Dangote Refinery is set to transform Nigeria’s fuel distribution landscape with the commencement of a nationwide fuel distribution program starting August 15, 2025. The refinery, operating at 85% capacity, boasts one of the world’s largest single-train facilities, enabling lower costs per barrel. By leveraging 4,000 Compressed Natural Gas (CNG) trucks, which are 40% cheaper to run than standard diesel tankers, Dangote aims to eliminate significant logistics markups.
The initiative is expected to benefit strategic sectors such as manufacturing and telecommunications, where high fuel costs have traditionally inflated operational expenses. With the elimination of logistics costs and the introduction of a credit facility, small and medium-sized enterprises (SMEs) and other businesses will benefit from increased access to fuel, leading to improved productivity and economic growth.
Dangote Refinery will provide free logistics support to registered petrol dealers, marketers, manufacturers, telecom firms, aviation operators, and other consumers. A credit facility will also be offered to large buyers, allowing them to obtain an additional 500,000 litres on credit for two weeks, subject to a bank guarantee.
The Federal Government has welcomed Dangote’s move, describing it as a landmark development and a bold vote of confidence in Nigeria’s gas-powered transportation future. The Presidential Compressed Natural Gas Initiative (PCNGI) and Dangote Group are partnering to deepen CNG technology in Nigeria, with plans to establish over 100 CNG refuelling stations nationwide.
This development marks a new chapter in Nigeria’s energy landscape, offering hope for more stable, affordable, and accessible fuel across the nation. The initiative aligns with President Tinubu’s Renewed Hope Agenda and acknowledges the Federal Government’s support through the Naira-for-Crude scheme.
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