Dangote sets rollout date for fuel deliveries after acquiring 4,000 CNG trucks
Dangote Group has announced it will begin direct delivery of refined petroleum products nationwide starting August 15, 2025, using a new fleet of 4,000 Compressed Natural Gas (CNG)-powered trucks.
The initiative—backed by a staggering ₦720 billion investment—is poised to dramatically reduce fuel transportation costs, cut emissions, and improve supply reliability, especially in underserved areas.
With Nigeria consuming an estimated 65 million litres of refined products daily—including petrol (45m litres), diesel (15m litres), and aviation fuel (5m litres)—the stakes are high. By using CNG trucks, which cost about 40% less to operate than diesel vehicles, Dangote aims to slash logistics costs and eliminate the supply bottlenecks that have long plagued the downstream petroleum sector.
“This is a game-changer for the entire fuel supply chain in Nigeria,” the company said in a statement. “With logistics savings expected to exceed ₦1 trillion annually, we’re not only improving efficiency—we’re also lowering prices at the pump.”
Dangote’s direct-to-customer distribution model will bypass traditional petroleum marketers, enabling petrol stations, industrial plants, manufacturers, telecom firms, and aviation companies to purchase directly from the Dangote Petroleum Refinery.
To facilitate nationwide delivery, the company is also investing in a network of CNG ‘mother and daughter’ stations, backed by a support fleet of over 100 tankers. A credit facility is being offered to bulk buyers who purchase at least 500,000 litres, providing an additional 500,000 litres on two-week credit terms under bank guarantee.
Disruptive—but Not Without Controversy
While the move has drawn praise for its innovation and alignment with Nigeria’s clean energy goals, not everyone is applauding. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed concern that the shift could marginalize smaller operators, leading to job losses and increased market consolidation.
“This is about control of the entire supply chain,” a critic warned. “It could crowd out thousands of smaller players.”
The plan is expected to revitalize inactive petrol stations, stimulate small and medium-sized enterprises (SMEs), and boost government revenue. With the refinery running at 85% of its massive 650,000 barrels-per-day capacity, its sheer scale allows for reduced production costs and better pricing leverage.
Experts suggest the project could also help curb inflation by reducing fuel-related overheads in key sectors—from transport to telecoms—providing broader economic benefits.
The initiative aligns closely with Nigeria’s energy transition goals and President Bola Ahmed Tinubu’s “Renewed Hope Agenda”, which emphasizes economic reform, infrastructure renewal, and private-sector leadership.
The Federal Government’s Naira-for-Crude exchange scheme played a critical role in stabilizing fuel supply, according to Dangote.
What’s Next
Registration and KYC verification for interested partners is already underway and will run until August 15, 2025. Companies and station owners interested in accessing the fuel distribution program are urged to enroll immediately.
Contact Details for Registration
📞 +234 707 470 2099 | 📧 [email protected]
Bottom Line
This isn’t just a new fuel delivery plan—it’s a redefinition of Nigeria’s downstream energy sector. Whether it boosts competition or stifles it remains to be seen, but one thing is certain: Dangote is going full throttle on energy independence—Nigerian-made, Nigerian-delivered.
