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Dangote Refinery to Cover Over N1tn in Fuel Transport Costs Annually

Dangote Petroleum Refinery has announced a new distribution strategy where it will take on over N1.07 trillion in fuel transportation expenses every year to ensure direct delivery of petroleum products across Nigeria.

As part of this plan, the company has committed N720 billion towards the purchase of 4,000 Compressed Natural Gas (CNG)-powered trucks and the setup of related infrastructure. Starting August 15, the refinery will begin supplying petrol, diesel, and aviation fuel straight to filling stations, industries, and major consumers, aiming to meet Nigeria’s daily fuel demand of 65 million litres.

This move is expected to significantly lower distribution costs, which currently average N45 per litre, and could lead to reduced pump prices and a drop in inflation. The company also noted that over 42 million small and medium-sized businesses are likely to benefit from reduced energy expenses, boosting their profitability.

In addition, the initiative is projected to create more than 15,000 direct jobs, including roles for truck drivers, fuel station staff, and CNG station operators. It also aims to tackle issues like fuel smuggling and inefficient supply chains, while promoting greener, more sustainable transportation solutions.

Dangote Group described the effort as a step toward improving Nigeria’s fuel distribution network and supporting broader economic development.