The Dangote Petroleum Refinery has begun the phased receipt of 4,000 Compressed Natural Gas (CNG) trucks ahead of the commencement of its nationwide petroleum product distribution operations.
The initiative, part of the company’s logistics programme, is expected to transform product distribution across Nigeria, reduce costs, and improve efficiency for customers.
In June, the refinery announced it had invested over ₦720 billion to implement the scheme, projected to save Nigerians more than ₦1.7 trillion annually. The programme will also benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by cutting energy costs and boosting profitability.
From August 15, Dangote will begin direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers. The refinery said it will meet Nigeria’s daily demand of 65 million litres of refined products—45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and five million litres of aviation fuel.
With average logistics costs estimated at ₦45 per litre, the refinery will absorb over ₦1.07 trillion yearly in free distribution expenses. The ₦720 billion investment also covers the establishment of nationwide CNG “mother and daughter” stations and other infrastructure to sustain the free delivery initiative.
The company described the scheme as a strategic move to eliminate distribution bottlenecks, enhance energy efficiency, promote environmental sustainability, and support economic growth. It is expected to revive dormant filling stations, create over 15,000 direct jobs, curb cross-border smuggling, and promote an environmentally friendly distribution system.
The Presidency hailed the initiative as a major boost to the Federal Government’s drive to mainstream gas-powered transportation. Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Tosin Coker, said the move underscored the viability of CNG as a cost-effective, low-emission energy source.
“Dangote Group’s acquisition of 4,000 CNG trucks is not only impressive in scale but also highly strategic. It signals that CNG is no longer a distant prospect but a practical solution to high energy costs, emissions, and supply chain challenges,” he said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) described the development as a timely intervention in the downstream sector. IPMAN National Publicity Secretary, Chinedu Ukadike, said it would ease the logistical burden on independent marketers, who have faced high transport costs due to non-functional pipelines and depots.
Development Economist, Prof. Ken Ife, said the move would help drive down PMS prices and deliver broad economic benefits, while Financial Derivatives Company CEO, Bismarck Rewane, said it would break the grip of middlemen on the sector by eliminating bridging costs and enabling uniform pricing nationwide.
Energy experts Kelvin Emmanuel and Ibukun Phillips also commended the initiative, describing it as a turning point that could enhance access, affordability, and equitable distribution, particularly in rural areas.
