Nigerians can expect some relief at the pumps starting today as Dangote Petroleum Refinery rolls out its fleet of 4,000 Compressed Natural Gas (CNG)-powered tankers for nationwide distribution of petrol and diesel. The move aims to reduce the financial strain on commuters, vehicle owners, and large consumers caused by rising transportation and fuel costs.
The refinery, the largest single-train facility in the world located in Lekki, Lagos, began operations in January 2024. By delivering fuel directly to consumers and businesses, Dangote Refinery seeks to bypass intermediaries, cutting logistics costs and improving supply efficiency.
Under the new system, fuel will be delivered to marketers, manufacturers, aviation firms, telecommunications companies, and other major users. Industry experts estimate that this initiative could save Nigerians over N1.7 trillion annually while boosting the profitability of around 42 million micro, small, and medium enterprises.
The refinery’s management says the project also supports environmental sustainability, promotes energy efficiency, and enhances the nation’s economic growth. Dangote Industries Vice-President of Oil and Gas, Devakumar Edwin, and other officials received the first batch of tankers at the refinery in Ibeju-Lekki. Over the next six weeks, 60 more shipments of trucks are expected to arrive in Nigeria.
Anthony Chiejina, Group Chief of Branding and Communication at Dangote, described the initiative as a “groundbreaking step” for Nigeria’s downstream petroleum sector. “This approach ensures operational efficiency while expanding our fleet. We are confident it will reduce distribution costs and improve fuel availability nationwide,” he said.
The project is also expected to create over 15,000 jobs along the logistics value chain, including drivers, station managers, and attendants at CNG stations.
However, the plan has drawn criticism from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Products Retail Outlet Owners Association, who warn that bypassing traditional distribution channels could disrupt supply chains and threaten the survival of independent marketers.
NOGASA President Bennett Korie urged Dangote Refinery to engage in dialogue with stakeholders before fully implementing the plan. He cautioned that attempting to combine refining, distribution, and retail in a single operation could mirror past challenges experienced by the Nigerian National Petroleum Company Limited (NNPCL).
Dangote Group officials, however, dismissed these concerns as “anti-Nigeria,” emphasizing that the initiative aims to remove logistics costs, not monopolize the market. They insisted the fuel market is large enough for all players and that the refinery’s goal is to make fuel more affordable for Nigerians.
Industry observers note that if successfully implemented, the rollout of CNG-powered tankers could revolutionize fuel distribution in Nigeria, lower the cost of goods and services, and enhance energy security across the country.
