Dangote Confirms Rollout Date For Nationwide Fuel Distribution, Move to Unleash N720bn CNG Trucks

• The Dangote Group has set the date to commence the nationwide fuel distribution to end-users
• The company also confirmed that it is investing billions of naira in acquiring CNG-powered trucks to meet the distribution needs
• A recent statement by the conglomerate says that it plans to save over N1 trillion annually in logistics costs

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Dangote Group has confirmed plans to commence delivery of refined petroleum products to filling stations, industrial plants, and other bulk fuel consumers nationwide.

The company has also announced a major investment in 4,000 compressed natural gas-powered trucks, costing N720 billion.

Dangote’s plans: What’s in it for Nigerians?

The move marks a significant shift in Nigeria’s fuel distribution logistics, aimed at improving distribution efficiency and slashing transportation costs.

The company revealed that the new CNG fleet will be deployed beginning August 15, 2025.

A Punch report stated that the company said the move was designed to meet Nigeria’s daily consumption need of 65 million litres of refined products, including 45 million litres of petrol, 15 million litres of diesel, and five million litres of aviation fuel.

Data released by the Dangote Group said that with an average logistics cost of N45 per litre, the mega refinery will cover N1.07 trillion annually in free distribution expenses.

How will Dangote achieve the feat?

Legit.ng reported that the company is investing N720 billion to acquire 4,000 CNG-powered trucks and also establish nationwide CNG mother and daughter stations, among other infrastructure to boost the initiative.

The conglomerate's decision is part of a larger plan to adopt cleaner energy sources while circumventing third-party marketers and eliminating the bureaucracy that has plagued fuel delivery in Nigeria.

According to reports, with operations set to begin in phases, industry watchers are closely monitoring what will happen in the downstream petroleum industry.

Legit.ng previously analysed the company’s involvement in nationwide distribution and its impact on downstream players like independent marketers and end-users.

The mega refinery is currently operating at about 85% of its installed capacity, making it one of the world’s largest refining facilities, and the biggest in Africa.

With the CNG rollout, logistics costs are expected to drop sharply, thereby causing a drop in pump prices.

This combination eliminates the traditional supply chain embedded in pump prices.

Is Dangote planning a monopoly?

Experts have said that Nigeria’s deregulated downstream sector offers Dangote full control, from refining to delivery and could enable significant savings for consumers and bulk buyers.

They say that the return to direct supply is expected to boost supply reliability and show the company’s commitment to cleaner, more efficient logistics that align with Nigeria’s energy transition goals.

However, the Petroleum Products and Retail Outlets Owners Association of Nigeria (PETROAN) has raised concerns that Dangote’s plan could wipe out smaller operators.

They warn that the move could lead to massive job losses, further market dominance, and a long-term erosion of competition in the industry, an assertion the Dangote Group refuted.

Dangote gives reason for importing US crude

Meanwhile, Legit.ng earlier reported that the Dangote Refinery has attributed its sudden appetite for US crude to the domestic supply shortage.

Aliko Dangote, President of Dangote Industries, disclosed this during a visit by the Technical Committee of the One-Stop Shop (OSS) on the sale of crude and refined products in naira.

Dangote explained that despite the naira-for-crude scheme significantly easing FX pressure and contributing to local price stability, continued domestic supply shortages were forcing the mega refinery to rely on crude from the US.

Source: Legit.ng