The Dangote Petroleum Refinery announced today that its newly launched nationwide distribution scheme for refined petroleum products is poised to save Nigerians an estimated N1.7 trillion annually. This significant projection comes as the refinery ramps up efforts to optimize product delivery across the country.
The refinery, owned by Africa’s richest man, Aliko Dangote, has reportedly invested over N720 billion in the initiative, which includes the deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks for distribution. This strategic move aims to eliminate significant logistics costs that have historically impacted fuel prices for consumers.
According to a statement from the refinery, the company will absorb an estimated N1.07 trillion annually in fuel distribution costs. By directly delivering petrol and diesel to filling stations, industrial facilities, and other high-volume consumers, the Dangote Refinery anticipates a substantial reduction in pump prices and, consequently, a easing of inflationary pressures.
The initiative is also expected to benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) across Nigeria by lowering energy costs and improving profitability. The refinery projects to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products, comprising 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
With direct deliveries set to commence on August 15, 2025, the Dangote Group is also establishing a network of CNG “mother and daughter” stations nationwide to support its new logistics infrastructure. This move is lauded by experts as a “game-changer” for Nigeria’s downstream petroleum sector, promising to improve efficiency, ensure consistent product availability, and create job opportunities within the logistics chain.
