Aliko Dangote, Africa’s wealthiest businessman and President of Dangote Group, made headlines with the deployment of 4,000 Compressed Pure Gasoline (CNG)-powered vans to distribute petroleum merchandise throughout Nigeria.
However based on monetary knowledgeable and KSBC Information Assets founder, Chika Mbonu, the daring transfer is greater than only a enterprise growth—it’s a survival technique.
Talking on the Nairametrics podcast Drinks n Mics on Friday, Mbonu supplied new insights into the motivation behind Dangote Refinery’s distribution plan.
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Blockade by market opponents
Mbonu claimed that the deployment of 1000’s of CNG-powered tankers is a response to a blockade by market opponents who allegedly refused to carry merchandise from the refinery.
“Now I’m linking one thing it’s possible you’ll not know that has to do with the 4,000 vans Dangote initiative. It got here from the truth that ‘it’s both I try this or I die, “Mbonu acknowledged on the present.
“He was producing, he had merchandise, however they weren’t shopping for from him. Fairly, they had been illegally importing petrol.”
“So the man simply mentioned, ‘I’m gonna survive,’ and mentioned, ‘Let me battle this out.’ That’s why he mentioned, ‘Who’re the those who purchase this petrol? Let me take the battle to them.”
Whereas this revelation has not been formally confirmed by the Dangote Group, Mbonu emphasised that his claims are based mostly on direct communication with Aliko Dangote himself.
Distribution Technique Backed by CNG Know-how
On June 15, 2025, Dangote Petroleum Refinery introduced it might begin large-scale distribution of Premium Motor Spirit (PMS) and diesel beginning August 15, 2025. As a part of this sweeping rollout, the corporate unveiled a fleet of 4,000 brand-new CNG-powered tankers to ship gasoline nationwide.
In keeping with the corporate, free logistics assist can be made obtainable to a variety of stakeholders, together with registered petrol sellers, main entrepreneurs, producers, telecom corporations, aviation corporations, and different energy-intensive customers.
The refinery can be establishing CNG daughter booster stations and mini distribution hubs, supported by an extra fleet of over 100 specialised CNG tankers.
Financial and Environmental Impression
This transition to CNG-powered distribution aligns with broader objectives to scale back logistics prices, improve gasoline accessibility, and promote the adoption of cleaner power options in Nigeria’s downstream oil and gasoline sector.
Consultants imagine the initiative may have transformational ripple results, corresponding to reviving dormant petrol stations and depots, decreasing working and distribution bills for companies, and supporting the expansion of SMEs by enhancing entry to dependable power.
It may additionally assist in producing jobs throughout the petroleum and logistics worth chain, extending gasoline entry to underserved and rural communities, and easing inflation and boosting financial restoration, particularly in economically fragile areas.
By eradicating reliance on conventional diesel-powered transportation and providing direct-to-consumer logistics, Dangote’s daring transfer is being hailed as a pivotal second for Nigeria’s power independence and downstream resilience.
What You Ought to Know
Beneath the brand new distribution programme, direct gross sales can be obtainable to gasoline entrepreneurs, producers, telecom corporations, and different main customers. Petrol stations sourcing PMS or diesel immediately from the Dangote Refinery will profit from the complimentary supply service.
- The refinery has launched a credit score facility for bulk consumers. Firms buying a minimal of 500,000 litres can be eligible for an extra 500,000 litres on credit score, repayable inside two weeks, topic to a sound bank assure.
- The corporate additionally acknowledged the Federal Authorities’s assist by the Naira-for-Crude change scheme, which it mentioned has helped stabilise gasoline provide amid world market volatility.
The corporate says it stays dedicated to creating power inexpensive, accessible, and sustainable for all Nigerians, rural or city, small-scale or industrial.
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