Dangote Petroleum Refinery has unveiled a major investment initiative aimed at slashing Nigeria’s annual fuel distribution costs by over N1.7 trillion while providing a significant boost to more than 42 million Micro, Small and Medium Enterprises (MSMEs).
In a statement issued on June 30, 2025, the Dangote Group announced that it has committed over N720 billion to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide delivery of petrol, diesel, and other petroleum products.
The refinery disclosed that this move will eliminate transportation costs for marketers and bulk consumers, a measure projected to reduce pump prices and curb inflation. It will also ease operational burdens for small businesses by lowering energy expenses and enhancing profitability.
According to the statement, from August 15, Dangote will commence direct fuel deliveries to filling stations, industrial plants, and other high-volume users. With Nigeria’s daily fuel consumption estimated at 65 million litres — including 45 million litres of PMS, 15 million litres of diesel, and 5 million litres of aviation fuel — the refinery expects to absorb over N1.07 trillion annually in logistics costs, currently averaging N45 per litre.
The initiative has drawn praise from the Presidency and key industry stakeholders. Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), lauded the effort as a game-changer in Nigeria’s push for a gas-powered transport future.
“This signals to the market that CNG is no longer a future ideal but a practical, present-day solution to rising energy costs and logistics inefficiencies,” Coker said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also welcomed the development. National Publicity Secretary Chinedu Ukadike said Dangote’s distribution model will ease the burden on marketers who have long struggled with non-functional pipelines and high inland transport costs.
Economic experts echoed the sentiment. Professor Ken Ife noted that the move would drive down fuel prices and benefit the broader economy. Bismarck Rewane, CEO of Financial Derivatives Company, said the initiative addresses longstanding inefficiencies in the downstream sector and reduces reliance on profit-driven middlemen.
“Dangote is eliminating the need for bridging costs and ensuring nationwide fuel delivery at more stable prices,” Rewane noted. “By directly handling distribution and offering credit to retailers, the group is redefining how the downstream sector operates.”
With a bold investment in infrastructure, logistics, and cleaner energy vehicles, Dangote’s initiative is being hailed as a pivotal shift in Nigeria’s energy landscape — one that promises to cut costs, boost small businesses, and stabilize fuel supply across the country.
