Dangote Refinery Receives 1,000 CNG Trucks, Fuel Distribution to Begin in South-West Nigeria
The Dangote Petroleum Refinery is set to launch its direct fuel distribution scheme in the coming weeks as 1,000 Compressed Natural Gas (CNG)-powered trucks have arrived in Nigeria. These trucks will enable the refinery to start fuel distribution to marketers in Lagos, Ogun, and other South-West states, ahead of the arrival of an additional 3,000 trucks from China. The $20 billion Lekki-based refinery aims to reduce logistics bottlenecks and ensure a more efficient fuel supply chain across the country.
According to sources within Dangote Industries, the remaining trucks are expected to arrive before the end of September. The initial distribution plan, which was scheduled to commence on August 15, was delayed due to logistical challenges in China. As of last week, the company had received only 450 trucks, but the number has now grown to 1,000, making it possible to begin operations in phases. Officials confirmed that the distribution will start in the South-West before expanding nationwide as more trucks arrive.
The refinery’s ambitious plan involves deploying 4,000 CNG-powered trucks for nationwide fuel distribution, representing an investment of over N720 billion. This initiative is projected to save Nigerians more than N1.7 trillion annually in fuel distribution costs while reducing cross-border smuggling and promoting environmental sustainability. The company also anticipates creating over 15,000 direct jobs across the logistics value chain, including drivers and filling station operators.
Dangote Industries stated that the new distribution strategy will significantly cut fuel logistics expenses, which currently absorb more than N1.07 trillion annually, while benefiting over 42 million micro, small, and medium enterprises by lowering energy costs. “This strategic programme is part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, and supporting Nigeria’s economic development,” the company said in an earlier statement.
However, the refinery’s move to distribute fuel directly to end-users has raised concerns among tanker drivers and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), who fear that bypassing traditional supply channels could affect their businesses. Following negotiations, Dangote and industry stakeholders have agreed to collaborate to ensure a smooth transition without disruptions in the market.
Source: Business day