Dangote Refinery to Spend N1.07 Trillion Annually on Fuel Distribution, Launches Free Nationwide Delivery
(Springnewsng, June 30, 2025):
In a landmark move set to transform Nigeria’s fuel distribution landscape, the Dangote Petroleum Refinery has announced it will absorb over ₦1.07 trillion annually in logistics costs to enable free nationwide delivery of petrol and diesel to marketers and major consumers across the country.
According to a statement issued by the company on Sunday, this initiative—beginning August 15, 2025—aims to significantly reduce fuel pump prices, curb inflation, and stimulate economic growth by eliminating transportation expenses for fuel marketers and industrial users.
The company said it has already invested ₦720 billion in the procurement of 4,000 Compressed Natural Gas (CNG)-powered trucks and the development of CNG “mother and daughter” refueling stations across Nigeria. This bold investment is expected to save Nigerian consumers over ₦1.7 trillion annually in energy costs.
“This transformative logistics initiative will not only reduce the cost of fuel but also improve the profitability of over 42 million Micro, Small and Medium Enterprises (MSMEs) across the nation,” the statement noted.
The refinery plans to meet Nigeria’s daily fuel demand—65 million litres, including 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel—through direct delivery to filling stations, industrial hubs, and high-volume consumers.
With average logistics costs estimated at ₦45 per litre, the Dangote Refinery will cover annual distribution costs exceeding ₦1.07 trillion, making it the largest free fuel delivery initiative in Africa.
The programme also aims to resuscitate dormant filling stations, create over 15,000 direct jobs, and enhance environmental sustainability. Roles to be created include drivers, station managers, and attendants for the new CNG stations.
Dangote Group emphasized that the initiative is part of its broader strategy to eliminate logistics bottlenecks, reduce smuggling, lower production costs, and boost Nigeria’s economic development.
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