Dangote Petroleum Refinery has invested over N720 billion to im-plement its landmark initiative of deploying 4,000 Compressed Natu-ral Gas (CNG)-powered trucks for nationwide distribution of petro-leum products, which is expected to save Nigerians over N1.7 trillion annually.
This bold step will see the privately-owned refinery absorb over N1.07 trillion annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhanc-ing profitability.
The initiative, which elimi-nates transportation costs for fuel marketers and large-scale con-sumers, is expected to help reduce pump prices and inflation. From 15 August, Dangote will begin the direct delivery of petrol and die-sel to filling stations, industrial facilities, and other high-volume consumers.
According to a statement from the refinery, it aims to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products. This includes 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
With the average logistics cost estimated at N45 per litre, the refin-ery will cover over N1.07trn annu-ally in free distribution expenses.
Dangote Group is investing N720 billion in the acquisition of 4,000 CNG-powered trucks as well as the establishment of nation-wide CNG ‘mother and daughter’ stations, among other infrastruc-ture to implement the free distri-bution initiative.
This strategic programme forms part of Dangote’s broader commitment to eliminating logis-tics bottlenecks, enhancing energy efficiency, promoting environmen-tal sustainability, and supporting Nigeria’s economic development. The company noted that lower fuel distribution costs will help reduce production costs, ease inflationary pressures, and stimulate econom-ic growth.
The initiative is also expected to resuscitate dormant filling sta-tions, fostering job creation in the process. Over 15,000 direct jobs are projected to be created across the logistics chain, including drivers, station managers, and attendants at the CNG stations.
The refinery also emphasised that this programme would help curb cross-border smuggling of petroleum products and support a more efficient and environ-mentally friendly distribution system.
Meanwhile, the presidency has described the initiative as a pivot-al moment in the Federal Gov-ernment’s push to mainstream gas-powered transportation.
Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Tosin Coker, praised the move as a strong vote of confidence in Ni-geria’s gas-fueled future.