Dangote’s N720bn Fuel Transport Initiative to Save Nigeria N1.7trn, Boost MSMEs

Dangote Petroleum Refinery has announced that its N720 billion investment in a national fuel distribution system using 4,000 Compressed Natural Gas (CNG)-powered trucks will save the Nigerian economy over N1.7 trillion annually. This major initiative, unveiled on Sunday, June 30, 2025, by the Dangote Group, is set to reshape the downstream petroleum market and drive significant benefits for millions of businesses and consumers across the country.

According to the company, this investment will eliminate transportation costs for fuel marketers and large-scale consumers, a move expected to ease pump prices and inflation. The Dangote refinery will absorb over N1.07 trillion each year in fuel distribution costs. The trucks, which begin operations on August 15, will deliver petrol and diesel directly to filling stations, factories, and high-volume users nationwide.

Over 42 million Micro, Small and Medium Enterprises (MSMEs) stand to benefit from the project through reduced energy costs and increased profitability. The initiative is designed not only to improve fuel distribution efficiency but also to lower production costs, ease inflationary pressures, and create jobs.

The Presidential Compressed Natural Gas Initiative (PCNGI) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) both hailed the development. PCNGI’s Commercial Coordinator praised it as a “milestone achievement” in the country’s shift to gas-powered transport, while IPMAN described it as a long-overdue solution to the nation’s costly and broken fuel logistics network. IPMAN noted that most of Nigeria’s pipelines have remained non-functional, forcing marketers to rely on expensive transport from coastal depots.

Development Economist Professor Ken Ife said the move would drive down pump prices nationwide, while Bismarck Rewane, CEO of Financial Derivatives Company, dismissed monopoly concerns. Rewane argued that the system would eliminate costly middlemen by ensuring direct supply to end users and offering credit support to retailers. He said the use of CNG trucks would allow Dangote to deliver products across Nigeria at a uniform price, further promoting price stability.

The Dangote Group’s broader plan includes the creation of CNG ‘mother and daughter’ stations and other supporting infrastructure to ensure the success of the programme. The company said it will provide free logistics support to registered petrol dealers, manufacturers, telecom operators, aviation firms, and other key consumers.

Beyond economic benefits, the initiative is expected to support Nigeria’s energy transition goals by promoting cleaner CNG usage and curbing cross-border fuel smuggling. It is also projected to create over 15,000 direct jobs in the logistics and distribution chain, including truck drivers, filling station managers, and CNG station attendants.

With nationwide distribution of PMS and diesel set to begin on August 15, Dangote Petroleum Refinery’s intervention is being widely seen as a game changer in Nigeria’s fuel supply chain and a strategic step toward economic sustainability.