By Anifowoshe Oladipupo
In a move set to redefine Nigeria’s energy sector, the Dangote Petroleum Refinery has unveiled a ₦720 billion investment in a national fuel distribution system powered by Compressed Natural Gas (CNG).
Launching August 15, the initiative features 4,000 CNG-powered trucks and a network of CNG “mother and daughter” stations, aimed at reducing pump prices and easing inflation.
The project is expected to absorb over ₦1.07 trillion annually in fuel transportation costs, eliminating logistics expenses currently borne by marketers and consumers, and potentially saving the economy as much as ₦1.7 trillion each year.
By replacing traditional fuel transport methods with CNG logistics, Dangote will deliver refined products directly to stations and industrial users, streamlining the supply chain and lowering the average distribution cost of ₦45 per litre.
This shift is also designed to benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs), by reducing energy costs and boosting profitability.
More than just a cost-cutting effort, the project promotes cleaner energy, supports environmental sustainability, and aims to revitalize dormant filling stations nationwide.
It is also expected to generate over 15,000 direct jobs in logistics, including drivers, station managers, and attendants.
Beyond domestic gains, the model will help curb cross-border fuel smuggling by improving transparency and efficiency in product delivery.
The Dangote Group’s adoption of CNG-powered distribution marks a major step in modernizing Nigeria’s fuel infrastructure, combining economic impact with environmental responsibility for a more sustainable future.
