
Government and Industry Back Move
The presidency and industry experts have applauded the plan, describing it as a breakthrough in promoting gas-powered transportation and addressing long-standing challenges in Nigeria’s fuel supply chain.
Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), called Dangote’s deployment of 4,000 CNG trucks “strategic and transformative,” adding: “This signals to the market that CNG is a viable solution to high energy costs, emissions, and supply chain difficulties.”
Independent Petroleum Marketers Association of Nigeria (IPMAN) also welcomed the development. Spokesperson Chinedu Ukadike said, “Dangote’s intervention removes the logistical burden from marketers, ensuring cheaper fuel delivered directly to stations.”
Economic analyst Bismarck Rewane argued that the initiative addresses inefficiencies in the sector and cuts out middlemen. “By distributing products nationwide at a uniform price and offering credit to retailers, Dangote is tackling long-standing inefficiencies and parasitic layers in the supply chain,” he said.
What to Expect
The initiative will help revive inactive filling stations, create over 15,000 direct jobs across logistics and retail, and support Nigeria’s environmental goals through cleaner CNG-powered trucks.
The refinery emphasised that free logistics support will be extended to registered petrol dealers, manufacturers, telecom operators, aviation firms, and other bulk consumers. The strategy is designed to ease production costs, curb cross-border smuggling, and stimulate broader economic growth.
