By Ayomide Otitoju
Dangote Petroleum Refinery has launched a ₦720 billion investment initiative to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks across Nigeria, a move projected to save the country over ₦1.7 trillion annually in petroleum product distribution costs.
In a statement on Sunday, the refinery’s media team disclosed that beginning August 15, Dangote will commence direct delivery of petrol, diesel, and aviation fuel to filling stations, industrial hubs, and large-scale consumers, eliminating intermediaries and bridging costs that have long inflated pump prices.
The initiative, designed to meet Nigeria’s daily fuel consumption of 65 million litres — including 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel — is expected to significantly reduce inflation and improve energy access for over 42 million Micro, Small, and Medium Enterprises (MSMEs).
With logistics costs averaging ₦45 per litre, the company will absorb an estimated ₦1.07 trillion annually in distribution expenses. The rollout will also include the establishment of a nationwide network of CNG mother and daughter stations.
“This strategic programme aims to eliminate logistics bottlenecks, promote environmental sustainability, and drive inclusive economic growth,” the statement read. “It will also revive dormant filling stations and create over 15,000 direct jobs across the logistics chain.”
The Presidency hailed the initiative as a pivotal moment in Nigeria’s push for gas-powered transportation. Tosin Coker, Commercial Coordinator of the Presidential CNG Initiative, described the move as “a strong vote of confidence in Nigeria’s gas-fueled future.”
Independent Petroleum Marketers Association of Nigeria (IPMAN) also praised the move, with National Publicity Secretary Chinedu Ukadike noting it would ease long-standing burdens for marketers forced to rely on expensive haulage from coastal depots due to inactive pipeline infrastructure.
Economist Professor Ken Ife and Financial Derivatives CEO Bismarck Rewane agreed the plan would stabilize fuel prices and streamline the distribution network by bypassing middlemen. Rewane said Dangote’s model not only ensures price uniformity nationwide but also injects efficiency into fuel logistics by offering credit at the retail end.
Energy experts described the initiative as transformative, particularly for rural consumers. Kelvin Emmanuel of Dairy Hills said absorbing transport costs would allow Nigerians to “finally enjoy the full benefits of local refining,” while analyst Ibukun Phillips called it a “revolutionary shift” that would democratize energy access and revive neglected fuel stations.
The initiative positions Dangote Refinery as a key player in reshaping Nigeria’s downstream petroleum sector and advancing the country’s energy independence goals.
