The Dangote Petroleum Refinery has announced plans to absorb over N1.07 trillion annually as part of its initiative to distribute fuel directly to marketers across Nigeria. In a statement on Sunday, the refinery revealed it has invested over N720 billion to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide fuel distribution, a move projected to save Nigerians more than N1.7 trillion each year.
“This bold step will see the privately-owned refinery absorb over N1.07 trillion annually in fuel distribution costs,” the company stated, adding that the initiative will benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by reducing energy costs and improving profitability.
Set to commence on August 15, the initiative aims to eliminate transportation costs for fuel marketers and large-scale consumers, helping to ease pump prices and inflationary pressures. The refinery plans to deliver petrol and diesel directly to filling stations, industrial facilities, and other high-volume consumers nationwide.
The refinery aims to meet Nigeria’s daily demand of 65 million litres of refined products, including 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel. With average logistics costs estimated at N45 per litre, the refinery’s direct distribution model is designed to absorb the expenses previously borne by marketers.
“The Dangote Group is investing N720 billion in acquiring 4,000 CNG-powered trucks and establishing nationwide CNG ‘mother and daughter’ stations, among other infrastructure, to support the free distribution initiative,” the statement added.
The programme is part of Dangote’s broader commitment to removing logistics bottlenecks, promoting energy efficiency, supporting environmental sustainability, and driving economic growth in Nigeria.
The company noted that lower distribution costs will reduce production expenses for businesses, support inflation management, and help stimulate the economy. Additionally, the initiative is expected to revive dormant filling stations and create over 15,000 direct jobs across the logistics chain, including drivers, station managers, and CNG station attendants.
The refinery also highlighted that the programme would help curb cross-border smuggling of petroleum products while advancing a cleaner and more efficient distribution system in Nigeria.
