The Dangote Petroleum Refinery has disclosed that it will at least absorb over N1.07tn annually in its plan to distribute fuel directly to marketers nationwide, reports Business TodayNG.
According to the refinery, it invested over N720bn to implement the initiative of deploying 4,000 Compressed Natural Gas-powered trucks for the nationwide distribution of petroleum products, just as it also added that this was expected to save Nigerians over N1.7tn annually.
The company, which made this disclosure in a press statement issued Sunday, 29 June, 2025, said, “This bold step will see the privately-owned refinery absorb over N1.07tn annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises by reducing energy costs and enhancing profitability,” the company said in a statement made available to our correspondent on Sunday.
The initiative, according to the statements, aims to eliminate transportation costs for fuel marketers and large-scale consumers, is also expected to help reduce pump prices and inflation.
From 15 August, the refinery said, it would begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers.
According to the statement, the aim was to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products. “This includes 45 million litres of Premium Motor Spirit, 15 million litres of diesel, and 5 million litres of aviation fuel.
“With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07tn annually in free distribution expenses. Dangote Group is investing N720bn in the acquisition of 4,000 CNG-powered trucks as well as the establishment of nationwide CNG ‘mother and daughter’ stations, among other infrastructure to implement the free distribution initiative,” the company noted.
It added that the programme formed part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development.
The company stressed that lower fuel distribution costs would help reduce production costs, ease inflationary pressures, and stimulate economic growth.
“The initiative is also expected to resuscitate dormant filling stations, fostering job creation in the process. Over 15,000 direct jobs are projected to be created across the logistics chain, including drivers, station managers, and attendants at the CNG stations,” the statement added.
The refinery also emphasised that the programme would help curb cross-border smuggling of petroleum products and support a more efficient and environmentally friendly distribution system.
