Dangote’s N720b Investment In CNG Trucks To Save Nigerians N1.7tn Annually

Dangote Petroleum Refinery has committed over ₦720 billion to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks across Nigeria for the nationwide distribution of refined petroleum products—a strategic initiative projected to save Nigerians over ₦1.7 trillion annually.

This was disclosed in a statement issued on Sunday by the Head of Media Relations, Branding & Communications, Dangote Industries Limited, Mr. Esan Sunday.

Sunday described the investment as a bold step that will see the privately-owned refinery absorb over ₦1.07 trillion yearly in logistics costs for the distribution of petrol, diesel, and aviation fuel across the country.

He added that the programme will significantly benefit more than 42 million Micro, Small and Medium Enterprises (MSMEs) by lowering energy costs and boosting profitability.

“With average logistics costs estimated at ₦45 per litre, the refinery will cover over ₦1.07 trillion annually in free distribution expenses,” the statement said.

From August 15, Dangote Petroleum Refinery will begin direct delivery of petroleum products to filling stations, industrial facilities, and high-volume consumers to help meet Nigeria’s estimated daily consumption of 65 million litres—comprising 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel.

According to the statement, the ₦720 billion investment covers the acquisition of the 4,000 CNG-powered trucks, as well as the development of CNG “mother and daughter” stations across the country.

“This initiative aims to eliminate logistics bottlenecks, reduce fuel pump prices, and curb inflationary pressures. It will also promote environmental sustainability and help stimulate economic growth,” Sunday stated.

The programme is also expected to create over 15,000 direct jobs, including truck drivers, station managers, and attendants at the CNG stations, while reviving dormant filling stations across the country.

The refinery noted that the initiative would also help address the persistent problem of cross-border smuggling of petroleum products by creating a more efficient and traceable distribution system.

The Presidency welcomed the initiative, describing it as a pivotal moment in the Federal Government’s efforts to mainstream gas-powered transportation.

Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Tosin Coker, hailed Dangote’s move as a “milestone achievement.”

“Dangote Group’s acquisition of 4,000 CNG trucks is not only impressive in scale but also highly strategic. It signals to the market that CNG is no longer a distant prospect but a current, practical solution to high energy costs, emissions, and supply chain challenges,” Coker said.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) also applauded the move. Its National Publicity Secretary, Chinedu Ukadike, noted that the new model will ease logistical burdens for independent marketers by delivering fuel directly to stations at lower cost.

“Our pipelines have been non-functional for years. We’ve had to rely on expensive transportation from coastal depots. Dangote’s intervention lifts a huge burden off the shoulders of independent marketers,” Ukadike stated.

Renowned development economist and policy analyst, Prof. Ken Ife, said the scheme would lower pump prices and deliver wide-reaching benefits to Nigerians.

Similarly, Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company, dismissed concerns about monopoly, noting that the move would eliminate inefficiencies in the downstream sector and reduce the parasitic influence of middlemen.

“What Dangote is doing achieves two key objectives: delivering petroleum products at a uniform national price by eliminating bridging costs, and drastically cutting logistics expenses through the use of CNG trucks. Middlemen who extract margins without adding value are being bypassed,” Rewane said.

Energy expert and co-founder of Dairy Hills, Kelvin Emmanuel, described the refinery’s decision to absorb logistics costs as a turning point that could finally allow Nigerians to enjoy the full benefits of local refining.

Energy analyst Ibukun Phillips called the move “revolutionary,” saying it could reshape Nigeria’s energy sector and make fuel more accessible, especially in underserved rural areas.

“Rural consumers, who often pay more despite earning less, stand to gain immensely. This could also revive abandoned filling stations and ensure more equitable distribution,” she said.