Dangote Refinery has announced plans to absorb over ₦1.07 trillion annually as part of its fuel distribution strategy across Nigeria, aiming to eliminate transportation costs for fuel marketers and large-scale consumers.
In a statement issued on Sunday, the refinery disclosed that it has committed over ₦720 billion towards deploying 4,000 Compressed Natural Gas (CNG)-powered trucks to deliver petroleum products nationwide. This move is expected to save Nigerians over ₦1.7 trillion every year.
According to the company, the initiative is designed to lower logistics costs, reduce pump prices, and curb inflation. It will also directly benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by lowering energy costs and boosting profitability.
Beginning August 15, 2025, the refinery will commence direct deliveries of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers. The target is to meet Nigeria’s daily demand of 65 million litres of refined petroleum products — comprising 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
“With logistics costs estimated at ₦45 per litre, Dangote Refinery will cover more than ₦1.07 trillion annually in distribution expenses,” the statement noted. The investment also includes the establishment of a nationwide CNG distribution infrastructure, featuring mother and daughter stations.
This logistics overhaul is part of Dangote Group’s broader commitment to tackling supply chain bottlenecks, improving energy efficiency, promoting sustainability, and supporting Nigeria’s economic development.
The company emphasized that lower distribution costs would directly translate to reduced production costs, lower inflation, and faster economic growth. The initiative is also expected to revive inactive filling stations and create over 15,000 direct jobs across the logistics value chain — including roles for truck drivers, station managers, and attendants at the CNG stations.
In addition, the refinery stated that this effort would help reduce cross-border smuggling of petroleum products and promote an environmentally friendly fuel distribution system.
