Dangote Petroleum Refinery has revealed that its N720 billion funding in its landmark nationwide petroleum merchandise distribution initiative will save Nigerians over N1.7 trillion yearly.
This disclosure is contained in an announcement issued by the Dangote Group on Sunday, June 30, 2025, the place it offered an replace on the refinery’s funding in 4,000 Compressed Pure Fuel (CNG) powered vans for the scheme.
Dangote refinery, in its assertion, identified that the power agency will take in over N1.07 trillion yearly in gasoline distribution prices.
It acknowledged that this initiative, which eliminates transportation prices for gasoline entrepreneurs and large-scale customers, is predicted to assist scale back pump costs and inflation.
42 million MSMEs to profit
The refinery acknowledged that the initiative can be poised to considerably profit over 42 million Micro, Small and Medium Enterprises (MSMEs) by lowering power prices and enhancing profitability.
The assertion reads, ‘’Dangote Petroleum Refinery has invested over N720 billion to implement its landmark initiative of deploying 4,000 Compressed Pure Fuel (CNG)-powered vans for the nationwide distribution of petroleum merchandise, which is predicted to save lots of Nigerians over N1.7 trillion yearly.
‘’This daring step will see the privately-owned refinery take in over N1.07 trillion yearly in gasoline distribution prices. The initiative can be poised to considerably profit over 42 million Micro, Small and Medium Enterprises (MSMEs) by lowering power prices and enhancing profitability.
‘’The initiative, which eliminates transportation prices for gasoline entrepreneurs and large-scale customers, is predicted to assist scale back pump costs and inflation. From 15 August, Dangote will start the direct supply of petrol and diesel to filling stations, industrial amenities, and different high-volume customers.’’
In line with an announcement from the refinery, it goals to satisfy Nigeria’s every day consumption of 65 million litres of refined petroleum merchandise. This consists of 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation gasoline.
With the typical logistics price estimated at N45 per litre, the refinery will cowl over N1.07 trillion yearly in free distribution bills.
Presidency, consultants reward scheme
Dangote Group, in its assertion, mentioned the presidency recommended the scheme, describing the initiative as a pivotal second within the Federal Authorities’s push to mainstream gas-powered transportation.
The corporate mentioned the Industrial Coordinator of the Presidential Compressed Pure Fuel Initiative (PCNGI), Tosin Coker, praised the transfer as a powerful vote of confidence in Nigeria’s gas-fueled future.
He was quoted as saying, “Dangote Group’s acquisition of 4,000 CNG vans isn’t solely spectacular in scale but in addition extremely strategic,” he mentioned. “It indicators to the market that CNG is now not a distant prospect however a present, sensible answer to excessive power prices, emissions, and provide chain challenges. PCNGI regards this as a milestone achievement in our efforts to speed up gas-powered transport adoption.”
In line with the corporate, the Unbiased Petroleum Entrepreneurs Affiliation of Nigeria (IPMAN) additionally recommended the event, calling it a well timed decision to longstanding challenges within the downstream sector.
IPMAN’s Nationwide Publicity Secretary, Chinedu Ukadike, acknowledged that the brand new mannequin would considerably scale back logistical burdens for impartial entrepreneurs by delivering extra reasonably priced gasoline on to filling stations.
Ukadike mentioned, “Our pipelines have been non-functional for years, but nothing has been finished to revive the infrastructure linking the nation’s 21 depots. We’ve needed to depend on costly transport from coastal depots. Dangote’s intervention lifts an enormous burden off the shoulders of impartial entrepreneurs.”
Growth Economist and Coverage Analyst, Professor Ken Ife, mentioned the initiative would drive down the worth of PMS and yield widespread advantages for Nigerians.
Additionally, quoted within the assertion, the CEO of Monetary Derivatives Firm, Bismarck Rewane, dismissed issues concerning the refinery changing into a monopoly, arguing that inefficiencies within the sector have been systemic and long-standing. He added that the scheme would assist curb the parasitic position historically performed by middlemen.
Rewane mentioned, “What Dangote is doing achieves two key aims: delivering merchandise throughout the complete nation at a uniform worth by eliminating bridging prices, and considerably lowering logistics bills by means of the usage of CNG-powered vans to succeed in each nook of the nation.
“In financial phrases, middlemen who usually don’t make investments are sometimes considered as parasitic, extracting margins merely for distributing items. Dangote is bypassing this layer by immediately dealing with distribution and, notably, offering credit score amenities to the retail finish of the enterprise.’’
What you must know
Dangote Petroleum Refinery had on June 15, 2025, introduced plans to start the nationwide distribution of PMS and diesel beginning August 15, 2025, marking a big step in direction of reshaping Nigeria’s downstream petroleum market.
- As a part of the initiative, the corporate has additionally deployed 4,000 brand-new Compressed Pure Fuel (CNG)-powered vans to assist nationwide distribution, with free logistics assist might be offered to registered petrol sellers, entrepreneurs, producers, telecom companies, aviation operators, and different customers.
- Dangote Group is investing N720 billion within the acquisition of those vans in addition to the institution of nationwide CNG ‘mom and daughter’ stations, amongst different infrastructure to implement the free distribution initiative.
- This strategic programme varieties a part of Dangote’s broader dedication to eliminating logistics bottlenecks, enhancing power effectivity, selling environmental sustainability, and supporting Nigeria’s financial improvement.
- The corporate famous that decrease gasoline distribution prices will assist scale back manufacturing prices, ease inflationary pressures, and stimulate financial progress.
The initiative can be anticipated to resuscitate dormant filling stations, fostering job creation within the course of. Over 15,000 direct jobs are projected to be created throughout the logistics chain, together with drivers, station managers, and attendants on the CNG stations.
The refinery additionally emphasised that this programme would assist curb cross-border smuggling of petroleum merchandise and assist a extra environment friendly and environmentally pleasant distribution system.
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