Dangote’s fuel distribution will benefit 42 million MSMEs and save Nigerians N1.7 trillion yearly.
Dangote Petroleum Refinery has revealed that its N720 billion investment in its landmark nationwide petroleum products distribution initiative will save Nigerians over N1.7 trillion annually.
This disclosure is contained in a statement issued by the Dangote Group on Sunday, June 30, 2025, where it provided an update on the refinery’s investment in 4,000 Compressed Natural Gas (CNG) powered trucks for the scheme.
Dangote refinery, in its statement, pointed out that the energy firm will absorb over N1.07 trillion annually in fuel distribution costs.
According to the statement, this move is anticipated to contribute to a decrease in inflation and pump prices by removing transportation expenses for fuel marketers and large users.
Benefiting 42 million MSMEs
By lowering energy costs and increasing profitability, the program is also expected to greatly benefit more than 42 million Micro, Small, and Medium-Sized Enterprises (MSMEs), according to the refinery.
According to the statement, Dangote Petroleum Refinery has spent more than N720 billion to carry out its historic plan to distribute petroleum products across the country using 4,000 trucks powered by compressed natural gas (CNG), which is anticipated to save Nigerians more than N1.7 trillion a year.
” With this audacious move, the privately held refinery would cover more than N1.07 trillion in fuel distribution expenses yearly. Through lower energy costs and increased profitability, the program is also expected to have a major positive impact on more than 42 million Micro, Small, and Medium-Sized Enterprises (MSMEs).
Pump prices and inflation are anticipated to decline as a result of the effort, which removes transportation expenses for fuel marketers and large users. Dangote will start delivering gasoline and diesel directly to gas stations, factories, and other large customers on August 15.
The refinery stated in a press release that it aims to supply 65 million liters of refined petroleum products daily to Nigeria. 45 million liters of Premium Motor Spirit (PMS) are among them.
The refinery will cover more than N1.07 trillion in free distribution expenses each year, with an average logistical cost of N45 per liter.
Experts’ praise system and the presidency
In a statement, the Dangote Group claimed that the president praised the plan and called it a turning point in the Federal Government’s drive to increase the use of gas-powered vehicles. According to the corporation, Tosin Coker, the Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), hailed the action as a resounding endorsement of Nigeria’s gas-powered future.
“The acquisition of 4,000 CNG trucks by the Dangote Group is not only impressive in scale but also highly strategic,” he was quoted as adding. It tells the market that CNG is a viable, modern answer to supply chain issues, high energy costs, and emissions rather than a far-off possibility. In our attempts to hasten the adoption of gas-powered transportation, PCNGI views this as a significant accomplishment.
The business claims that the Independent Petroleum Marketers Association of Nigeria (IPMAN) also applauded the move, describing it as a prompt response to persistent issues in the downstream industry. By supplying more reasonably priced fuel straight to filling stations, the new model will drastically lessen the logistical responsibilities for independent marketers, according to Chinedu Ukadike, National Publicity Secretary for IPMAN.
What you should know
Dangote Petroleum Refinery had on June 15, 2025, announced plans to begin the nationwide distribution of PMS and diesel starting August 15, 2025, marking a significant step towards reshaping Nigeria’s downstream petroleum market.
- As part of the initiative, the company has also deployed 4,000 brand-new Compressed Natural Gas (CNG)-powered trucks to support nationwide distribution, with free logistics support will be provided to registered petrol dealers, marketers, manufacturers, telecom firms, aviation operators, and other consumers.
- Dangote Group is investing N720 billion in the acquisition of these trucks as well as the establishment of nationwide CNG ‘mother and daughter’ stations, among other infrastructure to implement the free distribution initiative.
- This strategic programme forms part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental 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 economic growth.
The initiative is also expected to resuscitate dormant filling stations, 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 environmentally friendly distribution system.
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