Dangote Petroleum Refinery has revealed that its N720 billion funding in its landmark nationwide petroleum merchandise distribution initiative will save Nigerians over N1.7 trillion yearly.
This disclosure is contained in an announcement issued by the Dangote Group on Sunday, June 30, 2025, the place it supplied an replace on the refinery’s funding in 4,000 Compressed Pure Fuel (CNG) powered vehicles for the scheme.
Dangote refinery, in its assertion, identified that the vitality agency will take up over N1.07 trillion yearly in gas distribution prices.
It said that this initiative, which eliminates transportation prices for gas entrepreneurs and large-scale customers, is predicted to assist scale back pump costs and inflation.
The refinery said that the initiative can also be poised to considerably profit over 42 million Micro, Small and Medium Enterprises (MSMEs) by decreasing vitality prices and enhancing profitability.
The assertion reads, ‘’Dangote Petroleum Refinery has invested over N720 billion to implement its landmark initiative of deploying 4,000 Compressed Pure Fuel (CNG)-powered vehicles for the nationwide distribution of petroleum merchandise, which is predicted to save lots of Nigerians over N1.7 trillion yearly.
‘’This daring step will see the privately-owned refinery take up over N1.07 trillion yearly in gas distribution prices. The initiative can also be poised to considerably profit over 42 million Micro, Small and Medium Enterprises (MSMEs) by decreasing vitality prices and enhancing profitability.
‘’The initiative, which eliminates transportation prices for gas entrepreneurs and large-scale customers, is predicted to assist scale back pump costs and inflation. From 15 August, Dangote will start the direct supply of petrol and diesel to filling stations, industrial services, and different high-volume customers.’’
In line with an announcement from the refinery, it goals to satisfy Nigeria’s each day consumption of 65 million litres of refined petroleum merchandise. This contains 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation gas.
With the common logistics price estimated at N45 per litre, the refinery will cowl over N1.07 trillion yearly in free distribution bills.
Dangote Group, in its assertion, stated the presidency recommended the scheme, describing the initiative as a pivotal second within the Federal Authorities’s push to mainstream gas-powered transportation.
The corporate stated the Industrial Coordinator of the Presidential Compressed Pure Fuel Initiative (PCNGI), Tosin Coker, praised the transfer as a robust vote of confidence in Nigeria’s gas-fueled future.
He was quoted as saying, “Dangote Group’s acquisition of 4,000 CNG vehicles isn’t solely spectacular in scale but in addition extremely strategic,” he stated. “It indicators to the market that CNG is now not a distant prospect however a present, sensible answer to excessive vitality prices, emissions, and provide chain challenges. PCNGI regards this as a milestone achievement in our efforts to speed up gas-powered transport adoption.”
In line with the corporate, the Impartial Petroleum Entrepreneurs Affiliation of Nigeria (IPMAN) additionally recommended the event, calling it a well timed decision to longstanding challenges within the downstream sector.
IPMAN’s Nationwide Publicity Secretary, Chinedu Ukadike, said that the brand new mannequin would considerably scale back logistical burdens for unbiased entrepreneurs by delivering extra inexpensive gas on to filling stations.
Ukadike stated, “Our pipelines have been non-functional for years, but nothing has been performed to revive the infrastructure linking the nation’s 21 depots. We’ve needed to depend on costly transport from coastal depots. Dangote’s intervention lifts an enormous burden off the shoulders of unbiased entrepreneurs.”
Improvement Economist and Coverage Analyst, Professor Ken Ife, stated the initiative would drive down the worth of PMS and yield widespread advantages for Nigerians.
Additionally, quoted within the assertion, the CEO of {Financial} Derivatives Firm, Bismarck Rewane, dismissed considerations in regards to the refinery turning into a monopoly, arguing that inefficiencies within the sector have been systemic and long-standing. He added that the scheme would assist curb the parasitic function historically performed by middlemen.
Rewane stated, “What Dangote is doing achieves two key aims: delivering merchandise throughout all the nation at a uniform worth by eliminating bridging prices, and considerably decreasing logistics bills via the usage of CNG-powered vehicles to achieve each nook of the nation.
“In {economic} phrases, middlemen who sometimes don’t make investments are sometimes considered as parasitic, extracting margins merely for distributing items. Dangote is bypassing this layer by straight dealing with distribution and, notably, offering credit score services to the retail finish of the enterprise.’’
Dangote Petroleum Refinery had on June 15, 2025, introduced plans to start the nationwide distribution of PMS and diesel beginning August 15, 2025, marking a big step in direction of reshaping Nigeria’s downstream petroleum market.
The initiative can also be anticipated to resuscitate dormant filling stations, fostering job creation within the course of. Over 15,000 direct jobs are projected to be created throughout the logistics chain, together with drivers, station managers, and attendants on the CNG stations.
The refinery additionally emphasised that this programme would assist curb cross-border smuggling of petroleum merchandise and assist a extra environment friendly and environmentally pleasant distribution system.
