…To Lift 42 Million MSMEs
…Presidency, IPMAN, Experts Hail Bold Move
Dangote Petroleum Refinery has announced a landmark investment of over ₦720 billion in the deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide distribution of petroleum products. This initiative is projected to save Nigerians more than ₦1.7 trillion annually in logistics and fuel distribution costs.
The privately-owned refinery is set to absorb over ₦1.07 trillion each year in fuel distribution expenses, drastically reducing operational costs for over 42 million Micro, Small, and Medium Enterprises (MSMEs). The move is expected to lower pump prices, reduce inflation, and increase profitability for businesses across Nigeria.
Starting August 15, Dangote will begin direct delivery of petrol and diesel to filling stations, industrial sites, and other high-volume consumers. This eliminates intermediaries and transportation bottlenecks, a move that experts say could transform the energy supply chain.
According to the refinery, its production capacity will meet Nigeria’s daily consumption of 65 million litres of refined petroleum products — including 45 million litres of PMS, 15 million litres of diesel, and 5 million litres of aviation fuel.
With logistics costs averaging ₦45 per litre, the cost-saving impact of free distribution is estimated at ₦1.07 trillion annually. The investment includes not only the CNG trucks but also a network of nationwide ‘mother and daughter’ CNG stations and related infrastructure.
A Strategic Shift for Nigeria’s Economy
Dangote Group’s intervention aligns with its broader commitment to:
- Eliminate logistics inefficiencies
- Promote energy sustainability
- Support MSME growth
- Revive dormant filling stations and stimulate job creation
The initiative is expected to create over 15,000 direct jobs within the logistics chain — including drivers, station managers, and CNG station attendants.
Additionally, the direct-to-retail delivery system is set to curb petroleum product smuggling, ensuring a more secure and environmentally friendly distribution framework.
Presidential and Industry Endorsements
The Presidency has praised the initiative as a pivotal step in transitioning Nigeria toward gas-powered transportation.
Tosin Coker, Commercial Coordinator of the Presidential CNG Initiative (PCNGI), called it a “milestone achievement,” highlighting the scale and strategic value of the move.
“It signals that CNG is no longer a distant goal but a practical, current solution,” he stated.
Similarly, the Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the development. According to Chinedu Ukadike, National Publicity Secretary, the initiative addresses a long-standing challenge in Nigeria’s downstream sector:
“For years, we’ve relied on costly transport from coastal depots due to non-functional pipelines. Dangote’s direct delivery will ease this burden immensely.”
Expert Reactions
Prof. Ken Ife, a development economist, noted that the initiative would help bring down the price of PMS, with ripple effects on other sectors.
Bismarck Rewane, CEO of Financial Derivatives Company, dismissed monopoly fears, instead applauding the elimination of middlemen and the provision of credit facilities at the retail level.
“Middlemen extract margins without adding value. Dangote is investing, distributing, and offering credit — a game-changer,” Rewane remarked.
Kelvin Emmanuel, energy expert and co-founder of Dairy Hills, described the absorption of logistics costs as a turning point that would allow citizens to truly benefit from local refining.
Ibukun Phillips, an energy analyst, called the move revolutionary, especially in its potential to improve access and affordability in rural communities:
“Rural consumers stand to benefit greatly. This could revive abandoned filling stations and ensure fairer, more equitable distribution.”
