Nigeria’s downstream petroleum sector is bracing for a major shake-up following the announcement by Dangote Petroleum Refinery that it will begin direct, free distribution of Premium Motor Spirit (PMS) and diesel across the country, starting August 15, 2025.
Unveiled on Sunday, June 15, the plan includes the deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers to deliver fuel directly to petrol stations, manufacturers, aviation companies, telecom operators, and other large-scale consumers.
This move bypasses traditional fuel depots and intermediaries—aiming to streamline supply, reduce distribution costs, and eliminate inefficiencies in the current system.
In a bold move to support large buyers, the refinery is also introducing a credit incentive scheme. Customers who purchase 500,000 litres or more will be eligible for an additional 500,000 litres on a two-week credit, provided they secure a bank guarantee.
The initiative is specifically designed to reduce operational expenses for high-consumption sectors such as manufacturing and telecommunications.
This dual-pronged strategy—free nationwide distribution and a robust credit facility—positions Dangote Refinery to radically reshape Nigeria’s fuel distribution landscape, increase supply chain efficiency, and offer cost savings to major fuel users.
The move reinforces Dangote’s commitment to revolutionizing Nigeria’s energy infrastructure while supporting industrial productivity and energy affordability.
