By Ada Samson, Abuja
…Stakeholders commend move
The Dangote Refinery has begun the phased delivery of 4,000 Compressed Natural Gas (CNG) trucks as part of its preparations to launch nationwide petroleum product distribution operations.
This strategic move forms a key component of the company’s logistics programme, designed to facilitate efficient product distribution starting this month. By leveraging CNG-powered transport, the initiative aims to revolutionise Nigeria’s fuel distribution sector, significantly lowering logistics expenses while improving supply chain efficiency for customers.
In June, the refinery announced a substantial investment exceeding N720 billion to support this landmark initiative, which is projected to generate annual savings of over N1.7 trillion for Nigerians.
The programme is set to deliver widespread economic benefits, particularly for more than 42 million Micro, Small and Medium Enterprises (MSMEs), by reducing energy costs and boosting operational profitability.
Additionally, by eliminating transportation expenses for fuel marketers and bulk consumers, the initiative is expected to contribute to lower pump prices and a reduction in inflationary pressures.
From 15 August, Dangote will commence direct supply of petrol and diesel to retail fuel stations, industrial facilities, and other high-volume consumers.
According to the refinery’s official statement, the operation is designed 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 averaging N45 per litre, the refinery will absorb over N1.7 trillion annually in distribution expenses.
The N720 billion investment also encompasses the development of a nationwide network of CNG ‘mother and daughter’ stations and other critical infrastructure to enable cost-free product distribution.
This initiative underscores Dangote’s broader commitment to addressing logistical inefficiencies, enhancing energy efficiency, promoting sustainable practices, and driving Nigeria’s economic advancement.
By reducing fuel distribution costs, the refinery aims to lower production expenses, mitigate inflationary trends, and stimulate broader economic growth. Furthermore, the programme is expected to revitalise inactive filling stations, generating significant employment opportunities. An estimated 15,000 direct jobs will be created across the logistics value chain, including roles for drivers, station managers, and CNG station personnel.
The refinery has also highlighted the programme’s potential to curb cross-border fuel smuggling while establishing a more efficient and environmentally sustainable distribution framework.
The initiative has been endorsed by the Presidency as a critical step in the Federal Government’s strategy to promote gas-powered transportation.
Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), commended the move as a significant endorsement of Nigeria’s transition towards a gas-driven energy future.
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“Dangote Group’s acquisition of 4,000 CNG trucks is not only impressive in scale but also highly strategic,” he said. “It signals to the market that CNG is no longer a distant prospect but a current, practical solution to high energy costs, emissions, and supply chain challenges. PCNGI regards this as a milestone achievement in our efforts to accelerate gas-powered transport adoption.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also commended the development, calling it a timely resolution to longstanding challenges in the downstream sector.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, stated that the new model would significantly reduce logistical burdens for independent marketers by delivering more affordable fuel directly to filling stations.
“Our pipelines have been non-functional for years, yet nothing has been done to revive the infrastructure linking the country’s 21 depots. We’ve had to rely on expensive transport from coastal depots,” Ukadike said. “Dangote’s intervention lifts a huge burden off the shoulders of independent marketers.”
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