Nigeria to Save N1.7 Trillion Yearly as Dangote is Set to Sell Fuel to Marketers Directly
- Dangote Refinery plans to absorb over N1.07 trillion annually in fuel distribution costs by supplying petrol, diesel, and aviation fuel directly to marketers
- The company has invested N720 billion in 4,000 CNG-powered lorries and nationwide CNG stations to implement this cost-saving initiative
- This move is expected to reduce inflation, cut production costs, create over 15,000 jobs, and curb cross-border fuel smuggling
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
As part of its aim to supply fuel directly to marketers across Nigeria, the Dangote Petroleum Refinery estimates that it will absorb more than N1.07 trillion annually.
Source: Getty Images
The refinery disclosed that it had already spent over N720 billion to implement the plan, which is expected to save Nigerians more than N1.7 trillion yearly by distributing fuel products nationwide using 4,000 lorries powered by compressed natural gas (CNG).
“This bold step will see the privately-owned refinery absorb over N1.07 trillion annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability,” the company said in a statement made available to our reporter on Sunday.
It is expected that the programme, which seeks to eliminate transportation expenses for fuel marketers and major users, would help lower inflation and fuel pump prices.
Dangote announced that it would begin delivering petrol and diesel directly to filling stations, factories, and other large consumers from August 15.
The statement noted that the goal is to supply the 65 million litres of refined fuel products that Nigeria consumes daily.
“This includes 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
“With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07 trillion annually in free distribution expenses. Dangote Group is investing N720 billion in the acquisition of 4,000 CNG-powered lorries, as well as the establishment of nationwide CNG 'mother and daughter' stations, among other infrastructure to implement the free distribution initiative,” the company noted.
It further explained that the initiative is part of Dangote's broader strategy to remove logistical barriers, improve energy efficiency, promote environmental sustainability, and contribute to Nigeria's economic growth.
The firm emphasised that lowering the cost of fuel delivery would reduce inflationary pressures, spur economic growth, and cut production costs.
“The initiative is also expected to revive dormant filling stations, creating jobs in the process. Over 15,000 direct jobs are projected to be created across the supply chain, including drivers, station managers, and attendants at the CNG stations,” the statement added.
Source: Getty Images
The refinery also highlighted that the programme would help curb cross-border smuggling of fuel products and support a more efficient and environmentally friendly distribution system.
Filling stations immediately change petrol price
Legit.ng earlier reported that Dangote Refinery increased the ex-depot price of Premium Motor Spirit (PMS), also known as petrol.
On Friday, June 20, 2025, Dangote Refinery raised the ex-depot price of petrol by N55 per litre, from N825 to N880.
Members of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), NNPC retail outlets, Independent Petroleum Marketers Association of Nigeria (IPMAN), and the Major Energy Marketers Association of Nigeria (MEMAN) quickly adjusted their metres in response to the increase.
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Source: Legit.ng
