Dangote Petroleum Refinery & Petrochemicals has begun receiving 4,000 compressed natural gas (CNG) powered trucks, a cornerstone of its fuel distribution logistics programme set to commence on 15 August.
The move is positioned to transform Nigeria’s fuel supply chain by driving down logistics costs and improving delivery efficiency for consumers nationwide.
The fleet, arriving through Apapa Port, represents a capital outlay estimated at N720 billion, underscoring the company’s determination to introduce forward-thinking solutions as the world’s largest single-train refinery continues to expand its operational reach.
The first batch of trucks recently cleared Apapa Port and was officially welcomed at the refinery’s Ibeju-Lekki complex by Dangote Industries Ltd’s Vice-President of Oil and Gas, Devakumar Edwin. The reception drew refinery personnel and customers, many eager to witness a tangible step towards enhanced fuel accessibility.
Onlookers along the route from Apapa to Ibeju-Lekki praised the company’s decisive approach in tackling long-standing logistical constraints within Nigeria’s downstream petroleum sector.
Group Chief of Branding and Communication, Dangote Industries Limited, Mr Anthony Chiejina, offered further detail on the rollout, describing it as “a groundbreaking development in Nigeria’s fuel distribution framework.” He noted that the complexities of global supply chains make the delivery of these purpose-built CNG tankers a noteworthy feat, ensuring operational resilience as the fleet scales up.
“Our strong commitment to this initiative is reflected in close coordination with regulatory agencies and industry stakeholders to ensure smooth deployment,” Chiejina said. “We anticipate that this strategy will substantially cut distribution costs while boosting fuel availability nationwide.”
He confirmed that at least sixty more shiploads of the trucks are scheduled to arrive over the next six weeks.
The refinery expects the programme to deliver sweeping efficiency gains for the downstream sector, encouraging transparency, removing transport bottlenecks and reinforcing Nigeria’s energy security.
In June, the company announced the N720 billion investment to roll out the CNG-powered trucks, projecting annual savings of over N1.7 trillion in fuel distribution costs. The privately owned plant is prepared to absorb more than N1.07 trillion in yearly logistics expenses.
The initiative is anticipated to benefit over 42 million micro, small and medium-sized enterprises (MSMEs) by reducing their energy bills, increasing profitability and stimulating economic growth. Lower distribution costs are also expected to ease inflationary pressures and support industrial expansion.
Beyond cost savings, the strategy is expected to breathe new life into dormant filling stations, generating over 15,000 direct jobs across the logistics chain, from drivers to station managers and attendants at newly established CNG outlets.
The refinery also stated that the deployment will help deter cross-border fuel smuggling while advancing a cleaner, more sustainable distribution network.
Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), described the move as both “impressive in scale” and “highly strategic,” noting that it signals CNG as a viable, immediate answer to high energy costs, emissions concerns and supply chain inefficiencies. “This is a milestone achievement in our mission to fast-track the adoption of gas-powered transport,” he added.
