Dangote Petroleum Refinery has launched a transformative nationwide distribution initiative with the investment of over ₦720 billion in the acquisition of 4,000 Compressed Natural Gas (CNG)-powered trucks, Okay.ng reports.
The project, which kicks off August 15, aims to cut logistics expenses, lower fuel prices, and save the Nigerian economy over ₦1.7 trillion annually, marking what many analysts have hailed as a watershed moment in the country’s downstream energy sector.
In a statement on Sunday, the company revealed that the new CNG-powered fleet will absorb more than ₦1.07 trillion yearly in transportation costs currently passed on to consumers by fuel marketers. The initiative also includes the deployment of CNG refuelling stations across Nigeria to support seamless operations.
“With average transport costs at ₦45 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.
Located in the Lekki Free Zone, Lagos, the refinery plans to deliver 65 million litres of refined products daily, including 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel to consumers, industries, and filling stations across the country.
The initiative is also expected to stimulate growth for over 42 million Micro, Small and Medium Enterprises (MSMEs) that depend on fuel for their operations, while easing Nigeria’s inflation pressures and energy-related costs.
Over 15,000 direct jobs will be created, including positions for drivers, CNG station managers, and support personnel, the company disclosed. It also affirmed that the plan aligns with the Federal Government’s clean energy and economic diversification agenda.
“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 company added.
As a control mechanism, the refinery will implement a direct delivery system that tracks fuel movement from its facilities to final destinations, helping to curb cross-border smuggling.
The Presidency has applauded the development as a major leap under its Presidential Compressed Natural Gas Initiative (PCNGI). Tosin Coker, PCNGI’s Commercial Coordinator, called the move “a watershed moment in Nigeria’s journey toward a gas-fuelled economy.”
Reactions from key stakeholders have also been overwhelmingly positive. The Independent Petroleum Marketers Association of Nigeria (IPMAN), through its spokesman Chinedu Ukadike, praised Dangote’s timely response to the sector’s infrastructural shortcomings.
“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,” he said.
Top economist Prof. Ken Ife believes the move will drive down petrol prices, expand energy access, and improve competitiveness for MSMEs. Bismarck Rewane, CEO of Financial Derivatives Company, dismissed monopoly concerns, noting that Dangote is simply “filling a longstanding gap in the market”.
Energy expert Ibukun Phillips described the development as “revolutionary”, with the potential to bridge rural-urban disparities in fuel access. Meanwhile, Kelvin Emmanuel, co-founder of Dairy Hills, said Nigerians will finally “feel the impact of domestic refining—cheaper fuel, better access, and cleaner energy options.”
