Dangote Refinery Begins Receipt of 4,000 CNG Trucks for Nationwide Fuel Delivery

The Dangote Refinery has started receiving the first batch of its 4,000 Compressed Natural Gas (CNG) trucks, marking the launch of a nationwide petroleum product distribution programme set to begin this month.

Part of a ₦720 billion investment unveiled in June, the initiative aims to cut logistics costs, boost supply efficiency, and deliver direct economic relief to Nigerians. The refinery estimates the project will save the country more than ₦1.7 trillion annually, while benefiting over 42 million Micro, Small and Medium Enterprises (MSMEs) through lower energy costs and improved profitability.

From August 15, Dangote will begin direct delivery of petrol, diesel, and aviation fuel to filling stations, industrial facilities, and other bulk consumers. The refinery’s plan targets Nigeria’s daily demand of 65 million litres—comprising 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel. With average logistics costs pegged at ₦45 per litre, the company will absorb over ₦1.07 trillion in annual distribution expenses.

The programme includes a network of nationwide CNG ‘mother and daughter’ stations to support free fuel delivery. According to Dangote, the move will help lower pump prices, ease inflationary pressures, reduce production costs, create over 15,000 direct jobs, and revive dormant filling stations. It will also help curb cross-border fuel smuggling and promote a more sustainable, environmentally friendly distribution system.

Government and industry stakeholders have hailed the development. The Presidency called it a milestone in its gas-powered transport agenda, while Tosin Coker of the Presidential Compressed Natural Gas Initiative described it as “a strong vote of confidence in Nigeria’s gas-fueled future.”

Independent Petroleum Marketers Association of Nigeria (IPMAN) National Publicity Secretary, Chinedu Ukadike, said: “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. Dangote’s intervention lifts a huge burden off the shoulders of independent marketers.”

Economist and policy analyst Professor Ken Ife predicted the scheme would drive down fuel prices nationwide. Bismarck Rewane, CEO of Financial Derivatives Company, argued it would eliminate “parasitic” middlemen by enabling direct supply at uniform prices through CNG-powered trucks and even offering credit facilities to retailers.

Energy expert Kelvin Emmanuel called the decision to absorb logistics costs “a turning point” for Nigeria’s refining benefits, while analyst Ibukun Phillips labelled it “revolutionary,” noting rural communities—often paying more despite lower incomes—would gain equitable access to fuel and potentially see long-abandoned stations revived.