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₦720bn Power Move: Dangote’s CNG Trucks Set to Break Fuel Dependency, Save Nigerians Big
Dangote Petroleum Refinery has committed more than ₦720 billion to a groundbreaking plan to deploy 4,000 CNG-powered trucks for nationwide fuel distribution — a move projected to save Nigerians over ₦1.7 trillion every year.....KINDLY READ THE FULL STORY HERE▶
Dangote’s latest initiative is set to absorb over ₦1.07 trillion annually in fuel distribution costs, marking a major private-sector intervention in Nigeria’s energy sector. The programme is also expected to deliver huge relief to more than 42 million Micro, Small, and Medium Enterprises (MSMEs) by cutting energy expenses and boosting profitability.
By eliminating transportation costs for fuel marketers and large-scale consumers, the project aims to ease pump prices and help curb inflation. Starting August 15, Dangote will begin direct delivery of petrol and diesel to filling stations, factories, and other major consumers.
In a statement, the Refinery said it targets meeting Nigeria’s daily fuel demand—estimated at 65 million litres—including 45 million litres of petrol (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel. With logistics costs averaging ₦45 per litre, the refinery will shoulder over ₦1.07 trillion annually to deliver products at no charge.
To support this bold move, the Dangote Group is investing ₦720 billion in acquiring 4,000 Compressed Natural Gas (CNG)-powered trucks and establishing a nationwide network of CNG “mother and daughter” refueling stations, among other infrastructure.
The company noted that this initiative aligns with its broader mission to resolve logistics constraints, improve energy efficiency, champion environmental sustainability, and drive national economic growth. Lower fuel transport costs, it added, will reduce production expenses, ease inflation, and help expand the economy.
The refinery also highlighted the project’s potential to reduce cross-border smuggling and ensure a cleaner, more efficient fuel distribution system.
The Presidency hailed the programme as a milestone in the federal government’s efforts to advance gas-powered transportation in Nigeria.
Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), commended the move, describing it as a strategic leap toward a gas-powered economy.
“Dangote Group’s procurement of 4,000 CNG trucks is not just ambitious—it’s transformational,” said Coker. “It sends a strong signal that CNG is no longer a future dream but a present-day, practical solution to high energy costs, emissions, and supply chain inefficiencies.”
The Presidential Compressed Natural Gas Initiative (PCNGI) has described Dangote’s CNG-powered transport scheme as a landmark development in the federal government’s drive to fast-track gas-based mobility across the country.
Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) also welcomed the move, calling it a timely intervention that addresses longstanding issues in the downstream sector. According to IPMAN’s National Publicity Secretary, Chinedu Ukadike, the new delivery model will ease the financial and logistical strain on independent marketers by supplying cheaper fuel directly to their filling stations.
Development economist and policy analyst, Professor Ken Ife, praised the initiative’s potential to significantly reduce the price of Premium Motor Spirit (PMS), thereby delivering broad economic benefits to ordinary Nigerians.
Bismarck Rewane, CEO of Financial Derivatives Company, pushed back against concerns that Dangote’s refinery might create a monopoly, noting that inefficiencies in the fuel distribution chain have persisted for decades. He emphasized that the plan would effectively eliminate exploitative middlemen who inflate costs.
Kelvin Emmanuel, energy expert and co-founder of Dairy Hills, described Dangote’s decision to cover the cost of logistics as a transformative step, one that finally enables Nigerians to enjoy the full benefits of local refining.
Echoing this sentiment, energy analyst Ibukun Phillips hailed the strategy as “revolutionary,” suggesting it has the potential to overhaul Nigeria’s energy landscape. “This move could drastically improve affordability and fuel access in underserved rural areas,” she said.
Phillips added that rural consumers—often forced to pay more despite earning less—would see a meaningful boost. The scheme, she noted, could also revive dormant filling stations and help ensure more equitable fuel distribution nationwide.
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