The Dangote Petroleum Refinery has announced that its N720 billion investment in a landmark nationwide petroleum products distribution plan will save Nigerians more than N1.7 trillion annually.
In a statement issued on Sunday, June 30, 2025, the Dangote Group confirmed that the refinery has acquired 4,000 Compressed Natural Gas (CNG)-powered trucks to deliver fuel products directly across the country, eliminating huge logistics costs for fuel marketers and large-scale consumers.
According to the company, this initiative will absorb over N1.07 trillion each year in fuel distribution costs, reduce pump prices, ease inflationary pressures, and boost profits for more than 42 million Micro, Small and Medium Enterprises (MSMEs).
“Dangote Petroleum Refinery has invested over N720 billion to deploy 4,000 CNG-powered trucks nationwide. This bold move is expected to save Nigerians over N1.7 trillion annually by absorbing huge logistics costs,” the statement read.
From August 15, 2025, Dangote will start delivering petrol and diesel directly to filling stations, factories, telecom facilities, and other bulk consumers, meeting Nigeria’s daily demand of 65 million litres of refined products.
Presidential and industry endorsements poured in after the announcement. The Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Tosin Coker, called the plan “a milestone achievement in our efforts to accelerate gas-powered transport adoption.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) hailed the move as timely. IPMAN National Publicity Secretary Chinedu Ukadike said: “Dangote’s intervention lifts a huge burden off the shoulders of independent marketers who have struggled for years with poor pipeline infrastructure and high haulage costs.”
Economic experts also welcomed the plan. Development Economist Prof. Ken Ife described it as a “major relief” that would help stabilise pump prices. Bismarck Rewane, CEO of Financial Derivatives Company, said the initiative would remove middlemen’s margins and bring down distribution costs.
“Dangote’s distribution plan bypasses the parasitic role of middlemen. It guarantees uniform prices nationwide by removing bridging costs and cuts logistics expenses through CNG-powered trucks,” Rewane explained.
The refinery said the plan includes establishing nationwide CNG mother and daughter stations, and free logistics support for registered petrol dealers, manufacturers, aviation operators, and other high-volume consumers.
The Dangote Group said the plan would help combat cross-border fuel smuggling, revive dormant filling stations, and create over 15,000 direct jobs in the logistics chain, including new roles for drivers and station staff.
Industry watchers note that the move is part of Dangote’s broader commitment to lowering production costs, supporting Nigeria’s energy transition, and fostering economic stability.
The 9am News report confirms that the initiative will roll out alongside the refinery’s plans to start nationwide distribution of PMS and diesel from August 15, 2025.
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