Dangote Petroleum Refinery has invested over N720 billion in the deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks to distribute petroleum products across Nigeria. This initiative is projected to save Nigerians over N1.7 trillion annually in logistics costs by eliminating the need for third-party transporters and reducing fuel distribution expenses, with the company absorbing N1.07 trillion yearly. The move will help reduce the pump price of fuel, enhance energy efficiency, and potentially ease inflation pressures.
Starting August 15, Dangote will commence direct delivery of petrol and diesel to filling stations, industrial sites, and other large-scale fuel consumers. With Nigeria consuming an estimated 65 million litres of fuel daily, the refinery plans to meet demand for PMS (45m litres), diesel (15m), and aviation fuel (5m) while cutting logistics costs currently pegged at N45 per litre. The direct supply will also reduce operational costs for over 42 million MSMEs, improve profitability, and lower end-user fuel prices.
To facilitate this, Dangote is not only acquiring trucks but also setting up nationwide CNG stations (mother and daughter stations). This is part of the group’s broader goal to eliminate logistics bottlenecks, reduce environmental impact, and stimulate economic growth through cleaner energy adoption. The initiative is aligned with the federal government’s push for gas-powered transportation, with the Presidency calling it a landmark step in Nigeria’s energy transition.
The Presidential CNG Initiative (PCNGI) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have hailed the initiative. PCNGI described it as a strategic market signal for CNG viability, while IPMAN commended the move for its potential to resolve logistics and affordability issues in the downstream sector. Analysts say it will also curb petroleum smuggling and address longstanding inefficiencies in fuel distribution.
Industry experts like Prof. Ken Ife, Bismarck Rewane, and Kelvin Emmanuel lauded the development for its likely positive impact on prices, job creation, and energy access—especially in rural areas. With traditional middlemen removed, and abandoned fuel stations possibly revived, this CNG strategy is seen as a revolutionary shift for Nigeria’s petroleum landscape. The initiative is expected to boost green job opportunities and further position Nigeria toward an environmentally sustainable energy future.
Source: Leadership