Dangote Refinery Receives 4,000 Brand-new CNG Trucks For Fuel Distribution Nationwide

July 27, 2025

Dangote refinery has announced the arrival of 4,000 brand-new CNG-powered trucks to be used in the distribution of petroleum products across Nigeria.

A video shared on the company’s X handle on Saturday showed the arrival of vessels containing the brand-new CNG trucks and subsequently offloading at the port.

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“We are delighted to receive 4,000 brand-new CNG trucks as part of our bold distribution initiative, championing cleaner energy and more efficient transportation across Nigeria and beyond,: the company wrote in a statement accompanying the video.

Dangote Refinery had in June, announced plans to import 4,000 CNG-powered trucks for the distribution of petrol and diesel nationwide, a bold move aimed at mitigating the cost of logistics, making the products cheaper and ensuring availability.

The company said this initiative is part of a N720 billion ($470 million) investment to modernize Nigeria’s downstream petroleum sector.

The CNG trucks are 40 per cent more cost-efficient than diesel tankers, reducing logistics expenses and lowering fuel prices for consumers.

It is expected to cut Nigeria’s annual fuel transport costs by N1.7 trillion ($1.1 billion) while reducing carbon emissions.

READ ALSO: Again, Dangote Refinery Slashes Petrol Ex-depot Price To ₦820

The nationwide distribution begins on 15 August 2025, targeting Nigeria’s daily demand of 65 million litres of refined products (PMS, diesel, and aviation fuel).

The refinery will absorb N1.07 trillion annually in distribution costs, eliminating middlemen and supply chain markups.

 

Job Creation And Industry Impact

The initiative is projected to create 15,000 jobs in logistics and CNG station operations nationwide.

However, traditional tanker drivers fear job losses as Dangote shifts to direct deliveries, bypassing independent transporters.

Some industry groups, including Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) have expressed concerns about potential risks of monopoly.  They alleged Dangote has succeeded in dominating cement and sugar markets, claiming that a similar thing might happen in the downstream petroleum industry, where Dangote is now a major player.

Others, like the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed support for the move, citing long-standing inefficiencies in Nigeria’s fuel distribution system.

The refinery, operating at 85% of its 650,000-barrel/day capacity, aims to leverage this fleet to stabilize fuel supply and curb smuggling.

The initiative aligns with Nigeria’s National Gas Expansion Programme, promoting CNG as a cleaner alternative to diesel

 

 

 

 

 

 

victor ezeja
Correspondent at  |  + posts

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

Victor Ezeja

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

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