Dangote Petroleum Invests ₦720 Billion in 4,000 CNG Trucks to Cut Fuel Costs and Boost Nigeria’s Energy Efficiency
Dangote Petroleum Refinery has begun receiving 4,000 Compressed Natural Gas (CNG) trucks in phases as part of its ambitious plan to launch a nationwide petroleum product distribution network.
This logistics initiative aims to transform fuel distribution across Nigeria by lowering costs, improving efficiency, and delivering direct benefits to consumers.
In June, Dangote announced it was investing over ₦720 billion in the scheme, projecting annual savings of more than ₦1.7 trillion for Nigerians.
The program is expected to reduce energy costs and boost profitability for over 42 million Micro, Small, and Medium Enterprises (MSMEs).
Starting August 15, the refinery will deliver petrol and diesel directly to filling stations, industrial facilities, and major consumers, aiming to meet Nigeria’s daily demand of 65 million liters of refined products.
This includes 45 million liters of Premium Motor Spirit (PMS), 15 million liters of diesel, and five million liters of aviation fuel.
With current logistics costs averaging ₦45 per liter, Dangote will absorb over ₦1.07 trillion annually to provide free distribution, funded by the ₦720 billion investment. This also supports the development of a nationwide network of CNG “mother and daughter” stations and infrastructure to sustain the distribution system.
The company views the initiative as a strategic move to eliminate distribution bottlenecks, improve energy efficiency, promote environmental sustainability, and stimulate economic growth.
The program is expected to revive idle filling stations, create over 15,000 direct jobs, curb cross-border fuel smuggling, and establish an eco-friendly distribution network.
The presidency praised the program as a major boost to the federal government’s goal of expanding gas-powered transportation. Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), called the acquisition of 4,000 CNG trucks “impressive in scale and highly strategic,” marking a shift of CNG from concept to practical solution for high energy costs and emissions.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the development, citing its potential to ease transportation challenges faced by independent marketers due to inactive pipelines and depots.
Development economist Prof. Ken Ife highlighted the initiative’s potential to reduce petrol prices and deliver broad economic benefits, while Bismarck Rewane, CEO of Financial Derivatives Company, said it will weaken middlemen’s control by eliminating bridging costs and ensuring uniform pricing nationwide.
Energy experts Kelvin Emmanuel and Ibukun Phillips praised the scheme as a turning point for improving fuel access, affordability, and fair distribution—especially in rural communities.
