The Dangote Petroleum Refinery has unveiled a nationwide direct fuel distribution initiative set to commence on August 15, projecting savings of over ₦1.7 trillion annually by eliminating traditional fuel transportation costs.
In a statement on Sunday, the refinery disclosed that the Dangote Group has already invested more than ₦720 billion in acquiring 4,000 compressed natural gas (CNG)-powered trucks to distribute petrol and diesel directly to filling stations and industrial users across the country.
The initiative is designed to absorb an estimated ₦1.07 trillion in annual distribution expenses, helping to lower pump prices, reduce inflation, and ease logistics pressures on fuel marketers.
“The programme is aimed at supporting over 42 million Micro, Small, and Medium Enterprises (MSMEs) by cutting energy costs and boosting profitability,” the statement read.
With Nigeria’s fuel consumption averaging 65 million litres daily including 45 million litres of petrol, 15 million of diesel, and 5 million of aviation fuel the refinery says its direct-to-market strategy will bypass intermediaries, tackle inefficiencies, and curb cross-border smuggling.
Beyond economic impact, the project is expected to revive dormant filling stations and create over 15,000 direct jobs, spanning roles for truck drivers, CNG station attendants, and depot operators.
As part of a broader push for clean energy, Dangote Group is also building a national network of CNG mother-and-daughter stations to promote environmentally sustainable transport.
The scheme has been widely applauded. Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGi), described it as a “milestone” in Nigeria’s energy transition, proving the viability of gas-powered logistics.
Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson, Chinedu Ukadike, welcomed the development as a long-overdue solution to Nigeria’s distribution bottlenecks.
“With our pipelines out of use for years, this move by Dangote eases a major burden on independent marketers,” Ukadike said.
Experts have also praised the potential impact. Bismarck Rewane, CEO of Financial Derivatives Company, said the scheme will remove middlemen, boost efficiency, and ultimately bring down fuel prices.
Energy analyst Kelvin Emmanuel, co-founder of Dairy Hills, hailed it as a “turning point” in Nigeria’s downstream sector, asserting it could finally allow Nigerians to benefit from local refining.
The refinery says the new model reflects its long-term commitment to economic development, price stability, and energy sustainability across the country.
