Dangote Petroleum Refinery is set to commence its direct fuel distribution initiative in South-West Nigeria following the arrival of 1,000 Compressed Natural Gas (CNG)-powered trucks, a development expected to transform fuel logistics in the region.
The refinery’s ambitious plan to deploy 4,000 CNG trucks nationwide aims to streamline fuel supply, reduce costs, and create thousands of jobs across the logistics chain.
According to sources within the Lekki-based $20 billion refinery, more trucks are scheduled to arrive in batches, with all 4,000 expected by the end of September.
“We have received 1,000 trucks as of this weekend, and more are still coming. We believe all will be delivered by the end of September,” a company insider told our correspondent.
The refinery had initially planned to launch the scheme on August 15, 2025, but logistical challenges in China delayed delivery of the trucks.
As of last week, 600 trucks had arrived, with the remaining batches pending shipment due to insufficient shipping capacity.
Despite the delay, the refinery confirmed it would commence fuel distribution using the available trucks, starting in Lagos and other South-West states.
A senior Dangote Group executive explained, “The logistics issue in China was unexpected.
However, we are committed to starting the scheme with the trucks we have received and gradually expanding as more trucks arrive.
By mid-September, the distribution network will cover major parts of the country.”
The refinery has invested over N720 billion in acquiring the 4,000 CNG-powered trucks, designed to deliver petroleum products directly to filling stations, bulk consumers, and telecommunication companies.
This initiative is projected to save Nigerians more than N1.7 trillion annually in fuel distribution costs while improving efficiency and reducing environmental impact.
“This strategic programme is part of Dangote’s broader commitment to eliminating logistics bottlenecks, promoting environmental sustainability, and supporting Nigeria’s economic growth,” the refinery stated.
The plan is expected to create over 15,000 direct jobs for drivers, station managers, and attendants at CNG stations, while also revitalising dormant filling stations.
The direct distribution model has, however, raised concerns among tanker drivers and members of the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), who fear that bypassing existing channels may disrupt the supply chain and affect livelihoods.
Discussions between Dangote and stakeholders have reportedly addressed these concerns, paving the way for a smooth rollout.
Industry analysts suggest that Dangote’s scheme will not only cut down fuel logistics costs but also curb cross-border smuggling of petroleum products, strengthen market efficiency, and enhance the competitiveness of Nigerian industries.
By supplying fuel directly, the refinery intends to reduce production expenses for businesses, improve profitability for micro, small, and medium enterprises, and alleviate inflationary pressures.
Mr. Anthony Chiejina, Group Chief of Branding and Communication at Dangote Industries Limited, confirmed that over 60 shiploads of trucks are scheduled to arrive in six weeks to complete the nationwide rollout.
Once fully operational, the programme is expected to revolutionise Nigeria’s petroleum distribution network and serve as a model for other African countries seeking to enhance energy efficiency and industrial growth.
The Dangote Petroleum Refinery’s direct fuel distribution initiative represents a significant milestone in Nigeria’s energy sector, promising to deliver efficiency, cost savings, and widespread economic benefits while demonstrating the potential of private sector-led infrastructure investment.