The Dangote Refinery has officially commenced the phased deployment of 4,000 Compressed Natural Gas (CNG) trucks to kickstart its nationwide distribution of petroleum products, marking a transformative shift in Nigeria’s downstream sector logistics.
The move, according to a statement issued by the company, forms part of a ₦720 billion logistics infrastructure programme aimed at reducing fuel distribution costs, enhancing efficiency, and stabilising pump prices across the country.
The free delivery initiative, scheduled to begin on August 15, will see the direct dispatch of petrol, diesel, and aviation fuel to filling stations, industrial hubs, and high-volume consumers across Nigeria.
“This strategy will eliminate significant distribution bottlenecks, reduce inflationary pressures, and lower pump prices by absorbing logistics costs,” the refinery noted.
Game-Changer for Fuel Distribution
At the core of the initiative is the integration of CNG-powered trucks an environmentally friendly and cost-effective alternative to diesel-powered transport designed to curb Nigeria’s overreliance on conventional fuel logistics. The programme includes the construction of CNG mother-and-daughter stations nationwide to support seamless operations.
The trucks will help distribute Nigeria’s estimated daily consumption of:
- 45 million litres of Premium Motor Spirit (PMS)
- 15 million litres of Automotive Gas Oil (diesel)
- 5 million litres of aviation fuel
By absorbing an estimated ₦45 per litre in logistics costs, Dangote is expected to save Nigerians over ₦1.7 trillion annually in fuel-related expenses.
“The direct delivery model will revitalise dormant fuel stations, reduce operating costs for Micro, Small and Medium Enterprises (MSMEs), and support over 42 million businesses nationwide,” the statement added.
Economic and Employment Impact
The logistics programme is projected to create over 15,000 direct jobs, spanning truck drivers, station attendants, depot operators, and CNG service personnel.
Additionally, the move is expected to discourage fuel smuggling across borders, enhance product availability in remote areas, and promote environmental sustainability through reduced emissions.
Stakeholder Endorsements
The initiative has received high praise from key industry stakeholders and the Federal Government. The Presidential Compressed Natural Gas Initiative (PCNGI) described the acquisition of 4,000 CNG trucks as a milestone in Nigeria’s energy transition.
“Dangote’s investment signals that CNG is no longer a futuristic idea it’s here, now, and solving real supply chain problems,” said Tosin Coker, PCNGI Commercial Coordinator.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also hailed the development as a timely intervention that addresses a long-standing infrastructure gap.
“This is a major relief for marketers who’ve had to bear exorbitant transport costs due to non-functional pipelines and depots,” said Chinedu Ukadike, IPMAN’s National Publicity Secretary.
Looking Ahead
The refinery’s logistics overhaul represents a broader ambition to strengthen local refining capacity, increase fuel accessibility, and reposition Nigeria as a leader in clean, affordable energy distribution.
With refinery operations ramping up, the Dangote Group says it remains committed to supporting national economic growth, job creation, and long-term energy security through private-sector-led infrastructure investments.
